Monday, 17 January 2005 19:30

HP combines printer and PC units

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Hewlett-Packard has combined its printing unit with its personal computer division, helping end speculation that HP would follow competitors in spinning off divisions.

The Mercury News reports (14 Jan) that the move aims to strengthen the company's market position and get new products out faster.

In December, HP chairman Carly Fiorina said the company's board had three times considered breaking up the technology giant, but decided its diversified portfolio of printers, computers, digital cameras, servers and information-technology services helped it weather fluctuations in the cyclical technology sector.

By contrast, IBM sold its PC segment in December because it's margins had become razor thin.

In the fiscal fourth quarter, ended 31 October, HP's printing unit posted operating profit of $US1.1 billion, up 7 percent from a year earlier. Revenue rose 5 percent to $6.5 billion, as HP shipped a record 14 million printers.

The PC group reported quarterly operating profit of $78 million, a gain of more than three times the year-earlier quarter's $22 million. Revenue for the division rose 9 percent to $6.5 billion.

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Stan Beer

 

Stan Beer co-founded iTWire in 2005. With 30 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications.

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