Hewlett-Packard Company (NYSE:HPQ) has finally made it clear that it will be splitting its hardware from software services to trade as two different entities. This, the company says, is a move to ensure innovation and enhance shareholder value.
One segment will focus on the production of PCs and printers while the other will focus on software and corporate hardware.
As for Dell Inc. (NASDAQ:DELL), it’s not just news that the 75-year old company is splitting into two; no; it’s an opportunity to get back at the company that last year swayed many customers to its side, saying that Dell would still face financial uncertainty for an extended period in spite of its Chief Executive Michael Dell’s decision to release some of his shares at a lower price to secure $24 billion buyout.
Hewlett-Packard Company (NYSE:HPQ), which controls about 18% of PC market in the world, had argued that the uncertainty associated with the stock wouldn’t be good for customers.
Now, it’s the turn of Dell Inc. (NASDAQ:DELL) to hit at Hewlett-Packard Company (NYSE:HPQ) for the decision to split.
“HP’s decision to break apart its business is complex, distracting and appears to benefit HP and its shareholders more than its customers, which is ultimately the wrong priority,” Dell said in a statement.
Dell Inc. (NASDAQ:DELL) has gone as far as flaunting its decision to go private, saying that it’s working well for the consumers who need working and reliable solutions for their IT needs. The effect that such talks will yield is yet to be known, but it’s believed that Dell will stop at nothing to ensure that it gets market advantage from the move.
The decision by Hewlett-Packard Company (NYSE:HPQ) went down well with the investors with the stock closing 4.74% higher to trade at $36.87 yesterday.