Click pic to visit the HP Computer Museum

What with low-margins and declining sales in the move to mobile devices where Apple is eating everyone’s lunch, there will probably be more of this to come.

Bloomberg reports that multiple sources are indicating that HP will spin off its PC business to focus on enterprise services. As part of that change in focus, it will be acquiring the Cambridge, UK-based data analysis company Autonomy for about $10 billion, a healthy premium over the company’s current market cap.
Although HP’s shift toward a service and consulting focus has been going on for years (we joked that it already looked a bit like IBM West a year ago), the decision to spin off its PC business is a bit of a surprise. After a rocky merger with Compaq, HP had grown to dominate global PC sales, and its purchase of Palm and WebOS had indicated it was at least trying to pursue options that could help keep it relevant as sales of compact touchscreen devices soared.

Nevertheless, the margins of the PC business have remained very narrow, and most of HP’s competition is either suffering or attempting to go upmarket (Dell being the primary example of the latter).

  1. John Eissmann says:

    Once upon a tine every product sold by HP had a nearly magical quality, carefully engineered, high quality, unlike anything the competition made. That was when the company was sun by engineers. When the HO board went all politically correct and brought in a woman with no tech background whose only real experience was self promotion and being promoted by latching onto men with admin power, the eventual death of HP was assured. The ngineering talent was gutted and they became commodity producers.
    Most product now made with the HP logo is shoddy junk. I quite buying Hp long ago, no product support, and crummy quality compared to competitors offerings, they had been cashing in on their past reputation.
    HP actually died when they spun off Agilent, where some of the old HO still lives.

  2. Yeah that’s true that H.P are selling their franchises business as H.P is one of the best quality products well they have know selling their business and franchises . Well this is a great information for the people who are looking for developing the franchises business. Thanks for sharing and keep on updating the good work.