HP combines printer, PC groups

Hewlett-Packard will merge its PC division and printer division into a new organization led by Vyomesh Joshi, the current head of the printer group, the company announced Friday.

The Imaging and Personal Systems Group will still report financial performance for both PC and printers, but Joshi will now add responsibility for the PC business to his resume. As part of the transition, HP announced that Duane Zitzner, executive vice president of the Personal Systems Group, has retired.

HP has struggled to sustain the profitability of its PC business in the years following its acquisition of Compaq Computer Corp. Strong competition from Dell Inc. has kept HP from attaining the top market share position in the world, although the company is not far off Dell's lead.

In November, HP Chairman and Chief Executive Officer Carly Fiorina said the PC division had not lived up to expectations for its profitability, and that HP was looking for ways to improve profits within that group.

The printer business, however, is the most impressive division within HP. It has consistently posted the largest profits within the company, and enjoys a strong brand reputation among consumers and business customers.

A spokesperson for HP Australia said it was too early to comment on the US decision at a country level and was therefore unable to confirm whether the two divisions would merge locally.

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Tom Krazit

IDG News Service
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