HP officially reverses course, won't spin off PC division | webOS Nation
 
 

HP officially reverses course, won't spin off PC division 56

by Derek Kessler Thu, 27 Oct 2011 4:27 pm EDT

It was inevitable, following the announcement of HP’s plans to split in two, the subsequent plummeting of the stock price, and the eventual ouster of CEO Leo Apotheker, and today HP made it official: they will not be spinning off or selling the PC-producing Personal Systems Group. It was all but assured to happen, with new CEO Meg Whitman taking on the task of reevaluating Apotheker’s strategy. What’s not yet assured, and not mentioned in HP’s press release, is the future of webOS. Said Whitman, “It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees.” HP will be holding a press call at 5PM Eastern time - we'll let you know if anything relevant comes out of that.

Full press release after the break.

HP to Keep PC Division

Continued combination of HP and its Personal Systems Group expected to deliver greater customer and shareholder value

PALO ALTO, Calif., Oct. 27, 2011

HP today announced that it has completed its evaluation of strategic alternatives for its Personal Systems Group (PSG) and has decided the unit will remain part of the company.

“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 Meg Whitman, HP president and chief executive officer. “HP is committed to PSG, and together we are stronger.”

The strategic review involved subject matter experts from across the businesses and functions. The data-driven evaluation revealed the depth of the integration that has occurred across key operations such as supply chain, IT and procurement. It also detailed the significant extent to which PSG contributes to HP’s solutions portfolio and overall brand value. Finally, it also showed that the cost to recreate these in a standalone company outweighed any benefits of separation.

The outcome of this exercise reaffirms HP’s model and the value for its customers and shareholders. PSG is a key component of HP’s strategy to deliver higher value, lasting relationships with consumers, small- and medium-sized businesses and enterprise customers. The HP board of directors is confident that PSG can drive profitable growth as part of the larger entity and accelerate solutions from other parts of HP’s business.

PSG has a history of innovation and technological leadership as well as an established record of industry-leading profitability. It is the No. 1 manufacturer of personal computers in the world with revenues totaling $40.7 billion for fiscal year 2010.

“As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry’s broadest portfolio of PCs, workstations and more,” said Todd Bradley, executive vice president, Personal Systems Group, HP. “We intend to make the leading PC business in the world even better.”

More information is available at www.hp.com/investor/PSG-Decision.

Source: HP

56 Comments

Thank goodness Meg brought some common sense back to HP! Now to restart Web OS production with UPDATED hardware that doesn't run like @$$! (That being said, the new 3.0.4 update is HUGE in the speed/performance department) Loving my Touchpad, but hoping for the Touchpad 2 and/or Touchpad Go!

Easy decision, but I'll give some kudos and admit Meg's got some balls.

im think kerris knows something about webOS, maybe thats why he left, either its gonna be no more or its been sold

Kerris never knew anything about webOS, that's why he was so bad.

do you even know Kerris and what he did. I see trolling around both sites. Whatever bug you have that crawled up inside you, relax, unclench, and let it go.

If I was in a situation like Kerris or any employee working on WebOS or its hardware, I would have at least attempted to bail regardless of this decision. Even if it is brought back, it is know throughout the company as a red mark on the books and companies do not like red ink.

It'll be interesting to see where they go owning both this and Autonomy (which cost them the vast majority of their cash reserves).

I'm holding my breath. I think Kerris would have stayed if there was going to be an HP webOS.

"portfolio of PCs, workstations and more"

No mention of tablets or smartphones.

HP/Palm smartphones/tablets have always been part of "and more".

Not this time. They saaid any comments about WebOS were strictly in terms of software, not hardware or consumer products.

Windows 8 is their horse.

I don't believe in HP any more, just hope they would sell webOS to a more reliable company (with good marketing) and continue their Windows 8 tablet dream.

"C**T, what happened to the link bar above PreCentral?"

"I believe it is the work of those Pr*** over at Android Central."

I wonder if they will have the Touchpad 2 ready to show at CES 2012 or if they will wait until February to hold their own event.

They literally killed TP after one month and sold them for 1/3rd the cost of making them. They totally destroyed their credibility to market WebOS in a tablet format. They killed every WebOS product there ever was. They have absolutely destroyed the WebOS brand, it's the New Jersey of mobile products.

What pray tell, has happened since August, to make you think a) the market will welcome another WebOS product b) That TP2 can become the first successful 7" tablet in a market that has totally **** on tablets smaller than Ipad?

Are you still waiting for the Beatles to get back together?

I wonder how long that graphic has been ready for. It's great haha. I'm holding onto hope for good news about webOS on their conference call.

Can't say we know anything's for sure, but at a bare minimum -- they could certainly showcase the Touchpad Go with some minor refinements (around performance upgrades, functionality, and user experience) and I am sure it would be well received. In a way they are already set for CES 2012.

I'll guess this is more or less for servers and workstations. I do not think we'll ever see a Pre 4 and TouchPad 2, but we can dream!
And wow - what level of mismanagement the past few months has been. As a stock holder, I'm not happy and not impressed, but glad to see HP might be back on track.

My guess is this won't reverse their decision about webOS for mobile devices. They still won't be building hardware for it. And still no one wants to lease it. HP selling it was never a real option btw.

I still hate HP.

Yes I know that is childish, but that's honestly how I feel right now.

Problem is... people will buy an HP computer, because you'd expect it will run Windows or Linux just fine. It's really just a collection of hardware.

WebOS, on the other hand, is an operating system, and many people just can't be bothered to deal with fringe OSes. (Case in point, the stranglehold that Windows and OS X have on the current PC market.)

I think Meg Whitman takes a look at what it would take to make WebOS successful, says "No thanks" and moves on with life.

Precisely! Plus their long-standing relationship with MS, it's no wonder they were already in talks about a Win8 tablet DURING the launch of our fave OS' TPad.

Again I say, don't be shocked that the 5pm announcement includes either no info at all on webOS and it's buried for all eternity (keeping the patents) or a sale 'in the works and to stay tuned.'

We should know in about 10 minutes what will happen to webOS. I hope the reversal of the PSG spin-off signals a complete reversal of all of the foolish plans under Apotheker.

So they went through a couple of months of turmoil and uncertainty for... what? Just for fun?

It does take balls to admit you're wrong, but come on HP, anyone with half a brain could see that was the wrong decision.

Well, they relieved themselves of a lot of shareholders and their cash reserves.

Oh, wait. That is bad, not good.

Hmmm...

I don't think a single carrier in the US would support a webOS device from HP. I'm guessing they would from a Samsung, HTC ect., but HP has burned carriers, especially AT&T.

I hope they sell.

This brings hopes for many of us! lets hope that WebOS get back to life!

Now the two ladies the CEO and CFO ( I have a very low opinion of CFO) should keep the webOS.

The CFO is saying that it takes additional 1.5 billion to just spin off and stand up an independent company. So why not suck the webOS and start working on phones and tablets on smaller scale.

Maybe a dual boot WebOS/Win8 TP. Can only dream.

WE NEED TO BE IN THE TABLET BUSINESS WITH WINDOWS 8.

SUCKS.

STILL HOLD on webOS

Only a hold on the software. The hardware is dead, dead, dead....still. That's what they said when asked for clarification.

this just strengths the MS relationship. Next round of tablets from HP will be in late 2012 or 2013 running Windows 8 and geared towards the enterprise, not consumer.

They just confirmed that their tablet plans are with Windows 8 - BY NAME - and that is where they want to take another shot at the tablet market When asked about WebOS, they said they're evaluating what they'll do with the software in the next couple of months.

They will NOT make more hardware for WebOS.

Two months? That's way too long in the mobile game. Sure sounds like they have absolutely zero buyers :(

BBC is saying "PC and tablets":

"Hewlett Packard will now keep its PC and tablet arm"

http://www.bbc.co.uk/news/business-15487317

But no idea where they got the tablet line from...

Because they just confirmed they are going all-in with Windows 8 tablets.

We've heard that one before, lol!

Of course if they can sell them at a reasonable price with some apps and a good browser, they will sell like hotcakes, as they now know from their "failed experiment". Only this time they won't need a software team, just hardware guys.

No alternatives this time, I'm afraid.

Its from Windows 8 , I am listening to the call. They are sold on Windows 8. And webOS thought to be used across other divisons ( read Printers and may be photo frames :-)

And they have no clue on it yet.

This sucks. It looks like Ruby is still the top lieutenant to Bradley.

And HP is completely sold on Windows 8 tablet.

Thank God, HP still has some brain cell left to make the right decision. Too bad, it still does not have the balls to compete in tablet and smartphone!

Has anyone in upper management in HP even used webOS in their daily lives?? I dont think any of them see the potential webOS has, let alone even care to see the potential... >:(

*pulling my touchpad out of the trash*

why not license or sell webOS to MS then and let them take the best of it and integrate with HP tablets running Windows 8.

As was said before, MS Win8 (like Apple iOS5 and the RIM Playbook) has already stolen...er..."borrowed" many of the compelling features of webOS.

License to Apple. They're the third party innovators of choice historically. Only their customers think they're inventive.

Todd Bradley was just asked about "ultramobile" strategy and whether that meant smartphones of the Windows sort.

His answer: Uh, I was talking about computers when I said "ultramobile".

So, no smartphones. Of any type.

webOS is dead. In the grand scheme of things HP bought Palm as an exercise machine to get them in better shape. Only the thing collects dust and sits in the corner. HP may eventually sell it in a yard sale or use parts from it to do some tinkering in the garage. They may even run on it from time to time but there is no real commitment.

The only value Palm/webOs has left is in the patents. My best guess: HP works out a deal with Apple that allows Apple to use some of the better features of webOS in iOS and in exchange HP will be able to continue their design "borrowing."

Review: The HP Envy Slim looks just like the MacBook Air.
Apple: We know. We showed them how to build it. Have you seen the new gesture area on the iPhone 4G?

so that's it then...webOS can't possibly survive another 2 months of this uncertainty. The only thing of value in 2 months .time will be the patents. It's the end.

I'm sure webOS is not relevant to their future strategy. I truly liked this OS and am sorry to see it slowly die off.

I placed an order to replace 2 of my family's 4 Pre minus's today and will replace the other 2 in the next few weeks. Will still have webOS via my TP. I don't trust or believe HP, nor can I wait longer for them.

Maybe now we'll see HP laptops at Walmart again. Our local Walmart hasn't had any for a while now. THAT is the kind of business HP is looking at I think, not webOS, unfortunately.

But my Verizon Pre3 runs great, so I am going to stay with it as long as I can!

This is worse than Netflix reversing the Qwikster product. Talk about public epic fails, this might be the biggest.

The whole thing reeks with Microsoft's hands. First Nokia dumps their exsisting OS for Win8 phones and at about the same time HP starts a radical departure from the course that seemed unshakeable.

MS made them an offer they could not refuse, now they have one of the largest phone makers in the world and one of the largest PC / Tablet maker to pawn their win8 .

This fiasco that has been the last 6 months is nothing but a smoke screen to hide their decision.

HP's handling of webOS has been so laughable you might be right.

Their first HP branded webOS product was the Veer, a niche phone at best, then they give us the Touchpad, a half-finished poorly reviewed tablet which shipped a million units to stores at iPad prices, in a market where no tablet aside from the iPad has sold more than a couple hundred thousand, and then the polished Pre 3 is held back for no reason till after doomsday. If it wasn't intentional it's pitiful.

definitely sounds like this was in the works either way I still around W my pp+ till 3/12

HP is officially spinning like a top. But that's better than driving off the cliff, as long as not spinning too long!