HP plans to split PC business

Source: Internet
Author: User
Keywords PC HP
The News (reporter Lishiang) first gave up the webOS mobile phone and tablet computer business, and then outgoing plans to split the PC business, Hewlett-Packard to make a row of meat, once again caused the industry guessing.  This morning, IDC and Ovum, a leading science and technology research analyst, reported that China Lenovo, Acer and Samsung are strong bidders for the PC business that HP wants to divest. According to IDC and Ovum, Lenovo bought IBM's PC business in 2005, so HP's "leading bidder" is likely to come from Lenovo.  Samsung's interest in HP's PCs may have been a bid to make up for the geographical and structural deficiencies of its products. The "price" of HP's personal computer business could be as high as $12 billion trillion, the famous investment bank Credit Suisse estimates.  According to U.S. media disclosure, if the overall sale, it will be since 2002 HP acquired Compaq Computer Company, the PC industry's largest acquisition. IDC said in its report that if Lenovo and Samsung were successful, they would build a "leader" in global markets.  And now two companies have ambitious development plans, and once the takeover succeeds, the entire PC industry will immediately reshuffle.  Prospect Analysis Acquisitions If successful Lenovo will become the world's second-largest PC maker, Lenovo's purchase of HP's equivalent will help it double its share of global sales, overtake Dell, the second-biggest, and make the company profit from lower costs. "As a mature business, scale means everything, from Lenovo's point of view, to buy HP PC business can have a brand and expand market share, why not?" If Lenovo succeeds, its competition with other rivals will be significantly widened. "Lenovo's market share will soar from the current 12% to 30%, accounting for nearly one-third per cent of the global market, according to the analysis agency Gartner's PC maker's shipments in the second quarter.  The gap will be clearly widened with the second Dell (13%) and fourth Acer (11%). Gartner also predicts that if a Chinese takeover succeeds, it will help it enter overseas markets.  For now, Lenovo's income in China accounts for 48% of its overall income, but its performance in the United States is not as satisfactory, or even squeezed into the top five.  The "Snake Swallow Elephant" is on the line. However, there are also insiders to Lenovo, Samsung shot expressed doubts, they believe that for Asian technology companies, HP's PC business or too large, it is difficult to put its entire revenue bag.  Ovum analyst Rosh, a research consultancy, said it was impossible for a single company to buy its entire business on the basis of the $12 billion worth of HP's personal computer operations. But if HP decides to split the business, potential acquirers will appear, the report said. In addition to Lenovo, Samsung and other powerful competitors, China's Taiwan's macroBoth Acer and Hon Hai Precision Inc. are potential bidders. Compare the strength of the two companies HP employees: 324600 operating income: 126.033 billion US dollar assets: 124.503 billion USD pc business market value: 10.012 trillion USD Lenovo employees: 27039 Revenue: 21.5944 billion USD assets: 10.705 billion United States dollar Samsung Electronics employees: 190500 operating income: 133.78 billion dollar assets: 118.347 billion US dollar Acer employees: 7757 operating income: 19.978 billion US dollar assets: 9.635 billion dollar latest trend HP shares lead Moody's "insult" Beijing  This morning, tech stocks surged in early trading in the U.S. stock market in Friday, but the High-tech sector fell slightly on the back of a sharp drop in HP's share price. On the whole, HP's share price went low in Friday, ending at $23.6 trillion, down 20.03% from the previous trading day, its biggest-ever drop since the 1987-year crash.  For the past 52 weeks, HP's share price has been at a minimum of $22.75 trillion, up to $49.39. Moreover, Wall Street does not seem to be bullish on these new initiatives.  Rating agency Standard Poole today announced that HP's spin-off of the PC business would have a huge financial impact, and has put HP and its subsidiaries are now "A" Corporate credit rating and advanced unsecured rating and "A-1" short-term ratings on the negative watch list. Moody's also warned in Friday that it would downgrade HP's corporate rating from "stable" to "negative".
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