Hewlett-Packard flip-flops over PCs

City A.M. Reporter
HEWLETT-PACKARD last night announced that it would keep its personal computer unit after all, following an extensive review of the high volume but low-margin business.

The retention of the PC business marks another flip-flop in strategy as the company had said earlier that its preferred option was to spin out the business.

The world’s largest technology company by revenue stunned investors when it announced in August that it is considering strategic alternatives for the group and would kill its new tablet computer as part of a major revamping away from the consumer market.

Citing deep integration of the PC group in HP’s supply chain and procurement, recently appointed chief executive Meg Whitman said the company was “stronger” with the unit.