Analysts say HP PC business is huge and Asian companies are hard to digest

Sina Science and technology news Beijing time of August 19, the industry personage said in Friday, HP's personal system sector (hereinafter referred to as "PSG") is too large, a single one by one Asian technology companies difficult to digest.　　But if HP splits up the sector, there are potential buyers. Hewlett-Packard said in Thursday that it was considering splitting the PSG sector. According to analysts, the HP PSG sector is valued at 10 billion to 12 billion dollars. Carter Lusher, a research firm Ovum analyst Carter RASHL, said: "Judging from the size of the PSG alone, a single company cannot digest." "Sources from the banking industry say that companies interested in the PSG sector include HP's rivals in Asia, such as Lenovo and Acer.　　Another industry source said Hon Hai Precision is also one of the potential buyers.　　The current PC industry in the sunset industry is deteriorating, especially in the personal consumer market, where the popularity of smartphones and tablets has reduced demand for traditional PCs. One person from the banking industry said: "The current PC business is sheer size, the PC has become a very common commodity, and any company interested in HP's PC business is to win more market share."　　The US CONRODGA Securities (Ticonderoga Nomura) said the operating profit margin of HP's PC business was 5.7% per cent, the lowest in HP's operations, with an annual revenue of about $38 billion. The potential buyer, the world's third-largest PC maker, has 3.8 billion dollars in cash. Last year acquired a German medion company and formed a joint venture with NEC. Another person from the banking industry said: "Strategic Lenovo is indeed suitable for the acquisition of HP PC business, although the IBM PC business has been acquired, but this part of the enterprise mainly concentrated in the enterprise market, and HP PC business is the focus of the personal consumer market."　　But the person also points out that Lenovo's current focus is on integrating the Medion and NEC joint ventures. As HP's supplier, Quanta is unlikely to acquire HP's PC business because it will affect its PC customers. Another potential buyer is Samsung.　　By the end of the second quarter of this year, Samsung had 19 trillion won (about 17.7 billion dollars) in cash. "Only Samsung and Lenovo have the economic power to buy HP's PC business, but they have to take into account the compatibility of the business model," said Vincent Chan, analyst Vincent Chen Nomura, Yuanta Securities. In this respect, a Samsung spokeswoman said it was not interested in HP's PC business.　　Vincent Chen also said Huawei might be interested if HP bundled the PC and server business. Other insiders say Acer and Asustek will not have enough money to finance the deal unless HP splits up the PSG sector. In this respect, ASUS CFO Weiming said: "We do not intend to buy HP PC business, we will focus on our business." "HP competes in India for software and business servicesThe rival Tata Advisory Services (Tata Consultancy) is unlikely to enter the PC market. "It is impossible for any of India's top software companies to acquire HP's PC business," said Rishi Sahai, head of Cogence Advisors, India's consulting services company. "If you get used to the 30% EBITDA margin, it's hard to move into a new business with a few margins," Sahai said. I think HP's takeover of Autonomy will spur Indian service companies to undertake large-scale mergers and acquisitions in developed countries. Industry analysts also say that if the PC business is sold, HP's supply chain in Taiwan will be affected because new owners usually prefer new suppliers. By then, Quanta could be the biggest casualty, as its 30% revenue comes from HP. (Li Ming)