14 DAY TRIAL // HP announced major changes to its business plan, including, but not limited to, the spin-off of its PC business, the goal being to move the company into a position where it might draw greater value and margins.
One would think that the sudden appearance of the HP TouchPad with 64 GB of storage space would herald further tablet efforts on HP's part.
Apparently, just hours after the product was spotted online, HP issued a press release in which, among other things, it announced that it was axing all webOS projects.
This is just a part of its restructuring intentions, as there is a decision that one might say is even more major.
Basically, the company has decided to spin off its Personal Systems Group (PSG), meaning that HP's PC business will become a separate business.
"In March we outlined a strategy for HP, built on cloud, solutions and software to address the changing requirements of our customers, shaped heavily by secular market trends that are redefining how technology is consumed and deployed,” said Léo Apotheker, HP president and chief executive officer. PC Business Becomes Unsuitable.
“Since then, we have observed the acceleration of these market trends, which has led us to evaluate additional steps to transform HP to meet emerging opportunities."
HP's PSG currently is the leading PC supplier in the world, but the outfit considers it wise to start things early if they are to ensure the best interests of the company as a whole, especially with the profitability of the PC segment having dwindled.
“We believe exploring alternatives for PSG could enhance its performance, allow it to more effectively compete and provide greater value for HP shareholders,” said Apotheker.
“PSG is a world-class scale business with a leading market share position and a highly effective supply chain and broad reach and go-to-market capabilities. We believe there are alternatives that could afford PSG more autonomy and flexibility to make strategic investment decisions to better position the business for its customers, partners and employees.”