Why hp spin off pc

At the time, she decided to reverse Apotheker's decision to spin off the PC business, saying PCs were key to long-term relationships with customers. But the idea of splitting HP into a strong, nimble PC hardware business and a more focused enterprise company has lingered.

There is precedent in the tech industry for the move. An HP without a PC and printer business would look something like arch-rival IBM, which has focused on enterprise technology and services after selling off first its PC operations, and then its server business, to Lenovo. With HP's PC business coming off a strong quarter , it might be the right time for the move. PC revenue was up 12 percent year over year during the quarter. The company shocked Wall Street and the tech industry alike when it announced Aug.

That division mainly comprises HP's PC business, which is the world's largest. A sale or spin-off were two of the options being considered. The company said it believes the PC business is too ingrained in the company's supply chain and other key HP operations to let it go. Computers also help promote HP's brand, and are a crucial part of the company's "one-stop shop" services that it offers to corporate customers, HP said.

HP's analysis also showed that spinning off the division would be so costly that it outweighed any benefit of dropping PCs. Curiously, and perhaps paradoxically, Apotheker said HP will run Autonomy as a separate company, but HP will "look for synergies. The share price swung wildly after reports of the PC spin-off plan first broke late Thursday morning. The various moves are part of the company's stated goal of transitioning into faster-growing, more profitable businesses like software, servers and corporate technology services.

The bold move to reshape HP -- the world's largest tech company by annual revenue -- would be in line with the strategic vision CEO Leo Apotheker unveiled in March. In May, Apotheker told analysts that the company needed to put greater investment into its "value-added services" or it will "be left with a business that is running out of steam.

Consumer PC sales have slumped industry-wide for the past several quarters, as tablets like Apple's AAPL , Fortune iPad have slowed netbook and mini-notebook sales. It's time again for world-changing innovation. And so, it's time we realised we're at a crossroads in an evolving HP. It says that "our preferred course is to spin off our PC business into a separate company, creating a more agile organisation to help us better anticipate change and quickly respond to customers.

This will give us the freedom to deliver the best new products at the best prices faster than we ever have before.