HP will hang on to its personal computer division

Hewlett-Packard said today that it has re-thought its previous decision to sell its Personal Systems Group (PSG) and has decided the unit will remain part of the company.

In a written statement released today, Meg Whitman, HP’s new president and CEO said that “keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees.”

The decision to shed the low margin business was made in August by former CEO Léo Apotheker who was replaced by Whitman in September. At the time of her arrival, Whitman told financial analysts that HP remained committed to the sale of computer hardware and that the decision to spin-off PSG was being re-evaluated.

HP’s Personal Systems Group (PSG) is the world’s biggest maker of PCs with revenues of $40 billion annually, about a third of HP’s overall sales.

HP says that its decision to hang on to PSG after a strategic which detailed the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value.

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