Print 5 comment(s) - last by BigSlick.. on Sep 18 at 5:43 AM

An executive with the Personal Systems Group tells DailyTech that the company may retain the HP logo and brand name in the case of a spin-off.
HP says tablets, smartphones will go in spin-off, but not consumer printers; the PSG may retain brand

At IDF 2011, we attended an early morning session from Hewlett-Packard, Comp. (HPQ).  The presentation was primarily aimed at showing off HP's new attractive enterprise-targeted displays.  Unsurprisingly, though, the conversation soon veered into a discussion about the pending spin-off of the company's personal computer and consumer electronics division.

HP's Jeff Wood, global marketing VP with HP's Commercial Solutions Business Unit -- a part of the Personal System Group -- discussed the spinoff.  He admits that he is still "as they say, very deep in the woods [on the spin-off]."

He describes, "We hope to get this decision made quickly. Our goal is to get it done before the end of the calendar season, so we can get back to our day jobs. As you might imagine most of our executive team has actually been on the road reassuring our customers that we're here to stay."

The PSG executive provided some interesting details and commented that overall the move seemed "worth it" from a business perspective, while offering the disclaimer that the company hadn't made any final decision yet, remarking, "That's not cast in stone at this point, there is an opportunity to continue one with HP long term."

If the Personal Systems Group (PSG) is spun off, exactly what products would go with it?  Well, according to Mr. Wood, HP's enterprise workstations, monitors, consumer desktops, and consumer notebooks would all be included in the spinoff.  Tablets and smartphones are under the auspice of the PSG as well.

Consumer printers would not be included in the spinoff (nor would commercial printers.  These products are under the auspice of HP's Imaging and Printing Group (IPG) -- which will be retained under the current plan.

In other words the "new" HP will not make desktops/workstations/notebooks (presumably), but will continue to make commercial printers, servers, business software, etc.  And under the new plan HP will continue to offer consumer solutions, but just in a handful of business niches like printers. 

We asked Mr. Wood about branding of the spin-off's products.  He tells us, "That's something that we're investigating right now. If you go with retain an HP logo or is there a new brand? We're still at that part of the investigation. If we do get spun out we're going to have the spirit of a startup, but the reliability and the quality and retail solutions of an HP company."

As for the troubled webOS platform finding new life on desktop, something HP talked about long ago, he comments, "I think something that remains be seen, that's something we'll have to investigate as we move on, if we spin off."

Mr. Wood also tells us that there may be a close OEM relationship between the two resulting companies.

If HP's controversial spin-off goes ahead, the resulting company would presumably be the global and U.S. leader in personal computer sales.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

By rocketbuddha on 9/14/2011 9:42:08 PM , Rating: 5
WTF is HP thinking?
Let us see.

Spin-off the PSG without the most profit making subdivisions (Printing solutions, Servers).
Which idiot OEM will buy it?

While IBM had some luck with Lenovo in 2004 (Lenovo was a virtual unknown then other than a good amount of Chinese Govt indirectly backed money). Nowadays with Asus marketing its laptops in Bestbuy, MSI having a on-line laptop presence who will like to go behind a company that feels convenient to let go of a division that they are the number 1 in the world.

In case of IBM during the sale to Lenovo
a) They were not even #5 in PCs (desktops & notebooks)
b) Thinkpad had a rugged and industrious design well liked for durability inspite of not being very easy on the eyes.
c) IBM had a dwindling home PC presence that Lenovo was able to improve upon.
d) Lenovo atleast had its home market as well as other Asian markets to fall back on.

How many IBM shops went with Lenovo after the sell off?

Initially after Hurd (who stabilized HP BTW, sadly @ the backs of employees and cost-cuting) was removed I thought Gee! If only they had a guy 80% of his cadre with better ethics and understanding of the HP culture became CEO. Then

Leo A comes and makes all noises about "Re-invigorating the HP DNA. Not focus on cost-cutting alone, focus on long term prospects" blah!blah! All he and the f***ing stupid board can come up with is Old stale wine in a 2011 bottle.

Then suddenly having a Epiphany one fine day, that WebOS devices will cease to exist and heavily discount causing huge disruptions in the market place. Pricing it to absurd levels that caused it to be sold like hot cakes inspite of every one buying the product knowing that it is basically a EOL product as far as HP is concerned.

What does it display when the largest PC company in the world makes decisions like a drunken teen in Mardi Gras.

By drycrust3 on 9/15/2011 3:20:03 AM , Rating: 3
I can't see why they feel printers are so special that they should keep them and not flog it off with the rest of the gold and silver. This is just a dead end. They will end up with a printer division and no one wanting to buy them.
It is expected that in the next 4 years more than half the people accessing the internet will do it via a mobile device (i.e. hundreds of millions of smartphones and notebooks and tablets), and what is HP doing to cater to those people? Letting companies like Samsung, LG, HTC, and Huawei be the companies that will be the brand names people trust.
I really hope the HP shareholders can force the company to hold a meeting soon to discuss these issues because otherwise there won't be much point.

By BigSlick on 9/18/2011 5:43:38 AM , Rating: 2
I can't see why they feel printers are so special that they should keep them and not flog it off with the rest of the gold and silver.

When was the last time you bought ink or toner for your printer at home or in your office, and how much did it cost? Yeah, that's why their keeping the printing and imaging division, continuous repeat business. Printing is Hp's gold and silver and platinum.

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki