Hewlett Packard Transformation Plans
On the heels of their Third Quarter 2011 results, Hewlett Packard announced details on their company transformation vision in press releases issued the same day. HP is looking to sell or spin off their PC group (Personal Systems Group), getting out of the desktop and laptop business. As well, they will discontinue making their TouchPad and webOS phones. HP plans to focus instead on software, the cloud, and solutions for enterprise, commercial and government markets.
In a Press Release issued yesterday, HP President and CEO Leo Apotheker gave some background on the decision to get out of the PC market, saying "In March we outlined a strategy for HP, built on cloud, solutions and software to address the changing requirements of our customers, shaped heavily by secular market trends that are redefining how technology is consumed and deployed. Since then, we have observed the acceleration of these market trends, which has led us to evaluate additional steps to transform HP to meet emerging opportunities".
Hewlett Packard's Personal Systems Group has recently been the world's largest seller of laptop and desktop PCs, according to market research firm IDC. Where will this transformation take HP? Stay tuned.