HP merges printer and PC units

The struggling tech giant plans to combine its PC and printer groups into one operation, hoping for cost savings from unified marketing, supply chain and support, but analysts have questioned the move
Written by Larry Dignan, Contributor on

HP is merging its PC and printing units in a bid to improve the financial profile of both product lines, which are increasingly commoditised, the company announced on Wednesday.

The news, which surfaced on Tuesday, means that Vyomesh Joshi, who led the printer unit, is retiring. The combined unit will now report to Todd Bradley, who heads up the company's Personal Systems Group (PSG).

HP said in a statement that the combination will help the company's go-to-market strategy, branding, supply chain and customer support. However, analysts are already questioning the rationale. For instance, the combination is not likely to result in many cost savings or synergies, according to Sterne Agee analyst Shaw Wu.

"While we believe there is room for cost synergies, we are not sure of the strategic benefits, as we believe each has a unique business model," Wu said.

For more on this ZDNet UK-selected story, see HP combines printer, PC units; Analysts question synergy on ZDNet.com.

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