HP Exec Says PC Unit Spinoff "Best Value"

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The head of Hewlett-Packard's Personal Systems Group says that spinning off the company's PC unit is the "best option for shareholders."

Now, the board of the largest U.S. technology company by revenue is expected to decide before the end of the year whether to hive off its PC arm -- which began selling the TouchPad in July -- into a separate company, considered the best option for shareholders.
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I think what would e best for HP is the people running it should write down what they think should happen, and then an intern writes down the opposite of that before issuing it to anyone.
 
The same execs who are gonna get paiiiiidddddddd for selling...

Gonna be a nice pay day for some execs at hp
 
Yeah, that must be why their stocks tanked by almost 30% when they announced they would either be selling or spinning off their PC group.

Apotheker needs to fucking go. He has singlehanded killed off two of the most innovative tech companies in the sector. Bought out and destroyed Palm, and now he's essentially leaving behind the hardware group. And if you don't think HP is innovative - look up Memristors.
 
Solidstate89 said:
Yeah, that must be why their stocks tanked by almost 30% when they announced they would either be selling or spinning off their PC group.

Apotheker needs to fucking go. He has singlehanded killed off two of the most innovative tech companies in the sector. Bought out and destroyed Palm, and now he's essentially leaving behind the hardware group. And if you don't think HP is innovative - look up Memristors.
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apotheker never bought palm (nor was he CEO when they did) and HP's stock took a dive due to investors' revenue prediction (not b/c HP is somehow less innovative than before).

But don't let the facts get in the way of your rant.
 
All the other PC manufactures like Dell, Samsung, Acer etc. compete in other markets and industries. HP on the other hand gets most of its revenue from the PC segment. If we assume that traditional PC sales will decline, then HP is doing the right thing. I don't really agree with the direction the CEO wants to take but getting rid of the PC division will at least free up capital.
 
HP has a lot of money invested in PCs but the margins are low. HP makes a lot of money on services too. Selling contracts for uptime percentages and things like that to major corporations. HP has contracts with many companies like intel, verizon, 911, etc.
 
Yeah I have a feeling if they actually examined their current CEO he would be locked up somewhere in a padded room. They have a insane person running their company right now.
 
Evil said:
Yeah I have a feeling if they actually examined their current CEO he would be locked up somewhere in a padded room. They have a insane person running their company right now.
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Agreed. The last CEO was no prize either, though at least wasn't releasing contradictory press releases ever hour. He was, however, constantly gutting the North American workforce, to make his numbers look better, with little regard to how it effected a given client or his people. Personally, I'd be OK with someone feeding both of them into a volcano, slowly. I'd probably even spring for the PPV. ;)
 
bigpimpatl said:
All the other PC manufactures like Dell, Samsung, Acer etc. compete in other markets and industries. HP on the other hand gets most of its revenue from the PC segment. If we assume that traditional PC sales will decline, then HP is doing the right thing. I don't really agree with the direction the CEO wants to take but getting rid of the PC division will at least free up capital.
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Im pretty sure if a CEO runs their company by assumptions then they are going to fail. I go by this guy's track record and to say hes pretty bad with his assumptions.
 
bigpimpatl said:
apotheker never bought palm (nor was he CEO when they did) and HP's stock took a dive due to investors' revenue prediction (not b/c HP is somehow less innovative than before).

But don't let the facts get in the way of your rant.
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Really? I thought Apoetheker was the CEO when they bought Palm? I guess it was still Hurd, huh?

Either way, he still destroyed the Palm division even if he wasn't responsible for buying them out.
 
Hurd was a Turd and Apoetheker lets see if he can pull some magic. Personally the need to come up with something ground breaking cause their server division and professional services is sucking that bad, that every we renew hardware wise is none HP from an enterprise standpoint. The only product I kinda like from them is there ICE product specifically the server migration portion of it.
 
I bet they are missing Carly Fiorina right about now.

@JimmayLong = LOL. So who do you like for enterprise servers? If you say IBM I am coming over to your house to laugh in your face. HP server hardware and their professional services teams make IBM look like a bunch of dancing monkeys.
 
bigpimpatl said:
All the other PC manufactures like Dell, Samsung, Acer etc. compete in other markets and industries. HP on the other hand gets most of its revenue from the PC segment. If we assume that traditional PC sales will decline, then HP is doing the right thing. I don't really agree with the direction the CEO wants to take but getting rid of the PC division will at least free up capital.
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That may be true, but the handling of it, which is as important as the decision itself, has been abysmal. With the company publicly floundering around with this crap, it is absolutely destroying the value they will be able to get out of a future sale.

Hey everyone! Our core business, what made us who we are, is now such a shitty one we want to turn on a dime and dump it! Who wants to buy it for a premium price?!? Bueller?
 
TwistedAegis said:
That may be true, but the handling of it, which is as important as the decision itself, has been abysmal. With the company publicly floundering around with this crap, it is absolutely destroying the value they will be able to get out of a future sale.

Hey everyone! Our core business, what made us who we are, is now such a shitty one we want to turn on a dime and dump it! Who wants to buy it for a premium price?!? Bueller?
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The pc division isn't necessarily what made HP into HP. Fiorina started the whole mess and in a way, Apotheker is cleaning it up.

And the PC division isn't going to be sold, (from the article) it will be spun off into a different company. Kind of like when AMD spun off it's foundries into GF. All it means is the PSG's net worth will be separate from HP, and HP will probably have a majority stake in the new company. This is more efficient because it allows HP to pursue other activities without being tied down to the consumer division.
 
bigpimpatl said:
The pc division isn't necessarily what made HP into HP. Fiorina started the whole mess and in a way, Apotheker is cleaning it up.

And the PC division isn't going to be sold, (from the article) it will be spun off into a different company. Kind of like when AMD spun off it's foundries into GF. All it means is the PSG's net worth will be separate from HP, and HP will probably have a majority stake in the new company. This is more efficient because it allows HP to pursue other activities without being tied down to the consumer division.
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Nit: it's not the consumer division, it's the personal systems group, which includes desktops and notebooks for both consumer and commercial markets, plus some other little odds and ends. And spinning it off is the only way Todd Bradley would likely get to be a CEO, since he's tainted in the eyes of hiring boards with the WebOS/Palm debacle.
 
Burticus said:
I bet they are missing Carly Fiorina right about now.
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As a former employee and current shareholder, no we don't miss Carly. There are reasons why die hard republicans that work for HP actively campaigned against her run for senate.

(I should say that she wasn't that bad. She did a lot of good for the overall HP image, but people didn't trust her. Mark Hurd changed little, people just trusted his direction more and HP's stock went from ~15 to 50.)
 
TwistedAegis said:
That may be true, but the handling of it, which is as important as the decision itself, has been abysmal. With the company publicly floundering around with this crap, it is absolutely destroying the value they will be able to get out of a future sale.

Hey everyone! Our core business, what made us who we are, is now such a shitty one we want to turn on a dime and dump it! Who wants to buy it for a premium price?!? Bueller?
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You realize HP was started out by making Oscilliscopes and test equipment? Which they spun off. They also had a good medical devices team, which was sold.
 
zoobaby said:
You realize HP was started out by making Oscilliscopes and test equipment? Which they spun off. They also had a good medical devices team, which was sold.
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With that in mind I'm surprised that they still haven't spun off their calculators.
 
Spin Apotheker all the way back to Germany as fast as you can. All this crap makes me wonder if Apotheker has a clause in his contract that would result in a big payoff if they fire him. Maybe thats why he is screwing up this bad.
 
GushpinBob said:
With that in mind I'm surprised that they still haven't spun off their calculators.
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Calculators are low touch design now. Though the group they are in would likely be added to a PC spinoff. Been a while since I worked there, but I think calculators are part of the Mobile Computing Division, which falls under the PSG business.
 
zoobaby said:
Calculators are low touch design now. Though the group they are in would likely be added to a PC spinoff. Been a while since I worked there, but I think calculators are part of the Mobile Computing Division, which falls under the PSG business.
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There isn't mobile computing division anymore, not for a while, and calcs fall under accessories. I wouldn't say everything is a low touch design, either.
 
rudy said:
Spin Apotheker all the way back to Germany as fast as you can. All this crap makes me wonder if Apotheker has a clause in his contract that would result in a big payoff if they fire him. Maybe thats why he is screwing up this bad.
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He is not really German. Anyway, he is a horrible CEO.
 
GushpinBob said:
With that in mind I'm surprised that they still haven't spun off their calculators.
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Have you seen what they charge for a good calculator? They cost half as much as a laptop. They have to be making a killing on them.
 
Rucker61 said:
Hey!
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What? My last post wasn't meant to put their calculators in a pejorative light. I've owned a 50g for almost a year now and it wipes the floor with my old TI-83+. Heck, I found it nearly indispensable in Calc II.

However, I just don't see that many HP calculators out there in real life. They're probably a lot more common at many engineering and high tech firms, but for public and higher education you just don't see them that often. With TI pretty much owning a monopoly over calculators in the educational markets (I've heard the same for Casio outside of the US), I've never seen them as a major player. To be honest, I was surprised that they still made calculators after my brother purchased a 48gII a couple years ago.

BladeVenom said:
Have you seen what they charge for a good calculator? They cost half as much as a netbook. They have to be making a killing on them.
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FIFY. I'm looking on Amazon right now and the only HP calculator that supports your claim is the 50g. Anything else I'm seeing less for $100.
 
GushpinBob said:
What? My last post wasn't meant to put their calculators in a pejorative light. I've owned a 50g for almost a year now and it wipes the floor with my old TI-83+. Heck, I found it nearly indispensable in Calc II.
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I know you weren't talking down HP calcs - I was just yelling.

However, I just don't see that many HP calculators out there in real life. They're probably a lot more common at many engineering and high tech firms, but for public and higher education you just don't see them that often. With TI pretty much owning a monopoly over calculators in the educational markets (I've heard the same for Casio outside of the US), I've never seen them as a major player. To be honest, I was surprised that they still made calculators after my brother purchased a 48gII a couple years ago.
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The US isn't the whole world, and we're still making calculators for all markets. Heck, we just shipped the 30th Anniversary of the HP 12c. HP is still a player in the financial world.
 
Perhaps a Mandingo and Lex Dp of every ceo? I would buy that dvd.

Reality is so sad. No wonder I avoid it.
 
Rucker61 said:
The US isn't the whole world,
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Thanks. I have trouble remembering that. :rolleyes:

Rucker61 said:
and we're still making calculators for all markets. Heck, we just shipped the 30th Anniversary of the HP 12c. HP is still a player in the financial world.
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Didn't know they were still popular in the financial world.

Do you think HP would ever consider challenging TI's position in academia? It would be nice if more students were exposed to RPN instead of settling with nested parentheses. A lot more efficient IMO.
 
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