The decision by Hewlett-Packard to combine its Imaging and Printing Group and Personal Systems Group indicates the company will re-engineer both units to serve evolving consumer markets increasingly interested in digital entertainment, analysts say.The new business unit integrates HP’s Imaging and Printing Group, including its printer, imaging and supplies business, projectors and digital cameras, with the Personal Systems Group, including desktop and notebook PCs, handheld products, personal storage appliances and workstations.While some have called for HP to divest itself from it PC business, much like IBM did last month by selling its unit to China’s Lenovo Group, others said HP will reap benefits by retooling its business. “HP has long wanted to use the same retail channels, and in the last 18 months has really focused on computing and digital entertainment, which the whole world seems to be moving toward,” said Jonathan Eunice, senior analyst with Illuminata.“IBM said, ‘Let’s call it a day. We are not making money in PC business.’ HP basically said it is a business they want to be in,” Eunice said. “HP had to either argue they were in the wrong business or make adjustments in how they market things. They are optimizing business in personal computers with an emphasis on imaging and entertainment.”Roger Kay, senior analyst with IDC, said the move was more indicative of increased pressure on PC sales. “The PC business used to be the primary business for these guys (HP and IBM),” Kay said. “Anything they can do by combining the units, they could do not combining the units. What’s the game here?” Vyomesh Joshi, a 24-year veteran of HP who has served for three years as executive vice president of the Imaging and Printing Group, will lead the new unit.“There is no person better suited to lead this new organization than Vyomesh Joshi. Under his leadership, the Imaging and Printing Group has grown to be a highly profitable $24 billion business that leads the market in virtually every category in which it competes,” said Carly Fiorina, HP chairman and chief executive officer. “Applying this leadership to the newly combined organization allows us to achieve an even higher level of performance.” Duane Zitzner, former executive vice president of the Personal Systems Group, has retired from HP after 15 years with the company. Zitzner, 57, played a key role in HP’s success, Fiorina said. Technology Industry