HP may spin off its PSG Division
HP will finally decide by October end whether to spin off its PSG division or keep it as one. Antoine Barre, vice president, Personal System Group, Middle East, Mediterranean & Africa, said that the board of directors is working on the perfect solution for HP PSG. The decision will help HP PSG to continue growing and become more profitable.
Antoine Barre said, "HP has been very successful in growing the PC business over the past few years, reaching the number one position, with over 20% market share worldwide, the most profitable business model across the PC domain, so we are in a position of strength. The question came up, that in looking to improve our position, should we continue to work as one company, or should we look at spinning off the PSG business?"
Barre also strongly rejected the comparison of HP PSG with IBM PC business saying that the former has been growing in revenue and even its market share has increased. He also said that even though the HP TouchPad was a failure, HP has still not given up its hope on the tablet frontier.
He further said that, "We have not backed out of the tablet segment; we have backed out of webOS tablet hardware. The webOS tablet hardware that we came out with, did not sell to our expectations. We made the decision that rather than continue with a solution that was not appealing enough to customers, we wanted to review our strategy, and build a new tablet roadmap."
Right now, HP is working on a new tablet, and is hunting for the perfect operating system for the future generation tablet. Windows 8, which is a very tablet-focused operating system, is also being considered by HP for their future tablet. But right now, nothing has been finalized yet.
Barre is confident that PSG alone can bring out innovative products, saying that the current PC division is lined with many innovations like, alliance of Beats Audio processor, TouchSmart desktops, and quad-core speakers. This is proof that HP has the capability to lead the market.
Barre said that HP, which has been shipping off their notebooks with only a single drive, makes up only 5-7% of shipments. So, HP doesn't expect to see much movement in the ultrabook sector and hopes for around 20% of shipments by end of 2012.
Barre also said that HP is increasing its support to channel partners, and the ongoing market campaign 'Everybody On' is open for all channel partners. HP will continue collaborating with them on events and marketing.