HP decides to keep its PC business

NEW YORK - Hewlett-Packard said Thursday it will continue to sell PCs, after all, reversing an earlier decision to exit one of its core business lines.

The company surprised Wall Street and the technology industry alike when he announced that on August 18 its board is exploring "strategic alternatives" for its Personal Systems unit. This division consists mainly of HP's PC business, which is the largest in the world. A sale or demerger of two of the options considered.

However, HP (HPQ, Fortune 500) now says he believes that computers should be part of your future.

"It is clear that after our analysis that the maintenance of Personal Systems Group HP is suitable for customers and partners, shareholders rights and the rights of employees," said Meg Whitman, the new CEO of HP named the month past, in a statement. "HP is committed to PSG, and together we are stronger."

The company said it believes the PC business is too entrenched in the supply chain companies and other key HP operations to let go. Computers also help promote the brand HP, and are a crucial part of the company "one-stop" services offered to corporate customers, HP said.

HP analysis also showed that the split in the division would be so costly that it outweighed any benefit of leaving your PC.

The decision to get rid of PC arrived two months after then-CEO Léo Apotheker, who favored fast-growing business, very profitable and HP server software on its PC business, low margin. HP's PC unit was one of the most profitable in the industry, but the company still only squeezed a 5% margin on the devices.

Apotheker also said that PCs are not flying off the shelves more. Mobile devices like smartphones and tablets have begun to eat into sales of PC.

"The tablet is indeed real," said August. "Consumers are changing the ways we use computers."

HP's announcement provoked an uproar of technology analysts of many. They called all-in bet in software and services a risky move for HP, given that its service has spent virtually nothing and its software business represents only 2% of company sales.

Hardware has been the cornerstone of HP PCs that make up one third of the income of the company. Despite its recent problems, HP continues to sell more computers than any other supplier, transport 16.2 million PCs last quarter - enough to give control of 17.3% market share, according to Gartner.

Killing the PC can confuse the customer base HP, some analysts said - particularly after high-profile merger with Compaq did 10 years ago that HP top PC manufacturer in the world.

Apotheker was fired months after its announcement strategy, but current CEO Meg Whitman, said of his hiring last month Apotheker's plan to exit PC is still considered.

But the company said Thursday led to a final stake in the heart of the era of Apotheker.

"As part of HP PSG will continue to provide customers and partners the benefits of product innovation and global scale through the broadest portfolio of industry PCs, workstations and more," said Todd Bradley, Head of Unit, Personal Systems, HP. "We intend to make the PC business leader in the world even better."

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