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HP GM: HP Remains Committed To PC Business

By Steven Burke
August 22, 2011    11:30 AM ET

Page 2 of 4

The form email that HP provided partners features a reassuring tone and emphasizes strong support from HP's leadership in the PC business. The email states:

"Having now heard directly from Todd Bradley and other members of HP’s senior leadership team, I can tell you that HP remains committed – now more than ever – to driving growth of its PC business. A $42 billion business, PSG is the largest PC business in the world with #1 market share and profitability in the PC industry worldwide.

"HP is not taking its foot off the pedal now and will continue to drive leading innovation across its PC portfolio moving forward. You also can expect HP to continue the company’s strong and solid history of taking care of you, its valued customer. You should absolutely feel comfortable and confident in buying HP just as you always have, despite the confusion HP’s competitors might be stirring."

HP solution provider partners said they were shocked by last Thursday's news that its board of directors had "authorized the exploration of strategic alternatives" for PSG business. That includes looking at a broad range of options including "a full or partial separation of PSG from HP through a spin-off or other transaction."

At the same time, HP announced that it plans to discontinue operations for webOS devices including its eagerly awaited Touchpad tablet and webOS smartphones. PSG plans to "wind down webOS device operations" during the fourth quarter, said DiFranco.

"While our team created a well-respected software platform, and HP sees long term promise and value for you from the webOS operation system and the ecosystem around it, webOS devices did not gain market traction as we had hoped," wrote DiFranco. "The significant burden to HP's business to invest for scale in the business underscored the depths of the challenges for webOS."

"For some of you that had begun building mobility practices, I realize this decision raises many questions for you," said DiFranco. "Please know that we are committed to addressing those questions and helping you during this period of transition."

HP's "leadership team remain committed" to the PC business and the products it sells, and most importantly to you, our valued channel partner," said DiFranco. "I look forward to traveling on this journey with you and will continue to keep an open dialogue with you along the way. In the meantime, I encourage you to reach out to me and the other channel leaders with any questions. "

NEXT: DiFranco's Full Letter To Partners On 'PSG Transformation'

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