Consumers Dump HP Notebooks As Sales Slump 22%
Overall revenues have also fallen for HP whose CEO Meg Whitman was in Australia trying to drum up business for their struggling enterprise business which is set to be split from their struggling PC and printer business.
The company who is facing intense competition from Lenovo in the Australian consumer PC market said its net income for the quarter, which ended July 31, fell to US$900 million, from US$1 billion, in the same period last year.
Net revenue fell 8 percent, to US$25.3 billion, from $27.6 billion a year ago.
HP made a profit of $854m, a 13 percent decrease on the $1.01bn last year in the same quarter.
The firm’s PC business saw revenues fall 13 percent, led by a huge 22 percent decrease in consumer sales revenue. Analysts say this is not surprising as the Company is struggling in both the tablet and notebooks with brands such as Lenovo and Acer taking share.
Even key OS partner Microsoft is stripping sales away from HP with their Surface range of PC’s.
Enterprise sales were down nine percent, and the printing unit saw revenues fall nine percent.
SCEO Meg Whitman attributed the fall in sales to Windows XP in the enterprise market, and Windows 10 in the consumer world.
“In commercial, we had a tough compare with the Windows XP refresh cycle. And in consumer, we faced slightly higher channel inventory levels as customers paused purchasing decisions in anticipation of the Windows 10 launch,” she said.
The general decline across the company comes just a few months before HP is officially split into HP Inc. and Hewlett Packard Enterprise.
The split is set to be in place by 1 November, and HP’s management hopes that it will allow each company to focus on its strengths and achieve more organic growth to turn both firms’ fortunes around.