HP to not finalize its spin-off plans until year-end 2011.

WorldWide Tech & Science. Francisco De Jesús.

Hewlett-Packard (HP) reportedly will not finalize its plans to spin off its PC units until the end of the year and is trying to revive morale among its employees. 

HP will continue to serve as the world's top notebook vendor in 2012 with total shipments of 40 million units, according to sources from upstream suppliers.

Of HP's 2012 shipments, about 50% of the volume will be supplied by Quanta Computer as HP is gradually shifting back its orders from electronic manufacturing service (EMS) providers Flextronics and Foxconn Electronics (Hon Hai Precision Industry) to Quanta and Wistron, the sources noted.

Quanta has declined to comment about its orders or clients.

The sources also pointed out that HP's action of replacing its former CEO Leo Apotheker with Meg Whitman is an indication that the company's board does not completely agree with Apotheker's decision to spin off the PC units despite Whitman saying she will continue the former CEO's strategy; therefore, whether HP will revoke the decision to spin off the PC units remains to be seen.

The spin-off announcement seriously impacted HP's sales in the US and Europe, the company's major markets. As a result HP's notebook shipments in 2011 may only reach 37-38 million units.

Source: Digitimes.

NOTE:

If you would like to know what means spin-off related to a company business, we found it on  the phrasal verbs dictionary:

1) to create something new based on something else that already exists.

2) to make part of a company into a new independent company.


spin sth off phrasal verb [ M ] PRODUCT

1. to produce a useful and unexpected result in addition to the intended result

The American space program has spun off new commercial technologies.

Every new job that is created spins off three or four more in related fields.

spin sth off phrasal verb [ M ] COMPANY

2. mainly US to form a separate company from part of an existing company

The company is trying to spin off part of its business.