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Matthew Poujol analyst Pierre Audoin Consultants discusses the reasons for the decision and the implications for the company.
HP’s decision to split into two separate entities is -she feel?
This decision comes three years after the proposal Apothecker Leo (head of the group from 2010 to 2011) to separate the PC business altogether. There it is not quite that, but it looks like it. And it is a decision that is justified.
The PC market is declining. And HP is overdue for a while on this segment. Consumers want machines that also allow them simply as possible to surf the Net, go on social networks, check their e-mails.
But their tablets and smartphones are very well this work. They no longer even need to renew their PC at the same frequency as before. And HP is not really even on the market mobility. Disengage from the PC is a decision that goes in the right direction.
But how out of the PC market may be beneficial to the group
The problem with the PC market is that not only it is not doing well, but in addition, the value added of the manufacturing of personal computers is captured by semiconductor vendors such as Intel . And not really by PC giants themselves. It becomes less and less interesting to be on this sector.
HP has, moreover, began a rise successfully in business services and software. It’s no wonder they want to spend a division.
They are positioned intelligently about cloud computing and software that manage the technology. HP was also becoming too big company that made the big difference in times to sell products: they run too many services, products with different distribution channels
But no. ‘There he is no risk to separate services from hardware sales
Ironically, the weight of the group and just this mass of activity also has an effect Positive: HP could influence the decisions of its customers and the importance of their orders. With the split, they simplify the management of their products, but they lose that weight.
In addition, the other negative is, a priori, the difficulty of enforcing a split of this type. This may be difficult to get everything in place without creating confusion among customers. And we must not forget the importance of the PC in the minds of customers. HP is also (and always) associated with the image of the two founders [Bill Hewlett and Packard] who hacked computers in their garage …
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