Forbes | March 10, 2011 | Eric Savitz
Hewlett-Packard (HPQ) is considering selling its PC business, with Samsung the most likely buyer,DigiTimes reports, citing a report in the Chinese-language Commercial Times. However, the story added that sources in the component industry say rumors about such a deal have been circulating in Taiwan since Q4 2010, and that a deal “was called off due to an unknown reason.” Update: And HP is denying the story, see below.
DigiTimes says its sources find the possibility of HP getting out of PCs “rather low,” noting that it is still the largest global notebook vendor.
HP isn’t commenting.
Other potential buyers, the story notes, include Lenovo, which a few years ago bought IBM’s laptop business, and Foxconn Electronics, the large contract manufacturer.
I’d note that selling the PC business would follow in the footsteps of IBM, which over the years has shed many of its hardware businesses – including PCs and disk drives – and refocused on software and services. Under new CEO Leo Apotheker, HP likewise is expected to make a big push into software. A move to shed the PC business would be a complete reversal of the company’s strategy under former CEO Carly Fiorina, who bulked up HP’s PC business with the acquisition of Compaq 10 years ago.
Update: In a research note, Barclays Capital analyst Ben Reitzes writes today that while HP is unlikely to sell the PC business,
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