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H-P Plans to Fuse Printer, PC Units

Wall Street Journal Original article ›

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HP CEO in aplanned reorganization will merge the printer business with the PC business. It is ameasure of how far the PC business has come since Mr Hurd was made CEO 4 years ago, and after he hired Mr Bradley a former Palm CEO to shake up the PC business. Mr. Bradley has made the PC division supply chain more efficinet especially in the fast growing consumer netbook PC business, and has cut costs. Meantime the printer business under Joshi has stagnated. The PC business was merged into printer business by Fiorina in the hope that Joshi could make a difference. Hurd separated the two and put Bradley at the PC division.Now its the PC business that is taking off and its head who will try to improve the printer business. Bradley has run alean business and improved PC margins even as prices of PC's have tumbled. HP also passed Dell in PC's sold. In the quarter ending July 31,2009 HP PC sales were$8.43 billion and $386 million in earnings, accounting for 12% of profits, printer and ink were $5.66 billion and $960 million in earnings for 30% of overall profit. Hurd told analysts in aconference call that he was disappointed in how the printer unit inventory was managed, and that HP had to get some internal stuff right. The


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