Hewlett Packard, the world's largest PC maker, has announced plans to spin off its PC business and scrap its recently acquired webOS smartphone and TouchPad tablet business to focus on software and services.
According to a report by Bloomberg, HP "has been aiming to lessen its dependence on lower-margin PCs, where growth has stalled as consumers flock to tablet-style computers like those made by Apple."
This is the kind of news that you should expect on April's Fools Day.
First of all, you don't give up the No. 1 position among computer builders.
Second, HP is known for its computers and printers, not the quality of its software which is, at best, mediocre.
Third, any company (like IBM, Dell, etc.) can offer its services and there is no need to divest itself of its hardware design and manufacturing component.
Fourth, to abandon computer hardware design and manufacturing goes against the tradition and almost 100 years of history at Hewlett Packard.
Fifth, computer hardware design and manufacturing is making money for Hewlett Packard. There is no need to abandon a successful business making money for a new venture.
Finally, computer hardware design and manufacturing is such an important part of Hewlett Packard that it cannot be abandonned by the Board of directors of Hewlett Packard unless they get approval by 2/3 of the shareholders of every class in value and number.
April's Fools Day comes early this year. Or it comes for a second time this year.