HP to keep PC division

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HP to keep PC division
Meg Whitman.

Internal review concludes sell-off was a bad idea.

HP's board has decided to keep its personal systems group after an internal evaluation found the division would not perform as well as a standalone company.

The company's CEO Meg Whitman today announced the PC brand would stay in-house, reversing the decision of her predecessor Leo Apotheker, who in August announced HP would either sell it or spin it off.

The internal review studied the PSG's contribution to the company's overall sales and brand recognition. Whitman said in a statement the company would be stronger with its PC brand.

"Its clear after our analysis that keeping PSG within HP is right for our customers and partners, right for shareholders, and right for employees."

John Grant, CEO of ASX-listed HP reseller Data#3 said he hoped the company would retain its successful PC brand.

“I’d like to see PSG stay within HP. I think it works for the customer,” he said. “That’s why I thought (HP's operating system) webOS worked well; the same interface from the mobile device through to the PC through to the data centre, that’s what customers need.”

“As long as there is an HP PSG business in some form, we’ll be a reseller for HP products.”

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