HP board also reconsidering Personal Systems Group spin-off plans, skinny ties | webOS Nation
 
 

HP board also reconsidering Personal Systems Group spin-off plans, skinny ties

by Derek Kessler Wed, 21 Sep 2011 4:07 pm EDT

News leaked out this morning that HP’s Board of Directors was reconsidering their decision to have Leo Apotheker serve as the CEO of their company. Going oh so logically hand-in-hand with that thought is reconsidering the decisions that CEO has made, and Bloomberg is hearing that the HP board is doing just that.

Specifically, the board is said to be debating whether or not to follow through on Apotheker’s plans to lobotomize HP’s hardware division (minus printers) – the Personal Systems Group – off into a new company. Almost every time Apotheker has opened his mouth with a grand new plan for HP, the company’s stock value has suffered, and when the plan was announced to spin-off or sell the PSG, HPQ share price plummeted in a manner that only former Palm shareholders were familiar with. Today’s rumor-news brought quite the opposite reaction from the markets, with HP jumping as high as 10% before closing the day up over 6%. It doesn’t quite make up for all the damage Apotheker has wrought on HP and its valuation during his brief tenure, but it’s a start.

Of course, there’s still the question we’re pondering: will HP also restart webOS hardware development? The logic behind purchase Palm was that webOS would give HP a leg up in a decidedly mobile-oriented consumer future, and the logic behind the PSG spin-off was that the consumer PC market was due to stagnate with ever narrowing margins, while HP could reap enormous profits from enterprise services. PSG’s profits aren’t gone (yet), and Apple has proven that there’s a market for premium high-margin personal computers, and even more so for mobile devices. HP and the webOS Global Business unit can’t survive on $99 TouchPads, but the best path for relevancy and profit could very well be a dual-pronged mobile and enterprise approach (with enterprise services backing up the mobile hardware and hardware devices enabling further sales of the enterprise services).

Source: Bloomberg