How HP CEO Leo Apotheker Is Running HP Into the Ground
The Death of the PC Business
What Leo Apotheker was thinking by looking to spin off his company's PC business is anyone's guess. HP is the world's top PC company, easily overshadowing all others in the marketplace. The fact that Apotheker would rather ditch the PC business than try and solve its troubles is telling—and could eventually hurt his company.
After former HP CEO Mark Hurd left the company, and the PC maker was forced to find a replacement, its future was very much in doubt. There was widespread speculation that HP couldn't find a person to run the company in the same effective manner as Hurd. And although there were some folks at HP that some shareholders thought could lead the firm into the next decade, the board eventually chose someone outside the company, Leo Apotheker.
The decision to appoint Apotheker as CEO was a surprising one. He didn't seem like an ideal candidate for a company that was heavily invested in hardware. Apotheker has little experience in that market. And yet, he is in charge at HP. And in August, he made the decision to drastically overhaul the company's operations by discontinuing the HP TouchPad, essentially dropping WebOS, and asking the board to consider spinning off the PC business. These were surprising moves, and for many industry onlookers, it looked like it could run HP into the ground. Here's a look at how Apotheker is doing more harm than good at HP.