HP Rethinking Wisdom of Spinning Off PC Division

bdking writes "After signing off on former CEO Leo Apotheker's proposal to spin off or sell HP's personal computer unit, the company's braintrust is reassessing the wisdom of dumping a division that contributes nearly 30% of revenue and holds together a valuable supply chain." HP appears concerned not so much for the revenue generated by PC hardware, but instead by access to various distribution and supply channels. It seems that just announcing a spin-off has affected their access to retail distributors.

Comments

My thoughts

[jesseck]

I won't purchase an HP device (didn't before, either) and don't recommend them to friends and family (didn't then, either). This is just reinforcement of my beliefs. Who wants to own a device, that the manufacturer doesn't want themselves?

Re:My thoughts

[Crudely_Indecent]

I always had a rule when purchasing PCs. Now, this rule has since lost much of it's impact, since one of the manufacturers went poof, and the other two merged -

Never buy a computer with PACK/PAQ in the name. At the time, this included Hewlett Packard, Compaq, and Packard Bell

Although losing much of it's impact, the rule still stands (at least for me)

MBA bullshit.

[unity100]

Thats what happens when mbas take over running of corporations. Everything is geared towards teaching of maximizing profit minimizing costs in those programs in ultimate end, and even if some programs incorporate engineering concepts like systems management and so on, the mba types eventually lack on strategic planning and vision.

flop. thats what you get if you hire too much suits or put them in charge.

Re:MBA bullshit.

[sbrown123]

It has little to do with having an MBA. These boards are usually staffed with people assigned by majority holders for their ability to "maximize profits". But companies can only grow so much and the economy goes up and down. Investors don't want waves, only inclines. To keep their well paid jobs these MBA's, as you call them, do whatever they can. This usually means some imaginative book keeping, slashing staff, and trying to outsource where possible. The really good MBA's only stick around for a short period since their work always have a quick fall to follow. And who wants to be on a sinking ship?

Re:Fire the board

[laffer1]

I recommend looking at who's currently on the board at HP. It explains everything. There's a ridiculous number of hedge fund managers and similar type people. They've only got one real HP person on the board and that person is from enterprise marketing or something like that. No one on the board understands their products or what they do except possibly this marketing person.

You would think a company like HP would have at least a few people who've run tech companies on their board.

Re:Fire the board

[fuzzyfuzzyfungus]

They really ought to experiment with outsourcing the board of directors to a call center somewhere.

It would't necessarily generate better leadership; but 8-12 incomprehensible guys allegedly named "Robert" somewhere in the far east would provide incomprehensible decisions and inconsistent directions for several factors of ten less money...

Re:Dumbasses!

[fuzzyfuzzyfungus]

Don't be so dismissive of MBAs... If you stop falling for the illusion that their 'business' is running businesses efficiently, and start viewing them as amoral rational actors feathering their nests at the expense of anybody whose pockets they can reach, you'll see that they are extraordinarily effective a locating targets, infesting them, sucking them dry, and then moving on, somehow not dragged down by their record of failure and occasional malfeasance...

Never make the mistake of underestimating a superb parasite because it is lousy at whatever non-noxious lifeform it is mimicking...