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Carly Fiorina: Merging of HP and Dell PC business would make sense

Posted on Thursday, February 07 2013 @ 12:59:39 CET by

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Former HP CEO Carly Fiorina was interviewed on CNBC yesterday afternoon, she commented about the PC market, HP's PC unit and Dell's move to go private. Responding to a question whethre the PC is dead, Fiorina said she doesn't think the PC is dead, but that she believes that the PC business is ripe for consolidation. She even suggested that a combination of HP's and Dell's PC business would make sense. Full details at Barrons.com.
Asked about rumors yesterday that the company might be considering a break up, or spinning-off its PC unit, Fiorina observed that Dell‘s (DELL) decision yesterday to take itself private presents the possibility of HP combining its PC business with Dell’s:

I have always come down on the side of saying HP is more powerful, more valuable together. But certainly I have said that HP is a point now where they should be considering every alternative. We got so much synergy out of our supply chain, out of our customer relationships. However, the times have changed. One thing that has changed is that HP has had two failed acquisitions, Hp has milked its product line for too long. The market that HP serves has changed dramatically because the PC business is now a shrinking business not a growing business. Potentially you could combine and HP and a Dell PC business. Lenovo is now the big competitor. And because of the milking of these product lines in the past, they don’t have an iPad, they don’t have a product for where the market is going, which is mobile.



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