HP to keep PC division

Updated: internal review concludes sell-off was a bad idea.

HP will 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 her predecessor Leo Apotheker's decision announced in August to sell the division.

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 parners, right for shareholders, and right for employees."

The move ends a long period of instability for the company's channel partners. Many had been waiting anxiously since Apotheker first raised the possibility of a PSG sale.

Lenovo managing director Alan Munro told CRN last month the company had gained 40 new resellers as a result of the confusion surrounding HP. Lenovo’s latest marketing campaign aimed to attract partners dissatisfied by HP’s PSG strategy.

Frank Triantafyllou, CEO of HP reseller Complete PC Solutions had been confident Apotheker's departure would see HP keep the group in house.

“It’s pretty obvious the board didn’t like his decision, which means most likely it will change its decision and go back to how HP was,” he said.

“I’ve told clients things would be alright and HP is taking the right steps to fix this issue by getting rid of Leo.”

Data3#’s John Grant had also 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.”