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Samsung May Be Gearing Up to Purchase HP's PC Division

By - Source: DigiTimes | B 28 comments

Sources claim that Samsung may be gearing up to purchase HP's PC division, and is currently talking with major HP contractors to help fill the orders.

If insider reports are true, then Samsung Electronics may be gearing up to purchase HP's Personal Systems Group if the offer is brought to the table.

According to "upstream vendors" in the PC component industry, the Korea-based company invited Taiwan-based notebook makers (and top HP notebook contractors) Quanta Computer, Compal Electronics and Pegatron Technology to its headquarters in South Korea earlier this month "with a rather cautious attitude." Sources believe this meeting was an indication that Samsung might be preparing to expand its business with the acquisition of HP's Personal System Group.

If Samsung does indeed purchase HP's PC division, then it would outsource a small volume of orders to these specific players. Right now Samsung pumps out around 10 million laptops annually via its manufacturing plants in China, but that could increase to 50 to 60 million if the purchase of HP's PC division becomes official.

"The sources pointed that the Taiwan's notebook OEM industry's production efficiency and cost control is currently unmatched worldwide," Digitimes reports. "Therefore, if Samsung takes over HP's PC department, HP's over 40 million PC shipment volume will still need to depend on Taiwan OEMs. However, related suppliers of components such as panel, memory and battery may be affected as Samsung has a rather strong vertical integration supply chain."

Without commenting on the report, Quanta Computer told the paper that if Samsung takes over HP's 40 million units of PC shipments in addition to its own 10 million, the company will thus be shipping 50-60 million units total in one year and may have difficulty filling all these orders. Samsung will definitely need to find OEM partner, the company said.

Quanta added that it's currently working on upcoming cloud computing and related products to increase its non-notebook business' contribution. It's also cranking out 20 million units for HP's current 2011 fiscal year along with Foxconn Electronics (Hon Hai Precision Industry) which is shipping 8 million units, Inventec (7 Million), Wistron (3 to 4 million) and Compal (2 million).

Inventec also wouldn't comment on the report, but pointed out that HP's sudden announcement to part with its PC business seems more like an attempt to test the market's reaction, and the spin-off may depend on the results. Either way, Inventec won't be hurt by the outcome as it mainly produces HP's enterprise-class notebooks.

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Top Comments
  • 16 Hide
    thomaseron , August 24, 2011 5:36 AM
    Well, of the companies out there, I think that I'd prefer if Samsung made the purchase, if HP is selling.
Other Comments
  • 16 Hide
    thomaseron , August 24, 2011 5:36 AM
    Well, of the companies out there, I think that I'd prefer if Samsung made the purchase, if HP is selling.
  • 3 Hide
    ikyung , August 24, 2011 5:46 AM
    Agreed, I have never really seen any negative reports about Samsung and own/have owned many Samsung products. Very reliable brand.
  • 0 Hide
    JOSHSKORN , August 24, 2011 5:53 AM
    My mother has had 2 HP laptops. Very reliable. Me on the other hand, I purchased a Samsung HDD for my computer (1TB) and so far I love it! I heard Seagate bought out Samsung's HDD division though.
  • 1 Hide
    killerclick , August 24, 2011 6:01 AM
    Charlie Demerjian at Semiaccurate.com called it 5 days ago.
  • 3 Hide
    map01ch , August 24, 2011 6:07 AM
    Really? Samung is going to buy HP's PC Division? Wow... If that is true, what is Samsung's market share going to be like? Damn... I cannot imagine that....
  • 7 Hide
    shqtth , August 24, 2011 6:08 AM
    Samsung is a good innovative company. I like Samsung.
  • 5 Hide
    selloutjoe , August 24, 2011 6:34 AM
    That should piss off Jobs&Apple big time. Unlike the current HP management,(last 10yrs), Samsung have studied alternate OS's and known consumers' markets well. MS and Apple may have some serious competition...... in the past Sony ruled the consumer market place, .....
  • 4 Hide
    Anonymous , August 24, 2011 7:13 AM
    Doesn't surprise me that HP is getting out of the PC business. There quality has slipped so much it is unbelievable
  • 1 Hide
    ikyung , August 24, 2011 7:14 AM
    selloutjoeThat should piss off Jobs&Apple big time. Unlike the current HP management,(last 10yrs), Samsung have studied alternate OS's and known consumers' markets well. MS and Apple may have some serious competition...... in the past Sony ruled the consumer market place, .....

    Yeah. Bada, Samsung's own mobile OS. Soon it will be Bada vs iOS.
  • 1 Hide
    apache_lives , August 24, 2011 7:37 AM
    HP/Compaq as a company was poor at best for quality/design

    being a repairer of there products iv see it all, there desktops suffer from blown caps still (this day and age - come on)

    there notebooks (aside from the recent nvidia gpu failures) and the internal designs are poor from a thermal design perspective - 99% of them direct airflow down with a 30-45º angle stopping most airflow, and no normal person can service the things

    i say good riddance to there rubbish products, i sure as hell would never buy one, never have and never will.
  • 1 Hide
    nicodemus_mm , August 24, 2011 8:31 AM
    apache_livesHP/Compaq as a company was poor at best for quality/designbeing a repairer of there products iv see it all, there desktops suffer from blown caps still (this day and age - come on)there notebooks (aside from the recent nvidia gpu failures) and the internal designs are poor from a thermal design perspective - 99% of them direct airflow down with a 30-45º angle stopping most airflow, and no normal person can service the thingsi say good riddance to there rubbish products, i sure as hell would never buy one, never have and never will.


    I've not worked on many HP machines, but I do service Dell in my region. The issue with blown caps may be a supplier issue as Dell has had issues with recent Foxconn produced boards in some of its Optiplex line. I don't mean the Opti 270/280, but newer 780+. Out of 100ish machines at one location I've swapped 60+ boards with blown caps.... all stamped Foxconn.

    ~ Nicodemus

  • -3 Hide
    Anonymous , August 24, 2011 10:14 AM
    I've worked on 1000's of second-hand Dells and HP. apache_lives...seriously? HP's are the most reliable brand out there. Dell is a joke compared.
  • 4 Hide
    Anonymous , August 24, 2011 10:49 AM
    I myself worked at HP Denmark for a year.

    From consumer products: The Dv- series were bad, very poorly made; but the HDX- and Envy-Series were and are a great innovation of HP.

    Business products: I loved the previous generation of the Elitebook. I get why the new line is so enormous and heavy, but I do not think that this is the innovation that HP should seek in the business line, they seem to be moving in the wrong direction.

    This is just my oppinion, I do not actually know how well this new line sells; but I hope that if Samsung buys the PC devision, that they will do something outstanding with what they've got.
  • 0 Hide
    audioee , August 24, 2011 4:18 PM
    I think this good be very good for both sides. Samsung gets a computer brand with a long history and the current HP employees associated with the computer side of their business can breath a sigh of relief for the time being. This could also breath some new life into the Wintel side of the PC business.
  • 0 Hide
    southernshark , August 24, 2011 4:28 PM
    audioeeI think this good be very good for both sides. Samsung gets a computer brand with a long history and the current HP employees associated with the computer side of their business can breath a sigh of relief for the time being. This could also breath some new life into the Wintel side of the PC business.


    Samsung won't keep the brand. Just like Lenova dropped the IBM brand, Samsung will turn all the PCs it builds into Samsung branded PCs. This is just about buying HPs distributor network.
  • 0 Hide
    kal326 , August 24, 2011 5:06 PM
    ikyungAgreed, I have never really seen any negative reports about Samsung and own/have owned many Samsung products. Very reliable brand.

    My only issue with a Samsung product has been the Samsung Moment phone and my unfortunate timing in jumping ship to Sprint and Android. At the time it was that or the HTC Hero. I wanted a physical keyboard so I went with the Moment, huge mistake. Support dropped off quickly for new Android releases and they had plenty of download and OTA updates to fix problems with GPS, Airplane mode, the list goes on and on. My wife currently still uses one, I gave up on mine and bought an EVO 4G off contract.
  • 0 Hide
    RazberyBandit , August 24, 2011 5:36 PM
    If Samsung really wants to do this, I say go for it. They should definitely do it soon, though. With HP's lack of concern that their PC brands (both HP and Compaq) are headed down the same path of a previous industry giant and rival, Packard Bell, there may not be much of HP's PC-building infrastructure left to salvage if they wait too long.
  • 0 Hide
    COLGeek , August 24, 2011 8:02 PM
    When Lenovo bought the IBM PC business, many predicted death, doom, and destruction. So far they have done well.

    Samsung makes good stuff....period. I would expect to see such a purchase do good things for the OEM (pre-built) PC market and offer quality products to consumers.
  • 0 Hide
    TheDuke , August 24, 2011 8:29 PM
    I like this. It could turn out real well. Samsung products are generally really well done.
  • 0 Hide
    thegame8019 , August 24, 2011 8:47 PM
    I'd much rather see samsung buy it than some of the other manufacturers. Samsung makes some really good product and hopefully if they do this they will end the era of HP's and Compaqs being a nuesance to work on at times. They are hands the the PC brands that pops up the most issues to work around when trying to repair. But when they work right they aren't that bad I suppose.
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