HP to Become H and P?

Hewlett-Packard, a giant in the technological field, could split into two companies in order to focus more on the needs of the corporate sector.  The change will separate their computer and printer services from their computer hardware business.  This split has come about due to the transition of the market into mobile computing, HP’s market value of $66 billion is overshadowed by those of Apple and Microsoft, $596 and $380 billion respectively.

HP’s shareholders have put pressure on them to cause this move.  They said that HP should focus on the more-profitable server and data-storage operations that cater to businesses.  Although moving away from companies like Apple and Microsoft that currently dominate the market, his separation could be detrimental for the company.  This spinoff could show instability which would create uncertainty in the minds of investors when they think of the two possible companies.  Before this recent turn of events, HP’s quarterly reports showed company growth as older businesses were updating their current technology.  It is difficult to tell whether HP will be better off, this risky move could give HP the #1 market share in corporate technology, or it could spell certain doom if they cannot get the necessary support from stockholders.

 

Source: http://www.theglobeandmail.com/report-on-business/international-business/us-business/silicon-valley-giant-hewlett-packard-to-split-in-two-report/article20938032/

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