If you’re an HP follower then you must have heard that the company pulled the sale of web OS devices which includes Touchpad from HP, was it a drastic and dramatic decision? What do you guys think? And then what we got in news is that this company is also interested in selling out its personal system groups which deals with laptops and desktops, this is going to be a shocker for all those who support this company and fancy its products.
This news came out in the wilds from company’s latest earning reports. The company has even stated that they’re looking forward to offload its PC division as they’ve found a way out for becoming a business to business rather than just being a consumer facing company.
We’ve been getting back to back details upon this company and as a part of transformation, HP uncovered that its team of directors has authorized the exploration of strategic alternatives for company’s Personal System Groups. However, HP will have to look deep into the matter before they start changing things up for the better. Bunch of transactions must be completed in order to eliminate your company from all kinds of businesses or even from a small part of it.
Did you know that HP’s Personal System Groups revenue has decreased from 3% over the year, the company also said that in a statement before adding up that “PSG will handle the PC market leader in terms of units, revenue and also profit share”
HP is planning to focus on its investments, resources and a solidly built management attention to get high value solutions for the business. They’ll also be covering up small businesses and public sector customers.
“We have been through with our PSG and it demonstrates our commitment to enhance shareholder value and also enhancing our financial focus, “said by Leo Apothekere, who is HP’s president and also chief executive officer. “In the month of March we plotted a strategy for HP which was built on cloud, we also gathered solutions and software’s to satisfy the requirements of our customers. Indeed, these plotting were heavily shaped by secular market. We also looked back at how technology ic consumed and deployed. This was the time when we really got to know about the acceleration of these market trends.”
“We also believe that exploring alternatives for PSG could enhance the performance, it lets you compete and provides greater values for your company’s shareholders.” said Apotheker. “PGS is basically a world-class scale of business with great leading market share position and it has a highly effective supply chain.”
The company has also stated that they’ll explore more strategic alternatives, including how to separate its PC Division into another company through a spin-off or other transactions that would be free of tax.
This is something that Motorola had also done with its consumers and enterprise businesses and no doubt this strategy has helped the companies rising up to the top once again in no time. Motorola’s Mobility will be sold to Google for $12.5gn. So, HP would be hoping to get things done in quite a similar way as well.
HP is expecting that this process would take around 12 to 18 months to finish up to the max.