HP is not quitting PC business, might sell it though

MAKER OF EXPENSIVE PRINTER INK HP has strongly denied saying that it will quit its PC business, despite having said last week that it plans to spin it off or sell it.

We debated whether spinning something off is the same thing as quitting it and, since we assume that means give it to someone else, we can only think that they mean one and the same.

Not so to Paul Hunter, MD for HP and the UK and Ireland PSG management team, who seems to be at odds with the firm's original announcement.

"HP reported that it plans to announce that its board of directors has authorized the exploration of strategic alternatives for its Personal Systems Group (PSG). HP will consider a broad range of options that may include, among others, a full or partial separation of PSG from HP through a spin-off or other transaction," said a statement released early this week.

We consider "full or partial separation" of the HP personal systems group, which again we cannot help but think means selling it off, means "quitting". Further proof, perhaps, is found in the rest of the statement, which adds the suggestion that HP could exit its PC business through a "spin-off or other transaction".

Even Léo Apotheker seems to agree and rested from swinging his all-change axe as he added to the press release. "The exploration of alternatives for PSG demonstrates our commitment to enhancing shareholder value and sharpening our strategic and financial focus," he said, suggesting that the future of HP will be something other than making and selling hardware.

"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. 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. [We believe] the exploration of alternatives for PSG, would allow HP to more effectively compete and better execute its focused strategy."

But Hunter, in a letter that comes from the PR company representing HP, takes issue with our reading, however, and tells us in no uncertain terms that we are wrong.

"I'd like to firstly clear up any misunderstanding that has arisen from the earnings announcement around the future of the Personal Systems Group," he said in a letter to our editor.

There have been a number of incorrect stories saying that HP is quitting the PC business. Let me be absolutely clear in saying that at no stage has HP said it is quitting the PC business. Three options are being investigated, and whether the company is spun off, sold or kept in the HP portfolio, the team in the UK remains committed to creating and supporting great products and services."

It still does not make much sense to us, but apparently Hunter's line is that although HP might not physically be in the PC business, it will actually still be in the PC business.

"HP PSG UK is only going in one direction, forwards and that means customers can have confidence that existing HP products will be supported under the terms of their warranties as will any future purchases."

Perhaps being in the PC business means supporting current models and offering the occasional update to WebOS, although Hunter did say that how that will "be managed" is still up for some debate.

"Obviously the announcement has raised a number of questions outside those mentioned above. We are still working through some of these, but I wanted to try and address as many as I could. Regarding PSG activity in the UK, it's very much business as usual," he added. µ