Another was that the reduction in scale resulting from hiving off the PC business would increase the price paid for components used in the remaining hardware lines due to the reduction in volume discounts.
But that's now all academic, as HP has decided its best course is to keep the PC business inside the tent. "HP objectively evaluated the strategic, financial and operational impact of spinning off PSG [Personal Systems Group]. 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 officials referred to the deep integration of supply chain, IT and procurement across the company, and the part PSG plays in the company's solutions portfolio and brand value. And that's just what outside critics of the idea said when the possibility of divestiture was raised by management.
"As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry's broadest portfolio of PCs, workstations and more," said Todd Bradley, executive vice president, HP PSG.