HP Merges Printer and PC Businesses as Part of Major Restructuring Effort



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The core business unit for HP was, is, and will be sales and services of big iron. That is where all the real profit is for the company. When at HP back in the early 80's, I watched the company split into three camps, Test and Measurement (me)- now Agilent, the HP 3000 large computer servers, and the much smaller workstation (soon to be PCs). In the 90's came the revolutionary Laserjet and Thinkjet printers and the jump into PCs. The PC and printer market was pushed heavily by upper management with the ringing announcement that "HP will be number one in PCs!".
Agilent was split off, the server market is still very strong, the service side of managing companies enterprises is the most profitable (that is where IBM went), and the PC and printer market, now huge, has little profit to show for the hard work to build it up.
No, forget about the PC/laptop/tablet/printer side of HP, their core will remain in servers/service. Expect the PC/printer side to be spun off in the next couple of years.


Peanut Fox

HP merging their printer and PC business is a good move. Now as printers continue to become less and less important to end users they can have those floundering sales on their bottom line.

Sarcasm moment over, the one thing I can fault HP for as a company that I feel hurts them the most is that they never stick with a product line long enough to develop it as a quality brand in people's minds. They taste test, and the product usually never does well or only does so-so and they kill it off and you forget HP ever even tried anything. They really could have made their Voodoo line a high end boutique line of PCs but introduction of the desktop and mobile units didn't sale all that well so they killed it. Wasted all that marketing and R&D and have nothing to show for it. I don't understand a lot of why they decide to kill off the things they do and then turn around and waste any money developing things like WebOS.



So will their "all in one" peripherals start including a built-in PC? Stick a display on the front of one of those often quite wieldy devices, plug in a keyboard and mouse, and you have a single "box" that does everything. (And when it goes down, your entire PC experience grinds to a halt. )



Seems like an interesting merger of departments to me. From what I've seen over the years, HP has lost a good deal of public face time and just isn't the name it used to be. They still make quality products for the target audience. I guess the decline in popularity has affected their profits to the point of consolidation. The rise in tablet popularity has probably hurt HP as well, and I honestly can't think of a big name HP tablet on the market. I may be wrong, but it just seems like HP is on the decline over the past few years. Maybe this streamlining can help them stay afloat and bring in some innovation to the market.

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