HP Going It Alone in PCs Faces Tough Challenges

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Breaking off Hewlett-Packard Co.’s personal-computer unit is aimed at delivering more flexibility in facing off competitive threats. It also isolates a low-margin commodity business at a time when demand for PCs and printers is ebbing.

The splitBloomberg Terminal, announced yesterday, separates Hewlett-Packard’s PC division from the unit that makes servers, two businesses that share common suppliers such as Intel Corp.