(Image source: Gizmag)


BY EVAN THOMAS

 

ANCHOR JIM FLINK


Look out for some incoming restructuring at HP — the company plans to roll together its imaging and PC divisions, hoping to streamline operations.

All Things Digital talked with sources close to the plan. They say combining HP’s high-margin printer business with its less-profitable PC group will make it easier for HP to sell bundles to consumers — and that, in turn, will save HP money.

The plan comes as HP faces lackluster returns, thanks to the prevalence of more and more online solutions. Business Insider reports.

“People are simply printing less than they used to. Photo and file sharing sites are shifting the focus away from ink and paper and into the cloud. Technologies like digital advertising are reducing the need for commercial printing.”

But Bloomberg points out printing is still one of HP’s most profitable businesses — thus providing the perfect “cover.”

“A lot of people still say ‘hey, the printer business is a cash cow business, you’ve gotta go out and buy a cartridge to replace the one you just bought, and it costs you a lot of money.…’ Maybe the printer business helps mask some of the weakness you’ve got from the PC business.”

HP’s PC earnings have been steadily declining. ReadWriteWeb says the market isn’t what it used to be, and it isn’t sure this strategy will work.


“We're getting perilously close to the point where buying a new PC -- or a new printer -- is about the same as getting a new blender. Combining HP's printer and PC divisions isn't going to delay that day.”

And because of that, The New York Times says HP’s consolidation will likely involve restructuring.

“Layoffs now seem likely. Personal computers and printing have substantial overlaps in many areas, including manufacturing and marketing. Both businesses have been challenged by the popularity of cloud computing and Apple’s iPad, which allow easy storage and display of documents and photos.”

According to the plan, HP’s current print division head Vyomesh Joshi will be leaving the company. Executive VP Todd Bradley will run both operations.
 

HP to Combine Printing, PC Operations

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Mar 21, 2012

HP to Combine Printing, PC Operations

(Image source: Gizmag)


BY EVAN THOMAS

 

ANCHOR JIM FLINK


Look out for some incoming restructuring at HP — the company plans to roll together its imaging and PC divisions, hoping to streamline operations.

All Things Digital talked with sources close to the plan. They say combining HP’s high-margin printer business with its less-profitable PC group will make it easier for HP to sell bundles to consumers — and that, in turn, will save HP money.

The plan comes as HP faces lackluster returns, thanks to the prevalence of more and more online solutions. Business Insider reports.

“People are simply printing less than they used to. Photo and file sharing sites are shifting the focus away from ink and paper and into the cloud. Technologies like digital advertising are reducing the need for commercial printing.”

But Bloomberg points out printing is still one of HP’s most profitable businesses — thus providing the perfect “cover.”

“A lot of people still say ‘hey, the printer business is a cash cow business, you’ve gotta go out and buy a cartridge to replace the one you just bought, and it costs you a lot of money.…’ Maybe the printer business helps mask some of the weakness you’ve got from the PC business.”

HP’s PC earnings have been steadily declining. ReadWriteWeb says the market isn’t what it used to be, and it isn’t sure this strategy will work.


“We're getting perilously close to the point where buying a new PC -- or a new printer -- is about the same as getting a new blender. Combining HP's printer and PC divisions isn't going to delay that day.”

And because of that, The New York Times says HP’s consolidation will likely involve restructuring.

“Layoffs now seem likely. Personal computers and printing have substantial overlaps in many areas, including manufacturing and marketing. Both businesses have been challenged by the popularity of cloud computing and Apple’s iPad, which allow easy storage and display of documents and photos.”

According to the plan, HP’s current print division head Vyomesh Joshi will be leaving the company. Executive VP Todd Bradley will run both operations.
 

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