The behind-the-scenes of HP's spin-off of PCs: the original unintended

Changjun August 19, Hewlett-Packard announced that it would explore the spin-off or sale of its personal computer business, including abandoning the sale of smartphones and tablets based on the webOS mobile operating system. Hewlett-Packard's shares fell 6% on the day after news was announced. This is the second time in Hewlett-Packard's history, because of "the situation forced" to divest core business.　　The previous time, in 1999, HP incorporated the unit of measurement equipment into Agilent. HP's PC business earned 567 million dollars in the fiscal quarter ending July 31, but its revenues fell 3% to $9.6 billion a year. After the break-up, HP will reduce its revenue by about One-third.　　But this is not the main problem that Lee is facing as HP's new CEO, and the bigger question is how HP will be reborn as the overall profit margin increases after the break-up. Reinventing itself is clearly not the intention of Lee Ai. On the day of March 14 this year, when Hewlett-Packard's new global Strategy was released, he said, "This is a rumor that I can't stand," in the face of media questions about HP splitting up its PC business. For Lee Ai, the "beauty" of HP's CEO position lies in the size of HP, which is an integral part of HP's new strategy of "winning All".　　In the direction of the CEO's carefully constructed "HP-wide transition to mobile internet and cloud computing", Hewlett-Packard will include servers, PCs, mobile terminals, printers and software, including a full range of product architecture to the cloud computing platform, and to this end, he also strives to enhance the importance of software in order to open up the connection between enterprises and individual consumers. The HP board has been trying to reshape HP before Li Aicho took office.　　In Hurd, Hewlett-Packard bought the service consultancy outsourcing company EDS for 13.9 billion dollars, then acquired the network equipment manufacturer 3Com and the intelligent terminal maker Palm. In the past some time, the development trend of IT industry is entering the "vertical integration" stage, the old rival IBM in this domain name is already very loud. HP has completed a number of large acquisitions, including EDS, for the software business, but has not changed its pc-based and hardware business sales model. HP, a PC maker, has struggled to keep up with Apple's move to newer types of mobile devices.　　In the eyes of investors, this may mean that owning the industry's longest product line and the reputation of producing the world's largest computers does not guarantee HP a dominant position in the consumer and enterprise markets. June 29, Lee Ai said: "From HP's global strategy, our strategy covers all products and services, from consumer products to enterprise-level products, from the rapid growth of emerging markets to the current mature market in the growth of the obvious market segments, we can all cover." "At the time, he was leading HP's global executive board to meet with Chinese government dignitaries and key clients, and to launch a new research and development Center in Beijing, Tianjin, Shanghai and Chongqing, to enable cloud computing solutions, and to build a large functional park." At that time, there was noSigns that HP's PC business has been marginalized. Decisively turn things into unpredictable directions. When Hewlett-Packard's new tablet Touch-pad did not achieve the expected success in July, Li Aicho said he was not satisfied with the performance of HP's tablet and smartphone business. He admits he has been analyzing market data and trends for some time before. Data show that the HP Personal Systems Division 2010 operating profit rate of 5.4%, less than Apple Mac-intosh computer 15% profit margin half. The company's operating profit rate was 11.7%.　　A lot of money must be invested in order to compete for dominance. Li Aicho knows that even if Hewlett-Packard has both software and hardware capabilities, it can only increase the profit margin of the PC business by one or two percentage points, still cannot change the whole industry situation. Directors are clearly more willing to put money into more valuable sectors, such as business units. From the perspective of enhancing enterprise-level business competitiveness, Li Ai has the support and trust of the board of Directors.　　That may be the only way Mr Lee will be able to deliver on his goals to the board and investors: 7 dollars a share by 2014. At this point, Hewlett-Packard announced $10.25 billion to buy British software company Autonomy Corp., seeking further access to more profitable corporate data analysis operations. At the same time interrupt Touchpad and webOS handset business.　　Since then, HP will focus on achieving higher profit margins on the software and services needed by companies. The PC business, from quantity to quality, is not a bad thing for HP's PC business. A few years ago, HP had beaten Dell to the top of the PC field. However, according to Credit Suisse forecasts, by 2015, tablets will account for 40% of the total number of PCs, sales reached 120 billion U.S. dollars, and half of the sales will be occupied by Apple.　　This is a depressing prediction for HP, but it does not mean that HP will be completely on the path to IBM, which sold its PC business to Lenovo Group in 2005 and started a new industry change. Lei, China's HP marketing director, said: "Different companies have different ways of development, Hewlett-Packard will have its own unique direction, but the overall is to profit margins and higher value-added areas of the development." ”