Whitman Keeps PCs, But Can She Save HP? |
| TheStreet.com - Oct 28, 2011 |
New HP(HPQ_) CEO Meg Whitman's decision to keep the company's PC division has won plaudits on Wall Street, although analysts warn that there's plenty to do before the tech giant truly gets back on track.
"This is the first major decision that new CEO Meg Whitman has made and, we believe, the correct one," explained Shaw Wu, an analyst at Sterne Agee, in a note. "The reality is that the PC business is an essential part of HP in running its overall business."
HP's Personal Systems Group (PSG) accounts for around a third of the company's total revenue and, within enterprises, serves as a vital 'foot in the door', for the tech giant to sell additional technology. PCs are such a core part of HP's identity that getting rid of PSG would have been like disemboweling the company.
The possible PC spinoff thus sent HP's shares into a tailspin when it was announced by former CEO Leo Apotheker earlier this year, and contributed greatly to his ouster last month.
Sure, margins may be under pressure in the PC market, but the risk of extracting one of HP's vital organs was way too dangerous.
Read Full Article from TheStreet.com
- Posted: 2011-10-28 13:30:19
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
