HP will keep its PC business

HARDWARE, SERVICES AND PRINTER INK FIRM HP has made a decision about the future of its Personal Systems Group - the part that makes PCs - and will keep it.

The firm was not sure what it would do with the PC business while software and services man Léo Apotheker was in charge, but he's not anymore, Meg Whitman is, and what she says goes.

"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 Whitman, HP president and CEO. "HP is committed to PSG, and together we are stronger."

The firm carried out a strategic review before making the decision. It is likely that this included some of the "Whaaaaaaaaaaaaat?" reactions and reports that came out at the time of Apotheker's announcement, but HP would only say that it was a "data-driven evaluation".

The result of the evaluation was a realisation that personal computers are tied to HP's business, contribute to its brand value and would be much too expensive to spin off into a separate business. µ