HP Merges Printing and PC Divisions

HP Merges Printing and PC Divisions

Instead of spinning off its PC business, as was rumored late last year, American technology giant Hewlett-Packard has formally announced that it will be merging its two main divisions into one unit with over USD 65 Billion in annual sales. The businesses in question are the Personal Systems Group, which produces HP's notebooks and desktop PC systems, and the Imaging and Printing Group, which handle's the company's long-standing printer and ink business. The move is being made in order to unify the company's brand image, supply chain management and customer service, which in turn will hopefully reverse the company's trend of losing market share and revenues. According to an IDC report, HP's global share of the PC market fell signifcantly from 19.4% to 16% in 2011, while its printer business lost 13% of its revenue in the past four years.

Source: Reuters, Businessweek Official HP Press Release