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Hewlett-Packard (HPQ) says it's keeping its PC division after all, because it would cost more to...

Hewlett-Packard (HPQ) says it's keeping its PC division after all, because it would cost more to spin it off. Turns out that the operation is more tightly integrated into functional divisions like IT and the supply chain than realized.
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Comments (5)
  • Canary Cash
    , contributor
    Comments (471) | Send Message
     
    What would be really interesting is to see ARM processors trickle down into the PC division
    27 Oct 2011, 04:11 PM Reply Like
  • Richard Mackenzie
    , contributor
    Comments (453) | Send Message
     
    Good thing they figured that out well in advance of making any decision to spin it off. I guess that new CEO sees things the Board of Directors missed in its prior review of this decision. It's always good to hear that the leaders of a company are still "realizing" things about their business. Someday they'll become experts in the field of running a tech company. When that happens the competition better look out!
    27 Oct 2011, 04:21 PM Reply Like
  • Poor Texan
    , contributor
    Comments (3533) | Send Message
     
    "Turns out that the operation is more tightly integrated into functional divisions like IT and the supply chain than realized."

     

    If that's not an outright sell signal I don't know what is. How can a management team be successful if they don't understand their own operations. Of course, based on the market action most investors were already on to this.
    27 Oct 2011, 04:31 PM Reply Like
  • mouki
    , contributor
    Comments (3) | Send Message
     
    Hey Poor Texan, agree. I think they found that the market reacted negatively to this trial balloon and so decided to reverse direction and needed to make up some plausible story.
    27 Oct 2011, 06:55 PM Reply Like
  • gigabob635
    , contributor
    Comments (244) | Send Message
     
    Doih! - But PC's were tightly integrated into HPQ supply chain when Meg, Leo and team decided to jetison them as well. Selling off PC's was to free capital and management focus that constrained HP from "Growing Up" and becoming a major player in delivering value added IT services that companies pay a premium for instead of staying a low margin player. I was skeptical of HPQ's ability to execute on the transistion - but applauded management for having the balls to finally make the move. Now they clearly have no clue how to crack the big leagues, remain executionaly challenged and lost a pair in the process. What does it say about the market though that the stock is up as a result?
    28 Oct 2011, 11:21 AM Reply Like
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