Summary Box: HP says it won’t remove off PC unit

Published October 28, 2011 by
Technology - General News

THE DECISION: Hewlett-Packard Co. said late Thursday that it decided not to sell or spin off its PC business, which is the world’s biggest maker of desktop and notebook computers. The idea to do so was first brought up by the tech conglomerate’s now former CEO Leo Apotheker in August.

THE REASONING: HP said an evaluation of the business showed deep integration across key operations, such as its supply chain and procurement. Ultimately, the review found that the cost of recreating these operations in a standalone company outweighed the benefits of separating the PC unit.

THE BACKGROUND: The PC unit supplies a third of HP’s revenue, and it’s an area where HP is a market leader. It is HP’s least profitable division, though.

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