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Reports: Hewlett-Packard to spin off PC business

By R&D Editors | August 18, 2011

SAN
FRANCISCO (AP) — Hewlett-Packard plans to spin off its personal
computer division into a separate business, according to news reports.

The
decision, according to unnamed sources cited in reports by The Wall
Street Journal and Bloomberg, would isolate a division that is HP’s
biggest generator of revenue but is its least profitable.

It
marks a reversal from HP’s previous stance, in March, when the company
called reports that it might sell its PC business “irresponsible
reporting”.

The
PC industry is under pressure from hot-selling smartphones and tablet
computers, which have contributed to already weak consumer demand for
PCs in the U.S. and Europe. HP may announce the move as early as
Thursday afternoon, when it reports quarterly financial results.

An HP spokesman did not return a call from The Associated Press.

SOURCE: The Associated Press

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