HP to review its PC division by year-end

A big move for HP

Todd Bradley, executive vice president of HP's Personal System Group, revealed this week that the company is set to review its PC division within the next few months.

Hewlett-Packard Co has announced that it is set to make some radical changes to its hardware production. Firstly, the company will discontinue its tablet line after the unsuccessful launch of HP TouchPad. All of its tablets are currently on sale at cut prices, and HP will not be manufacturing any more mobile device once these are sold.

The company will also be reviewing its current position within the PC market. Despite being the largest manufacturer of PCs, it is planning to either sell this division or rebrand it as a spin-off business. These definitive changes are set to be finalised within a few months. Bradley stated: "Work will get completed probably over the next eight to 12 weeks and we will sit down with the board and take them through the results."

What spurred this change?

While HP is the largest producer of PCs and is still making a profit off of its hardware, it seems that this is not enough. The profits which are up for grabs in the PC market have dwindled due to the rise of tablets and smartphones. The lack of fast paced innovation within the PC market means that people have lost interest in the products and have instead become excited about mobile devices and their constant adaptation.

Tom Glass, creative director at theEword, stated: "We are currently within a mobile age, which sadly means that we have somewhat left the PC behind. While consumers still require a PC within their household, they appear much less willing to replace them on a regular basis."

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