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Hurd: PC Business Is Key Pillar For Hewlett-Packard

Hewlett-Packard president and CEO Mark Hurd said the PC business is a key pillar of HP's goal to become the leading provider of enterprise technology.

Not only is HP's personal-systems portfolio a key component with customers, but it provides leverage with suppliers of components who source its higher-margin hardware businesses as well.

"I do believe the PC business brings leverage," Hurd said, speaking at HP's annual analyst meeting in New York for the first time. Hurd's remarks were noteworthy, given his known distaste for PCs at his prior employer NCR, which got out of the PC business during his tenure there, and given key rival IBM's decision last year to sell off its PC business to Lenovo of China.

Noting HP's notebook PC business grew 42 percent in its most recent fiscal year ended Oct. 31, Todd Bradley, executive vice president of the company's Personal Systems Group, said HP's PC business is twice the size of Lenovo, three times that of Acer, and it is gaining ground on Dell.

"Clearly, we are in a hypercompetitive marketplace," Bradley said. "We will drive world-class cost structures and processes to continue to drive profitable growth in the business. We are not planning to buy share at the expense of profitability, but to grow both simultaneously."

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