Thursday, 12 November 2015 15:07
It has happened officially. The news of the company founded by Bill Hewlett and Dave Packard being split is official. The developments made last year in October regarding the split of the company have now been confirmed as the company began official trading as separate entities on November 1.
HP will now operate as two separate entities HP Enterprise (HPE) and Hp Inc. Last CEO of HP Meg Whitman will head HPE while HP Inc. announced PC industry veteran Dion Weisler as its CEO.
Wall Street Journal reported that idea behind splitting the company was to lift the weight of slumping sales of printers and PCs from enterprise’s technology business. However the surprising news came after the split when the profitable enterprise (HPE) saw fall in its share by 5%, while HP Inc. the PC-printer supplier reported a 12% increase.
However, both the companies faces a tough challenge as the enterprise (HPE) faces rise in competition in providing cloud services while HP Inc. faces a sluggish market for PCs and printers. Wall Street Journal further reported that “both the companies are facing challenge in growth department”.
The road ahead for both companies portrays different views as HP Inc. is for dividend oriented investors while HPE is for growth oriented investors.
