1) There's a vast amount of capital tied up in that division - capital that could be spent on more profitable opportunities 2) By giving shareholders one share in "HP PC Group" plus one share in "The rest of HP" then those shareholders that don't want to have their money tied up in a company making commodity desktops can sell out, whilst still having a bet on the rest of the product lineup 3) Whilst PSG might be profitable now, I personally see the margins just getting squeezed to the point where it won't be profitable. IBM did the right thing by getting out (IMHO). Dell's going nowhere with their PC business - they're trying to find other markets. 4) I don't live in America, so if I was a shareholder, I really wouldn't care about the "something's wrong with America" thing - I'm trying to decide whether I should put my money in HP or Google or... <other company>. So HP's got to respect the fact that the owners have choices on where to put their money
Cheers Ken -----Original Message----- From: Ben Scott [mailto:[email protected]] Sent: Friday, 19 August 2011 8:09 PM To: NT System Admin Issues Subject: Re: [OT] The infection continues to spread (HP) On Fri, Aug 19, 2011 at 12:02 AM, Ken Schaefer <[email protected]> wrote: > It makes lots of revenue, but very little money. PSG has ~5% margin, > which will probably only fall further in the future. 5% of money is still money. 5% of a very large amount of money is still a large amount of money. Again, I don't get it. Not the math, not the buzzwords -- what I don't get is the *mindset*. "It's our largest product line. It's profitable. Get rid of it!" I suspect this is one of those "There's something wrong with America" issues. Our priorities are all jacked up. ~ Finally, powerful endpoint security that ISN'T a resource hog! ~ ~ <http://www.sunbeltsoftware.com/Business/VIPRE-Enterprise/> ~ --- To manage subscriptions click here: http://lyris.sunbelt-software.com/read/my_forums/ or send an email to [email protected] with the body: unsubscribe ntsysadmin
