Updated: The web is reverberating with news from HP today that is will keep its PC division. The official release from HP makes it clear it will stay behind the Personal Systems Group (PSG):
“HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” said Meg Whitman, HP president and chief executive officer. “HP is committed to PSG, and together we are stronger.”
HP had previously stated it was considering spinning off the PSG, so it’s not accurate to call this decision a flip-flop. That’s a natural response to today’s announcement, though, as it is highly unusual for any company to publicly state it is considering getting rid of a major part of its business.
Now that the fate of the PC division is safely decided, is it possible that HP might reconsider its untimely execution of the TouchPad tablet? Recent rumors have stated the company is testing Windows 8 on TouchPad hardware, and while that doesn’t mean anything it raises the revival possibility given today’s announcement.
Should HP revive the TouchPad, a device that has proven popular since selling an estimated million of them at clearance bin pricing, the big question is can they be sold at a profit? The $99 fire sale price is obviously not viable, but how high can HP go and still sell lots of TouchPads?
I am still enjoying my TouchPad, and find it to be the best tablet I have used. That and five bucks will get you a latte, so no telling what HP might do. Chances are they will do nothing with the TouchPad, although it doesn’t sound like shopping around the webOS platform has gained them any lattes either.
Update: During the Q&A on the press call with this annoucement, Whitman stated that HP will indeed make tablets, but running Windows 8. She went on to state the company had not decided what to do with webOS, but would decide in a couple of months. I am not feeling the commitment from HP at this point.
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