HP Plans To Cut 25 Percent of PC Models By 2014

At HP’s annual Securities Analyst Meeting, held yesterday in San Francisco, the company’s leadership talked about the companies strategic priorities for the future and provide a detailed multiyear roadmap to turn the company around. The company said it will simplify its PC businesses by cutting a quarter of the PC platforms it sells by the end of 2014! HP’s Spectre One all-in-one PC and XT ultrabook were shown as examples of where HP’s PC designs are heading. Also on the chopping block were plans for a smartphone, which has been shelved for the foreseeable future. HP said that need to offer every kind of device, from workstations through all-in-one PCs, laptops, hybrid PCs, tablets and ultimately, smartphones, but that won’t happen in 2013!

Todd Bradley, executive vice president of Printing and Personal Systems (PPS) at HP, will detail how PPS has retooled itself to better understand and anticipate customer needs and deliver better products and solutions that leverage the entire HP portfolio. To create efficiencies from the combination of the printing and PC units, HP PPS has been focused on consolidating supply chain functions and shrinking from six sales teams to three, while reducing functional support organizations from 12 to seven. In addition, the group is focused on simplifying the business by reducing the number of SKUs in the printing business by 30 percent and the number of platforms in the PC business by 25 percent by the end of 2014. The PC group within HP PPS has been refocused around customer needs. The group also completed a major refresh of its product line with a focus on design.

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