HP Will Keep Its PC Business

Whether or not the choice to spin off HP's PC division was what landed Leo Apotheker without his position as CEO, it looks like the company won't be going through with this plan in the end.

According to a press release that HP provided, to finally make things clear for everyone, the Personal Systems Group (PSG) will continue more or less as before.

This will doubtlessly make a lot of people happy, since analysts, HP's partners, former HP executives and even HP's rivals were of the same mind when they repeatedly said spinning off the PC division was a bad move, even a corporate suicide.

“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.”

HP reached this decision after a strategic review of PSG's current status and the alternatives that were available.

Originally, Leo Apotheker, former CEO, wanted to get HP itself out of the PC market and more focused on enterprise products.

Considering that HP was, and still is, the world's top supplier of PCs, this announcement came about as well as can be expected, causing the value of the company's stocks to plummet massively in a very short time.

Said stock should be able to recover, though Lenovo might still give HP a hard time now that it is second greatest PC maker and gunning for the top place.

“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. “HP is committed to PSG, and together we are stronger.”