HP Marketing PSG as Separate Business

By Kevin Parrish
published

HP is launching a series of ads marketing its PC division as a separate entity.

Wednesday HP revealed in an official company blog that it's launching a series of ads marketing its Personal Systems Group (PSG) as a spin-off company. According to the company, a new spin-off organization would be a $40 billion business with the agility and freedom of a start-up.

"Our preferred course is to spin off our PC business into a separate company, creating a more agile organization to help us better anticipate change and quickly respond to customers," reads the latest ad. "This will give us the freedom to deliver the best new products at the best prices faster than we ever have before."

Over on a website dedicated to the cause, HP executive VP Todd Bradley says that it's time to think like a startup again. "It's time to be nimble and revolutionary," he states. "It's time again for world-changing innovation. And so, it's time we realized we're at a crossroads in an evolving HP. But don't misunderstand: We – the same great folks who make HP PCs today – will make them tomorrow. We will continue to build on our legacy creating reliable, stylish, and high-performance PCs to improve your personal and professional life."

Just recently Bradley dismissed rumors about HP selling off its PC business, indicating that the numbers behind such a strategy didn't make sense. "My intention would be to lead it through this transaction ... and if it's a standalone public company, to lead that," he said

A few weeks ago during a Q3 conference call, HP CEO Leo Apotheker admitted tablets pushed HP into considering the spin-off PC business, that the PSG needs the flexibility to make its own decisions. "There is a clear movement in the consumer PC space," Apotheker said. "The tablet effect is real."

Kevin Parrish
11 Comments Comment from the forums
  • GreaseMonkey_62
    Is it just me or does it sound like they missed some planning meetings when getting up this whole thing?
    Reply
  • sonofliberty08
    so all hp pc will be oem in china in the future ?
    Reply
  • captaincharisma
    isonofliberty08so all hp pc will be oem in china in the future ?
    hopefully they will just sell them in china. I'm tired of having to fix crappy HP computers
    Reply
  • legacy7955
    Wait, I just said exactly what these HP reps said now weeks ago, before they even came up with this strategy. They could have hired me for a LOT less, and I'm an US citizen.
    Reply
  • legacy7955
    That being said it is the best avenue for HP PC group to go. I think the division will be much better off.

    They need to approach things in a more dynamic way like during the late 90s. Streamline their product line up too offer better value too. Drop the very cheapest offerings to concentrate on mid range and upper range products, with better quality, heck how about a couple of gaming machines too. Bring back the Voodoo name.

    Note to HP PSG...you know maybe you need to think about moving your manufacturing back to the USA. If ZT Systems can do what they are doing at the price they offer you CERTAINLY can as well and probably do a better job of it.
    Most consumers in the USA think of HP as a "US manufacturer" which it had been for decades until recently. You need to become that once again. Apple wants us to THINK they are a primarily US concern but they are NOT. T
    Reply
  • freggo
    Nike, Apple, HP, Dell....

    Big name American 'employers'; not !

    They design stuff here but don't actually manufacture in the US. They simply outsource the dirty business of 'making' stuff overseas. No wonder we have such a high unemployment rate.
    And all the overseas manufacturing can be a serious political and security problem down the road. Can't get into a military conflict with the guys who make the hardware to operate your military :-)
    Reply
  • user_ace
    Dear HP,

    There's no need to pretend like you know what the hell you are doing. Just admit that you screwed up WebOS, and then betrayed your loyal customers by implying that you were exiting the PC business. Accept the fact that you are clueless as to what consumers want, and that your customer base is now flocking to Dell and Lenovo and there is nothing you can do about it.

    Sincerely,
    Angry Ex-HP Customer
    Reply
  • someonewhoknowsalittle
    You'd think that the major shareholders and members of the board of directors of HP would request that Leo have a full mental exam including psychiatric and psychological testing and assessments. The guy instead of being a visionary may just have a few screws loose. Yes, the HP TouchPad running WebOS might not have had a sufficiently large user base to attract enough talented App creators to write enough useful and attractive apps for that tablet and yes the TouchPad was slow and jerky playing videos. So, HP could have just transitioned to an Android based tablet like other companies. Tablets are a growing field. It seems nuts for HP to abandon it. The whole decision to buy Palm didn't make any sense. Palm was dying. Their Palm phones' displays and keyboards were too small and they had a "cheap" plastic feel to them. Their previous HP Microsoft based phones were a joke. People bought HP printers and computers together before. Will they if HP spins them off? Are they going to allow Leo to drive the whole company into the ground and lose more billions of dollars of net worth/wealth only to find out later that he is a manic depressive or a schizophrenic or otherwise impaired? What kind of company abandons a humongous market when they're # 1 in sales of it worldwide and still reasonably profitable in it? They have a brand name that's priceless and they want to throw it away. Isn't that crazy?
    Reply
  • shqtth
    Someone has been smoking crack?? HP ??
    Reply
  • shqtth
    After they sell all there assets off, the only way they can make money is by pimping their ceo. Any takers? it will be a jerry springer special !
    Reply