Thursday, August 18, 2011

HP to Spin Off PC Operations, Reposition WebOS

Hewlett-Packard Company, which has in recent years been among the leading suppliers of personal computers, is shifting gears, attempting to reposition as more of a software-oriented firm and also considering spinning off its PC operations. HP also plans to discontinue producing "WebOS" tablet devices and smart phones, after failing to get much traction for WebOS, part of its acquisition of Palm, that effort also an earlier effort to re-position the company for growth.

HP's Personal Systems Group includes smartphones, tablets, the WebOS operating system and PCs. The unit generates about $41 billion in revenue but accounts for only about 13 percent of profit.

Its low-margin but high-volume PC business had been seen as a spinoff candidate for a while, given intense competition and the slide in consumer PC demand driven by the advent of the tablet.

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