HP Posts Ads Concerning Its PC Business Unit: A Startup Valued at $40 Billion

HP Calls PSG “Spirit of Startup with Security of HP”

by Anton Shilov
09/01/2011 | 04:00 PM

Hewlett-Packard has posted an advertisement concerning its personal systems group (PSG) and its future. From the ad it is clear that the company wants to spin-off its business unit, personal computers will continue to carry the HP label and firm will continue to support the “startup” that is valued at $40 billion.

 

With a series of advertisements, HP wants to send the world a clear message: the new organization would be a $40 billion business with the agility and freedom of a start-up. The prospect is very exciting for the new HP PSG company and is rather formidable for the industry. A PC maker of that size, which will no longer be locked into HP’s policies and hurt by slow corporate decision making can easily rival and conquer almost any PC maker out there.

“Our preferred course to harness our vision of the future is to build a separate, more agile company. It is time to think like a startup again. It's time to be nimble and revolutionary. It's time again for world-changing innovation. And so, it's time we realized we're at a crossroads in an evolving HP,” said Todd Bradley, executive vice president of HP.

Although HP sells two personal computers per second in 170 countries around the world, the company has extremely archaic product line and presently does not address loads of segments of the PC market; for example, the company does not sell stylish notebooks, PCs for gamers and many other types of computers. The company even ceased attempts to popularize its webOS-based gadgets and discontinued its tablets less than two months after the launch.

An interesting question is the reason why HP wants to advertize spinning-off its business. One of the explanations is that the company wants end-users to understand that “the new HP PCs” are coming, so watch out. Another explanation is that HP is looking forward a strategic investor, who could help to boost the PSG once it is independent.