HP has made a U-turn on its decision to sell-off its PC and tablet division.
In August this year, the tech giant revealed it was discontinuing its tablet PC, the HP TouchPad and exploring the possible spin-off or sale of its Personal Systems Group (PSG). At the time, Paul Hunter, head of HP's Personal Systems Group (PSG) in UK and Ireland, said three options were being considered; spinning the division off, selling it or keeping it in the HP portfolio. Former CEO Leo Apotheker was behind the decision and the day after the announcement, HP shares fell by 20 percent.
However, his successor, Meg Whitman who was appointed in September after Apotheker’s departure, has conducted a strategic review into the group and believes HP would be better placed to keep it within the company.
"Keeping PSG within HP is right. HP objectively evaluated the strategic, financial and operational impact of spinning off PSG,” she said.
"HP is committed to PSG, and together we are stronger. 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 said its board of directors believe the division can contribute to the profitable growth of the firm as a whole and “accelerate solutions from other parts of HP’s business”.
“As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry’s broadest portfolio of PCs, workstations and more,” added Todd Bradley, executive vice president, Personal Systems Group, HP.
“We intend to make the leading PC business in the world even better.”