HP changes its mind and does love PCs after all -

Megacorporation Hewlett Packard has decided that it will stay in the PC business after all, showing signs of sanity at last.

Leo Apotheker, the former CEO of HP had decided that getting rid of the PC business was a good thing, but after a review of the situation, HP has decided to stay in the business after all.

The premature decision to announce it didn't want to be in the PC business any more has caused some angst amongst its corporate customers.

A spin off would have cost HP a lot of money and new CEO Meg Whitman has decided that, after all, and going with the flow, selling PCs is still important to its business.

In a statement, Whitman said after lengthy analysis that keeping the PSG with HP is "right for customers and partners, right for shareholders, and right for employees".

"HP is committed to PSG, and together we are stronger," Whitman said. That's exactly what the UK PSG chief said about a week after Apotheker announced his SAP-like plans. 

Apotheker's premature announcement also somewhat skewed its relationship with the supply chain, with Taiwanese partners feeling, with some justification that they had been left in the lurch.

Corporate customers did not want to be left in the lurch and were forced to start talking to Dell Inc.

In hindsight, and even at the time, the decision to spin off the PC was quite remarkable and could even be described as extraordinary.

Good-news knows what Intel thought. Well, actually we know what Intel thought. It thought HP was crazy, crazy.

Intel's Otellini recently advised HP that it would be a very silly thing indeed to flog off its PC business. He hinted HP might have some trouble with its printer business, thanks largely to digital imaging.

Seems like HP has come to its senses. Or Intel's.