By Terril Yue Jones
BEIJING (Reuters) - Hewlett-Packard Co may resurrect its TouchPad as it weighs a spinoff of its personal computer arm, the head of its PC division said, suggesting HP might revive a tablet that lasted just six weeks in the face of stiff competition from Apple Inc.
HP stunned markets two weeks ago, when it announced it may shed its PC business -- the world's largest after the $25 billion acquisition of Compaq in 2002 -- as part of a wrenching series of moves away from the consumer market. Those included killing off the TouchPad tablet computer.
Now, the board of the largest U.S. technology company by revenue is expected to decide before the end of the year whether to hive off its PC arm -- which began selling the TouchPad in July -- into a separate company, considered the best option for shareholders.
Personal Systems Group head Todd Bradley told Reuters in an interview he intends to lead any standalone company created, and expects it to be a full-fledged computer maker spanning tablets, ultra-thin and all-in-one PCs.
"Tablet computing is a segment of the market that's relevant, absolutely," he said, without elaborating. He said a spinoff of the Personal Systems Group will bring the "best value" to HP shareholders for taxation and other reasons.
"My intention would be to lead it through this transaction ... and if it's a standalone public company, to lead that."
Selling the PC division to a rival such as Taiwan's Acer Inc, which acquired computer maker Gateway in 2007, or to China's Lenovo Group Ltd, which bought IBM's PC division in 2004, is not a desirable alternative, Bradley said.
"I would just say that the numbers don't support that that strategy works," he said, citing Acer reporting its first-ever quarterly loss last week.
HP has struggled in the PC market -- a high-revenue but low-margin business -- as popular devices such as Apple's iPad lure consumers away.
Bradley is on a trip to China, Taiwan and South Korea to meet with employees, suppliers, government officials and media to convince them that HP's PC business will remain robust and committed to Asian markets.
"China's obviously a critically important market for HP as well as PSG," he said.
Bradley said HP will increase investments in Shanghai, and over the next three years expand its Shanghai manufacturing base, consolidate six employee sites into one campus, and make Shanghai a regional headquarters in China for the PSG.
"Regardless of what happens, we're the largest PC company in the world. We need everybody energized, and while this isn't business as usual, we need people to go out and sell products every day," Bradley said.
Suppliers to HP PCs will remain largely intact, although the company may renegotiate and redefine the relationships.
"Unwinding the integration that's taken place within HP will be enormous amounts of work and effort, justified by the return we think we'll be able to provide to our shareholders."
Nevertheless, he said, "we will be one of, if not the largest, customers of all of our major suppliers, be it Samsung to LG to Microsoft to Intel."
The Palo Alto, California-based company is now exploring options for its WebOS software, which it acquired through the acquisition of Palm, of which Bradley is a former chief executive.
Bradley has said that a number of companies had expressed interest in possibly using WebOS as an operating system, but he gave no further details on Tuesday, saying that he is not in China to announce or even negotiate anything regarding WebOS.
(Editing by Anshuman Daga, Matt Driskill, Edwin Chan and Matthew Lewis)
Copyright 2011 Thomson Reuters. Click for Restrictions
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.