The US based IT group said an extensive evaluation had concluded that its Personal Systems Group (PSG) should remain part of the company.
"It’s clear after our analysis that keeping PSG within HP is right for customers and partners, right for shareholders, and right for employees,” said HP CEO Meg Whitman. "Together we are stronger.”
HP said it performed a data-driven evaluation to see whether the PC division would function better as a separate company. The evaluation revealed "the depth of the integration that has occurred across key operations such as supply chain, IT and procurement," the company said in a press release.
It added that PCs contribute signficantly to HP’s solutions portfolio and its overall brand value. And HP noted that the costs of setting up PSG as a separate company "outweighed any benefits of separation."
Apotheker earlier this year had proposed selling the computer division of HP to better focus the company on software solutions.
But, following its evaluation, HP said: "PSG is a key component of HP’s strategy to deliver higher value, lasting relationships with consumers, small- and medium-sized businesses and enterprise customers."
HP's PC revenues totaled 40.7 billion dlrs in fiscal year 2010.