August 19, 2011
HP to exit the hardware manufacturing business!
Shocking news has surfaced today, that HP the world’s largest PC manufacturer is considering exiting the hardware manufacturing business and that includes desktops, laptops, tablets and phones in order to engage a different strategy and that is to focus on software and services.
HP has confirmed that it is seriously considering selling its personal systems group, which includes its PC manufacturing business. The company also confirmed that it would close down its webOS business, despite paying $1.2 billion to buy Palm just over one year ago.
This news also comes about even though HP has launched the Touchpad in July of this year; however the device failed to create demand among both business and personal consumers.
The new strategy focusing on software and services has been apparent ever since the company announced the hiring of former SAP Chief Executive Leo Apotheker in September of 2010. To even emphasize this new strategy, HP is also purchasing UK software company Autonomy for $11.7 billion.
HP’s shares responded negatively to the news falling 6% by the end of trading. They had shed a further 4% in after-hour trading.
Updated: August 19, 2011 1:17 PM