The HP Split

Those wondering how the HP split might shake out should read this piece in Bloomberg today. In summary, HP’s PC group just lost some of its pricing advantage, as the servers and other business-oriented gear are going with the new Hewlett-Packard Enterprise company. HP is currently Intel’s largest customer, but that will change as the two primary hardware lines are separated. (HP’s server gurus have been working on a competitive line using Applied Micro chipsets, so that ranking might eventually have been in jeopardy either way.)

On the other hand, given HP’s deservedly stodgy reputation in tablets and handheld PCs — despite, or perhaps because of, its acquisition of Palm in 2010 — the shakeup could enable the new HP Inc. to focus on trendier designs for the mobile market.

What’s not clear is whether each group will retain a certain number of chip designers. This is an area of strength for Apple, and HP Inc. will need to ensure it has the internal talent to advance in the hypercompetitive PC space.

This entry was posted in Hot Wires, Laying It Out and tagged , , , , by Mike. Bookmark the permalink.

About Mike

Mike Buetow is editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He is also vice president and editorial director of UP Media Group, for which he oversees all editorial and production aspects. He has more than 20 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow