SAN FRANCISCO — Hewlett-Packard Co. has decided against spinning off or selling its personal-computer division - a plan first brought to light in August by Leo Apotheker, the technology conglomerate’s former chief executive officer.
Hewlett-Packard said Thursday that it reached its decision after evaluating the strategic, financial and operational effects of spinning off the business unit, which is the world’s biggest manufacturer of desktop and notebook computers for consumers and businesses.
The unit supplies a third of Hewlett-Packard’s revenue, and personal computers arean area where the company is a market leader. But it is Hewlett-Packard’s least profitable division, and its disposal was meant to be part of Apotheker’s plan to transform the Silicon Valley stalwart into a twin of East Coast rival IBM Corp.: a company focused on businesses, rather than both businesses and consumers.
Hewlett-Packard’s new chief executive officer, Meg Whitman, said that keeping the unit within the company is right for Hewlett-Packard, its customers, shareholders and business partners.
Business, Pages 28 on 10/28/2011