HP to Refrain from Spinning Off Personal Computer Division

Hewlett Packard is likely to refrain from spinning off its personal computer business.

According to an article on Digitimes, the company is under pressure from channel operators not to spin off the personal computer group.

The article states that many HP channel operators have already jumped ship to HP’s rivals like Acer, Asustek Computer, Dell and Lenovo because of all the uncertainty surrounding the fate of its PC group, which is the largest in the world by shipment volumes.

Sources claim that Acer has been the biggest beneficiary of the order shift made by HP’s channel operators because it has placed higher than expected orders with its Original Design Manufacturer (ODM) partners.

HP’s ODM partners, which include Quanta Computer, Inventec, Wistron and Foxconn Electronics, will ‘regain their confidence’ in HP if the company decides not to spin off the PC unit.'

“Our intent all along was to look at whether there was a benefit to investors or to customers...[But] if it cannot be stronger on the outside--delivering better equipment and technology than our competitors--it stays inside,” said HP executive chairman Ray Lane during a conference call, as reported by Cnet.