The company added that its strategic review indicated that the supply chain and procurement hit was too much. Meanwhile, HP's PC unit performs well.
When Meg Whitman took over as CEO, she promised a quick decision on the PC division. She delivered.
Overall, HP's move makes sense--at least in the short term. Keeping the PC unit removes a lot of uncertainty for corporate technology buyers who were likely to go with vendors such as Lenovo and Dell. By eliminating that uncertainty, HP can move ahead.
HP's PC unit is profitable, but analysts noted that the business has imploded. In other words, HP couldn't sell the PC division and a spin-off wouldn't have been a boon to shareholders in its current state.