HP’S COMMUNICATIONS & MEDIA GROUP NOW BELONGS TO SERVICES, AS PURSUING HIGHER-MARGIN SERVICES GAIN PRIORITY - Sponsored Whitepaper

Author: Suresh Joseph, Senior Analyst Published: 08.19.11

Transformation initiatives launched to drive higher revenue growth and margins

Hewlett-Packard reported third quarter net revenue of $31.2 billion, up 1% from the same quarter last year, and announced various transformation initiatives around reporting structure, discontinuation of WebOS and a potential spinoff of its PC division to drive higher growth and margins going forward.

These transformations reflect HP's strategic turnaround away from consumer products and toward becoming a supplier of enterprise solutions and services. While the demise of WebOS was influenced by the dominance of Apple in the tablet and smartphone segment, lower profitability and severe commoditization has forced HP to consider spinning off its PC business.