Hewlett-Packard’s shares drop 20% after company takes new approach

Shares in Hewlett-Packard (HP) have fallen sharply on news that the company is buying UK software firm Autonomy for £7.1bn ($11.7bn) and may sell its PC business. HP’s PC business is the world’s largest, but by the end of next year, HP computers could be sold under another company’s name.
 
Analysts believe this move is due to the fact that Apple have knocked HP out of the PC, smartphones and tablet market with its iPhone and iPad products.
 
This new strategy means that HP will continue to sell servers and other equipment to business customers and side-line PC hardware in favour of more profitable software and services which will be provided by Autonomy.