SAN FRANCISCO — Hewlett-Packard announced last week that it no longer intends to spin off or sell its PC division — a plan first brought to light in August by the technology conglomerate's now former chief executive.
HP said Thursday that it reached its decision after evaluating the impact to the company of jettisoning the business unit, which is the world's biggest manufacturer of desktop and notebook computers for consumers and businesses.
The unit supplies a third of HP's revenue, and PCs are an area where the company is a market leader. But it is HP's least profitable division, and its disposal was meant to be part of former CEO Leo Apotheker's plan to transform the company into a twin of rival IBM Corp.: a company focused on businesses, rather than both businesses and consumers.
In an interview, HP's new CEO, Meg Whitman, said the company determined that, given the lost revenue and cost, removing business "makes no sense."
"I have a lot of confidence we've made the right decision and now we're going to go back to work and go execute," she said.
Some analysts cheered HP's decision as the right move, saying they were happy that Whitman made the announcement so rapidly. She had previously said the company would make a determination about the business by the end of the year.
"The fact that Meg pushed this decision very quickly is absolutely cleaning up the mistakes of the past," Gartner analyst Mark Fabbi said.
Whitman said she wanted to reach a decision on the business as fast as possible because it had "created a lot of uncertainty in the marketplace."