HP's CEO Refutes Michael Dell's Theory

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Recently Michael Dell wrote an op-ed for Wall Street Journal in which he suggested that companies that go for a split do so at the cost of innovation. Though advice from competitors is the last thing a company considers before taking a decision, it’s worth to know what Hewlett-Packard Company HPQ thinks of this subtle advice from Dell.

 

“Major players like IBM and Hewlett-Packard are selling off and splitting up—huge disruption at a time when long-term innovation and customer focus have never been more critical. Such moves may boost share values in the short term, but too often at the expense of real innovation” Dell wrote.

 

CNBC’s David Faber recently interviewed HP’s CEO, Meg Whitman, where he asked her opinion on the op-ed by Dell.

 

“I’ll tell you it’s quite the opposite at HP, our innovation engine is the best that it has been  in a decade and frankly separating these two companies will allow each company to focus on the innovation that is most important to their companies within an organization,” Whitman said.

 

“You have to remember printing and PCs, a third of their business is to consumers through BestBuy and major retailers across the world, the major websites and they are now going to be deeply focussed on what’s the innovation like in immersive computing, like in 3D printing, that’s going to make a difference to their business.”

 

“While on the data centres side, we are all over the software defined data centre, what is going to help CIOs for businesses of any size, reduce cost, become more agile. So, I would argue that focussing is going to lead to even more on target innovation for those customers.”

 

Shares of HP were recently trading at $39.09, up 3.89%. 

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Posted In: CNBCMedia
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