Friday, August 19th 2011
HP Kills TouchPad, Could Spin Off PC Business
PC major HP announced its decision to scrap TouchPad, the company's flagship tablet device. But in a move that could rattle the OEM industry, there are feelers that HP might spin off its PC business. This is similar to what IBM did with its PC division, resulting in the subsequent creation of Lenovo. This move could take effect as early as by the end of this year. This is one of the most extreme makeovers in the company's 72-year history. It is sought to increase the company's long-term competitiveness against rival IBM.
It is not known if the decision to spin off the PC division will affect any of the 300,000 jobs HP maintains worldwide. HP's PC division (that sells desktop PCs, notebooks, and netbooks and related support services), is its biggest revenue generator, but also it's least profitable division. Whatever the reasoning behind this, the decision is a 180 degree turn from last decade, when HP spent no less than US $24 billion to acquire Compaq Computer, on its road to become the biggest PC vendor.
Source:
MSNBC
It is not known if the decision to spin off the PC division will affect any of the 300,000 jobs HP maintains worldwide. HP's PC division (that sells desktop PCs, notebooks, and netbooks and related support services), is its biggest revenue generator, but also it's least profitable division. Whatever the reasoning behind this, the decision is a 180 degree turn from last decade, when HP spent no less than US $24 billion to acquire Compaq Computer, on its road to become the biggest PC vendor.
35 Comments on HP Kills TouchPad, Could Spin Off PC Business
I always hated HP machines anyway. A damn nightmare to work on, unlike Dells.
I dont blame them for providing more Intel based systems, only at the absolute cheapest rung AMD consistently outperform against Intel in price/perf. The rest is very price dependent, with AMD losing their advantage the higher it goes.
In order to remove a drive you'd have to remove the side panel of the enclosure, release the plastic latch, unplug the data and power cables and slide the drive out. It couldn't have been any easier, this is how most modern enclosures place HDDs.
Now HP's model names leave something to be desired ;)
Anyway, if they stop or not making pc's, that does not change the DEMAND, thus, as a principle, AMD should not lose sales, but only a big customer. Other customers will crow proportionally.
;)
EDIT: Not only did the iPad and iPad wannabes kill it off, but there are so many tablets out there is no room for development anymore.
if that's the case then why not, in networking, servers, and printers/scanners HP is still doing quite well.
And thats what makes me think that HP wont do it.
having been established for so long, they have a HUGE market share.
and it has to be making them pretty good money otherwise they would have scaled back their operations years and years ago. but they have just carried on growing and growing over the years.
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When i walk to a shop called PCWorld here in the UK. the first thing that i notice is that HP machines make up about 80-90% of the machines on display (excluding laptops and pads) the rest are Acer or Dell's and the occasional Alienware.
no matter what branch i walk into thats always the case.
they could spinoff, but only if someone paid them a serious amount of money