HP Notebook Division SaleThe HP notebook producing division is a part of the Hewlett Packard Company that the Company has said it wants to sell or spin off. It appears that HP would like to sell its entire desk top and laptop (pc) producing division. In one way, this is big news. In another way, it really isn't.This is a big deal because the Hewlett Packard Company is the largest seller of personal computers, both laptops and desktops in the world. It isn't a big deal because it isn't about to happen real soon and it will probably have little or no effect on consumers. Why HP wants to sell the PC division is simple. The division is low profit margin. It accounts for over 40% of revenue but under 25% of profits. Things like printers (and ink) and software services bring them a better return on investment. Spinning off the division means that for some reason, generally either the price isn't high enough or the original owner wants to retain some control, the original owner sets the former division up as an independent company and retains some portion (usually a controlling interest) of the stock in that company. A sale is just that although sometimes the owner retains a minority of the stock. Sometimes the sale is to another company in the same business like Acer buying Gateway but sometimes it is just to someone with money who wants it, like the sale of IBM's PC division to the Chinese. HP goal seems to be the complete sale. In both the short term and long term the effect on HP notebook buyers should be minimal. There won't be a fire sale with low price HP computers all over the place. HP will get the best price for the division if it is making good money. You should expect HP to continue to provide sales and service at the same level it has until it sells. Lenovo is the "new" IBM as far as PCs go. Lenovo supported IBM models and honored IBM warranties when it was formed after the purchase of the IBM PC division. It still markets models using the old IBM names such as the Think Pad. It isn't really any harder to get parts for old IBM models from Lenovo than it is to get equally old parts from makers that haven't been sold. The bottom line is that this should not affect your decision as to whether or not you should buy a HP notebook. If the computer is the machine you want at a price you want to pay, the proposed sale/spinoff should not affect service or warranties now or in the future. HP Notebook to buy a laptop |