Update: In a reply to the news doing rounds of Samsung eyeing HP's PC business, the former's CEO, Choi-Gee stated that, “I would like to definitively state that Samsung Electronics will not acquire Hewlett-Packard's PC Business. Hewlett-Packard is the global leader in the PC business, while Samsung is an emerging player in the category. Based on the significant disparity in scale with Samsung's own PC business and lack of synergies, Samsung is not interested in the acquisition.” 

PC business down...

PC business down…

Source: Agencies

HP recently announced their decision to shut down their tablet and phone business and focus on WebOS development. There’s also a good chance that HP will be wrapping up their PC business in the weeks to come. The plan may be to spin off a new branch, company or even sell it off to interested parties. According to Digitimes, Samsung is in touch with its OEM notebook manufacturers, Pegatron, Compal and Quanta to try and work out outsourcing of manufacturing processes. Currently, Samsung manufactures its own notebooks and there have been talks with OEMs, but things haven’t progressed. This decision to outsource manufacturing might have happened, keeping in mind expansion of the business.

Samsung will automatically become the largest PC manufacturer if they go ahead

Samsung will automatically become the largest PC manufacturer if they go ahead

All these talks and plans for expansion leads us to believe that it might be to accommodate HP’s massive business. HP’s PC business, this year involves some 40 million units. If Samsung is to take over, there has to be some preparation in place to take on the additional orders. HP’s PC business is the largest in the world, whereas Samsung has a much smaller slice of the market. Samsung, on the other hand manufactures many of the components used in the PCs and notebooks that it sells. Getting a hold of HP’s business would mean that they would make their product lines much more efficient and be able to cut costs drastically, while fueling both their PC, as well as their component manufacturing business.

Publish date: August 25, 2011 5:02 pm| Modified date: December 18, 2013 8:23 pm

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