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