Hewlett-Packard formally declared in Split, hardware business aimed at 3D printing

On the second day of Mr Jobs's Day, Hewlett-Packard, the tech giant he worked for, hewlett-packard,hp a conference call, announcing that it would split the company into HP Enterprise and HP INC's two independent listed companies. The former focuses on enterprise-class IT solutions, infrastructure, and software and cloud services. The latter will include HP's traditional two major hardware businesses, PC and print.

After the company split, the incumbent CEO, Whitman, will be CEO of HP Enterprise, and vice president of HP's PC and print business Dion Weisler will be president and CEO of HP Inc., according to Hewlett-Packard's official release. Whitman once said that the future of HP's business will focus on enterprise-class cloud services.

Another technology giant, Walt Whitman's CEO, has also announced a split in recent days. ebay's share price soared 7.5% after news of the announcement. Hewlett-Packard's shares rose 2% per cent after breaking news announcements.

Traditionally, the traditional it giants, such as IBM, sold their hardware businesses because their margins were too low or even lost. But HP's earnings, as of July 31, showed that both the PC and the print business accounted for half of the HP company, both in terms of revenue and pre-tax profits. 9.4% of the profit margin and the other business of 10.2% compared with no significant gap.

Hence the split HP INC and HP Enterprise should share HP's current market capitalisation of more than $65.7 billion trillion. This makes it very unrealistic for Lenovo and other Chinese companies to buy the HP hardware business. Although Lenovo's PC shipments have surpassed HP's, its latest earnings show quarterly revenues are no more than $10.395 billion trillion, with a net profit of $214 million. and HP Inc. 's volume difference is too large. Lenovo's acquisition of the ThinkPad and X86 server business from IBM is only a 1.25 billion dollar and a 2.1 billion dollar deal.

And the split HP INC will continue to invest in high-growth areas such as 3D printing. In the recent year, Hewlett-Packard launched the Slate and Compaq two series of tablets, and even the Android system with 21-inch All-in-one machine. HP says future hardware operations will be more mobile.

The purpose of HP's split is to merge with EMC, a cloud service, data, and equipment company focused on enterprise users.