HP is to keep selling PCs after having previously said it was considering selling off the business.
"HP today announced that it has completed its evaluation of strategic alternatives for its Personal Systems Group (PSG) and has decided the unit will remain part of the company," it said in a statement.
"HP objectively evaluated the strategic, financial and operational impact of spinning off PSG. 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 Meg Whitmanm, HP president and chief executive officer.
"HP is committed to PSG, and together we are stronger."
Revenue from PSG totalled an incredible $40.7 billion for the financial year 2010 - making it even more incredible that HP was thinking of spinning it off to concentrate on services a la IBM.
Whitman previously confirmed that the company aimed to make a decision about whether or not to spin off its PC manufacturing bythe end of October.
Her predecessor, Leo Apotheker, had said that HP was considering moving the PC unit into a separate business or selling it off entirely, but wasn't necessarily going to make the call until the end of the year.
The CEO had previously said she was "open minded" about the options for the PC unit.
HP also said in August that it had decided to stop making hardware for the webOS operating system, less than 18 months after buying Palm.