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  (Source: EMI Films )
Company finally listens to investors, analysts

After taking a shellacking from investors and analysts, Hewlett-Packard Comp.'s (HPQ) board finally relented and has reversed its plans to chop up the company.  Based on the sentiments of the investors and the tech community Thursday's announcement might has well have read, "HP decides not to chop off limbs."

New CEO Meg Whitman indicated that her firm realized the obvious.  She comments, "HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees.  HP is committed to PSG, and together we are stronger."

The announcement comes after the board initially tried to placate investors by making a scapegoat out of German CEO Léo Apotheker.  To be fair, Mr. Apotheker was probably a bad fit in the first place particularly considering he was just fired by German business software giant SAP AG (ETR:SAP).  However, the decision to kill webOS and spin off the PC business clearly came from the board, as the new CEO Meg Whitman was initially encouraged to continue these plans.

HP's former board chairman Tom Perkins likened those plans to corporate suicide.

Well investors can sleep a bit more soundly now that the spinoff of the world's largest PC seller has been terminated. There is still bad news for webOS fans though; HP hasn't given any indication it's willing to back off of that unpopular decision -- not yet at least.

Source: HP



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RE: Cooler heads have prevailed.
By spread on 10/27/2011 9:14:25 PM , Rating: 2
Their printers and professional PCs and laptops and dreamcolir monitors are wonderful but their consumer line isn't so good. It's very affordable and spec wise fairly decent which is why they sell so much of it.


RE: Cooler heads have prevailed.
By wordsworm on 10/28/2011 8:16:39 PM , Rating: 2
Dude, I bought a laptop from MSI that was a complete waste of money. It gets so hot just from turning it on, and three visits to their shop didn't fix the problem. I bought an HP and it works. I know the CPUs and other crap is going to make a big difference, but also a difference between a good brand and a bad brand is that a good brand doesn't make a crap product and builds a reputation from it. HP has done that in my opinion. Customers often have a long memory: I will never buy another MSI product. I trust HP, and they're not expensive.


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