HP reverses course, will retain its PC division


— 4:14 PM on October 27, 2011

HP is keeping its PC business after all. Some two months after confirming that it was considering whether to spin off or sell the Personal Systems Group responsible for its PCs, HP has decided to keep the unit within the company. After vowing to stay the course last month, newly minted CEO Meg Whitman explains the reversal:

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.

The press release goes on to say that the Personal Systems Group's contribution to HP's "solutions portfolio and overall brand value" would be too costly to recreate with the unit divorced from the company. Tipping its hand by confirming its interest in selling the PC division didn't exactly put HP in a good bargaining position with potential suitors. Shareholders and the tech press weren't enthusiastic about the idea, which surely cost former CEO Leo Apotheker his job.

WebOS isn't mentioned in the press release, so it's unclear whether its future with HP can be salvaged. Earlier this year, Apotheker wanted to "make better use" of WebOS by installing it on each and every one of HP's PCs.

   
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