Business interests solely depend on the ability to understand the need of the hour and make the right decision there upon. HP is going through a similar task of dealing with a precise judgment. The talks on the sale of its PC manufacturing unit made some news. However, there was some indecision regarding the same, and a new deliberation to go with a spin-off is in the making. With the new CEO Meg Whitman at rescue, HP is busy calculating the greater implications of the move, meanwhile.
HP had bought PC making company Compaq almost ten years ago for a price of 25 billion dollars. The deal certainly facilitated HP a clear advantage and a leading market share ahead of its competitors for a long time. It is evident that HP computers sell at the fast rate of two units every second. Now, with the changing business scenarios and increasing trend of ultra-portable devices such as tablets and Ultrabooks, HP is feeling the heat to refurbish its strategies.
The speculation over a possible spin-off had put forward a pertinent question in front of technology onlookers as well as HP itself. The question was whether Compaq would be given a new lease of life by reinstating it to where it belonged or would it be sold-off? Putting an end to all speculations, HP told the journalists, gathered from around the world, during a tech press tour that it is taking into consideration a spin-off rather than a less likely sale.
If a spin-off takes place, anticipations are that Compaq would get back to station itself in its previous Houston campus from where it operated before the HP acquisition. At present, 70 per cent of HP PC processes run from Houston. All this could mean the return of the halcyon days for Compaq and a revival in its business.
The old-timers of Compaq would find the relocation idea (to Houston) very appealing, as it will seem, a sort of homecoming to say. Moreover, for HP, it would be a good time to focus exclusively on its laptop and tablet-related divisions.