Will HP merge its PC, print divisions?

Hewlett-Packard Co is considering a plan to reorganize the company and combine its printer and personal computer units, the Wall Street Journal reported.

A plan is being finalized that would put Todd Bradley, who leads HP's PC group, in charge of the combined division, the report said, citing people familiar with the matter.

An HP spokeswoman declined to comment on what she called "rumor and speculation."

PCs made up around 30 percent of HP's revenue in the July quarter, with the printing group accounting for roughly 20 percent.

The printing group boasted an operating margin of 17 percent, making it HP's most profitable division.

For fiscal 2010, HP forecast revenue growth of 3-5 percent in its PC business and zero to 2 percent in its printing group.

HP is the world's No. 1 PC maker, holding a roughly 20 percent share of the global market.

The Journal report said Vyomesh Joshi, a longtime HP veteran who leads the printing division, could potentially leave the company in the coming months.

He has been approached in recent years by other technology companies looking for a new chief executive, the report said, citing people familiar with Joshi's discussions.

Agencies

Japanese cos NEC, Hitachi, Casio to merge for mobile operations

Japan's NEC Corp, Hitachi Ltd and Casio Computer Co are in talks to merge their struggling mobile phone manufacturing operations to create Japan's No 2 handset maker, the Yomiuri daily reported on Friday.

Loss-making NEC could hive off its mobile operations and merge it with an existing joint venture between Hitachi and Casio to together develop handsets, or the three could merge their mobile phone production operations, the newspaper said without citing sources.

NEC would be likely to hold a majority of the new firm, it said. The three are struggling in Japan's saturated cellphone market and mounting development costs, said to be about 10 billion yen ($107 million) per handset. In the year ended in March, Sharp Corp controlled over one-fifth of Japan's handset market, followed by Panasonic Corp.

Agencies