Rumours May Point to Transformation of HP’s Voodoo Unit

HP May Shut Down Voodoo PC Luxury PC Division

by Anton Shilov
09/22/2008 | 10:38 PM

Market rumours say that Hewlett Packard is about to either dramatically reorganize or even close down its Voodoo PC business unit that sells high-end gaming and mobile personal computers. The rumour comes months after HP announced that it would sell Voodoo-branded products worldwide, not only in the USA.

 

Citing “insider close to the situation”, Techgage web-site on Monday reported that VoodooPC notified at least certain staff members regarding the forthcoming layoffs and also started to return products to its suppliers. It is unlikely that boutique personal computer supplier was unprofitable and even if it is, it is hard to believe that its losses are significant for HP.

The founder of Voodoo – which HP acquired about two years ago – was rather quick to comment on the rumour, but did not deny information regarding closure of the division.

“HP is working on a plan to better leverage its existing resources to bring Voodoo products to market faster and make them more accessible to consumers. I can assure you that Voodoo employees and champions of the brand will continue to work on the conceptualization, design and development of Voodoo products,” said Rahul Sood in an interview with Gizmodo web-site.

Presently HP ships two families of luxurious PCs aimed at gamers or those looking for premium-class computers: its own line as well as Voodoo line. Theoretically, both families compete against each other, however, they also battle traditional rivals: Dell and Alienware.

Even though during economy crisis sales of expensive products decrease, it is unlikely that sales of luxurious Voodoo desktops and notebooks drop dramatically to shut the business unit down. Nevertheless, it may be the right time to reorganize HP’s high-end PC business to streamline operations and improve quality of service.