In a very Netflixian move, HP has reversed course and now will stay in the PC business.  Forbes:

This week Meg Whitman stepped forward and confirmed what many of us had known for weeks: that it made no sense for Hewlett-Packard to spin off their PC division. But in the discussion with analysts that happened after the announcement Whitman said something interesting. She said that HP had too many products and needed to focus. In effect, though she didn’t mention his name, she was saying that she believed in the Steve Jobs approach to markets –  or rather than doing a lot of things poorly, do fewer things but do them well.

HP is in a great position to re-invent itself.  A new CEO, a completely confusing product line, and a respectable pile of cash.  Jobs pulled off a similar trick with Apple in the late 90s by killing off products left and right and starting fresh with the iMac.  The question that remains is what market HP wants to excel in- are they a consumer electronics company?  Do they solely go after business and enterprise?  Is there an HP branded iPhone in our future?  I’m kidding on that last one, but some of you may remember the iPod adventure from the mid 2000s.

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