Hewlett-Packard (HP), the world’s largest PC maker, after ending WebOS, is considering spinning off its massive PC manufacturing business. 

According to HP, its Personal Systems Group (PSG) is worth $40 billion in annual revenues. The PSG includes personal computers, technical workstations, WebOS-powered tablets and smart phones, as well as personal storage solutions.

The quick and steady growth of tablets, particularly Apple’s iPad, is not good for companies that have invested billions of dollars in building and selling PCs.

There are other areas where HP can invest its time and money to get a better return and higher growth rate. So it makes sense to get out of the business if that’s their rationale. Spinning it off rather than selling it is due to the fact that there aren’t a lot of buyers who have the desire and the money to take it off HP’s hands.”

-Dan Olds, an analyst with The Gabriel Consulting Group.

HP CEO Leo Apotheker said, any possible spin-off of the PC business won’t happen soon, and said that the company will take 12 to 18 months to consider its options, further adding that he is “taking ownership” of all of these decisions.

 

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