Another personal computer company caves in to the pressure in the computer industry.  Hewlett-Packard has announced that they will be splitting operations into a PC and printers branch and the “more profitable” networking, data storage, and server provider branch.

In my opinion, this was a good business move, facading an exit-strategy.  By splitting, HP does not face the same consequences that it would by just forfeiting the industry all together.  By splitting, HP does not risk total failure if the market demand for its computers and printers disappears all together.

HP felt the pressure from Apple and Microsoft, who have market values of $596 billion and $380 billion as compared to HP’s $66 billion.  This shows that the think-tanks at HP finally listened to its stakeholders and realized their reign in the computers industry is coming to a close.

The computers industry is becoming less and less competitive as we move farther and farther into the 21st Century.  Dell and HP, two strong players who ruled the market less than a decade ago, are now dwarfed by Microsoft and Apple, who now control two very large sectors of the industry.  It almost seemed inevitable that the two largest rivals, Microsoft and Apple, would engage in such a fierce competition that they would unsuspectingly, almost monopolize the computers industry.

Full article at: http://ca.reuters.com/article/businessNews/idCAKCN0HU0QY20141005?pageNumber=3&virtualBrandChannel=0

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