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HP’s PC division is still alive

HP’s PC division, which was rumored to be spun off by the company, is still alive as the company states in a news release. HP is the #1 PC manufactures in terms of total number of shipped units which also make the company the biggest partner of Microsoft in the personal computer business.

The rumors that HP was testing the developer preview of Microsoft’s next Windows operating system on its tablet, the Touchpad, may be true after all. In a news release, the PC manufactures announces that the PC division of the company will remain alive after rumors of the company planning to spin off its Personal System Group (PSG) division.

“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” said Meg Whitman, HP president and chief executive officer. She then continues saying that “HP is committed to PSG, and together we are stronger.”
HP, with its PC division, has shipped more PC than any other manufacturer although the margin of profit has been low comparatively with other divisions of the company. With tablets computers considered by many analyst as the main PC from factors, the company did not seem to have a viable plan especially using Windows 7 as the PC’s operating system. With the release of the developer previews of the next Windows, which has received positive praise for the new touch-centric interface, HP hopes to have viable features for the tablet PC, especially in the consumer side.

“As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry’s broadest portfolio of PCs, workstations and more,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “We intend to make the leading PC business in the world even better.”

On the business side, the PC business is different compared to the consumers in lots of aspects, HP’s other portfolio of products (IT performance management, IT management software, and Information Management products) are closely intertwined with its PC division.

In a statement, the company wrote that “The strategic review involved subject matter experts from across the businesses and functions. The data-driven evaluation revealed the depth of the integration that has occurred across key operations such as supply chain, IT and procurement. It also detailed the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value. Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation.”

While most of the other company division were profitable compare to it PSG, this move represents HP’s latest attempt to offer high quality PC products, especially in the tablet venue, which should be good news for Microsoft. HP is #1 manufactures of PC in terms of total number of PC shipped.

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