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HP to merge PC and printer businesses?

Restructuring planned, but no final decision

HP is considering rolling its PC product group into its printer division, according to The Wall Street Journal.

The combined product group would be headed by Todd Bradley, executive vice president of HP's PC product group, the Personal Systems Group (PSG), the Journal reported, citing people familiar with the situation.

However, a final decision on whether or not to move ahead with the proposed restructuring had yet to be made, the Journal reported.

A spokeswoman for HP's Personal Systems Group in Singapore did not immediately return a voice mall seeking comment on the reported restructuring of the two product groups.

In recent years, PSG outperformed HP's Imaging and Printing Group. Between 2006 and 2008, PSG revenues rose 45 percent to $42.3 billion from $29.2 billion. During the same period, IPG revenues grew 10 percent to $29.4 billion from $26.8 billion.

This year, both PSG and IPG have been hit hard by the weak economy. PSG sales fell 19 percent during the first nine months of HP's current fiscal year to $25.4 billion, while IPG sales dropped 20 percent, to $17.6 billion.

Despite the difficult economic environment, HP has managed to hold onto its position as the world's biggest PC maker.


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