Samsung denies plans to acquire HP's PC business

By on August 24, 2011, 4:09 PM

We've seen a few rumblings from the far east this week that Samsung might be preparing to acquire HP's PC business. On Monday, DigiTimes speculated that of HP's rival vendors, Samsung was the most likely candidate for a buyout. The site argued that most other firms simply lack the funds and flexibility to undertake an operation the size of HP's PC unit.

At least one estimate suggests that HP's PC business is worth $8 billion. We're not sure if that figure is accurate, but we can assure you it wouldn't fetch chump change. As a side note, Shaw Wu, the Sterne Agee analyst who offered that price, also concluded that Samsung was the most likely buyer as it's been trying to build a PC business since the 90s.

DigiTimes' analysis was followed by a second report yesterday that claimed Samsung recently contacted Taiwanese notebook makers Pegatron Technology, Quanta Computer, and Compal Electronics to evaluate the possibility of outsourcing notebook orders. DigiTimes' sources believe that inquiry highlights Samsung's interest in expanding its footprint.

All of Samsung's notebooks are assembled at its Chinese facilties, but if it undertook HP's operations, it would require some outside help and Taiwan's notebook production efficiency is "unmatched." Quanta chimed in to say that Samsung would have a difficult time producing 50-60 million laptops annually (Samsung moves over 10 million while HP ships 40 million).

Samsung has responded to the market speculation today, claiming that it has "no intention of taking over [HP's] personal computer business." Furthermore, it's worth noting that HP hasn't exactly confirmed plans to exit the PC market yet. Invetec, another electronics maker, believes the company is simply extending a feeler and will respond accordingly.

Update: Samsung CEO Geosung Choi has responded to the rumors: "To put to rest any speculation on this issue, I would like to definitively state that Samsung Electronics will not acquire Hewlett-Packard's PC Business. 

Hewlett-Packard is the global leader in the PC business with sales of 40 million units last year, while Samsung is an emerging player in the category and sold about 10 million units in 2010. Based on the significant disparity in scale with Samsung's own PC business and the complete lack of synergies, it would be both infeasible and imprudent to even consider such an acquisition."




User Comments: 7

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Win7Dev said:

Well this sucks. Take some perfectly decent hp laptops and throw crap(ier) parts into them and charge more. Personally I dislike samsung and just think of them as really cheap.

NTAPRO NTAPRO said:

Win7Dev said:

Well this sucks. Take some perfectly decent hp laptops and throw crap(ier) parts into them and charge more. Personally I dislike samsung and just think of them as really cheap.

What about their televisions?

Guest said:

Don't believe the first article you read. Makes you look... well you know.

aj_the_kidd said:

Win7Dev said:

Well this sucks. Take some perfectly decent hp laptops and throw crap(ier) parts into them and charge more. Personally I dislike samsung and just think of them as really cheap.

Well i guess its a good thing Samsung has no intention of taking over HP's PC Business, which you would have figured out if you read the article or even the headline properly.

Win7Dev said:

If you had the kind of day I did you'd understand why I made a mistake.

@NTAPRO about their tv's, their not that bad, but their color is a little dark.

gwailo247, TechSpot Chancellor, said:

Reporter: "Samsung, do you 'like' HP?"

Samsung: "Do you mean 'like' or 'like like'?

Reporter: "Do you 'like like' them?"

Samsung: "No, we do not 'like like" HP, but we do 'like' them, and my counsel advises me to also state that we reserve the right to 'like like' them in the future."

Reporter: "Will you be asking HP out on a date?"

Samsung: "We have no such intentions at this time...but my counsel would like to reiterate that HP is very attractive and in theory we have no problems with asking HP out on a date...just not at this particular time...we are having difficulties with our last relationship and so are not eager to date until those divorce proceedings are finalized."

Apple: "Sure, go to that **** HP."

Samsung: "YOU DUMPED ME APPLE! I can date whomever I want! Get out of my interview!"

Apple: "Fine! iPhone 5 coming in October!"

Samsung: "OUT!"

tipstir tipstir, TS Ambassador, said:

HP took a hit with HP Touchpad WebOS so now Samsung sounds like they're moving in.. Samsung HP! Sounds like a merger will be next.. Stay-tune to this site..

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