HP Delivers Record Growth Notebook Sales Up 15%
HP has held onto their #1 slot in the brutally competitive PC market with a 13% lift in sales.
Notebook revenue was up 15 percent from a year ago while at the same time HP was able to lift the average selling price of their PC’s by 5%.
The company reported fiscal second quarter profits of $1.1 billion, on revenue of $14 billion.
The weakest category for HP was their consumer business, this only grew by 10% compared to 14% growth in their personal systems business and 16% growth in their commercial revenue.
Printing revenue was up 11 percent from a year ago in the second quarter with commercial gains driving the business.
Supplies revenue in the second quarter was up 8 percent. The printing unit got a boost from the acquisition of Samsung’s printer unit.
The latest set of numbers is a major turnaround for the Company who is still struggling in the gaming market.
In the past the personal-computer market has been challenged for HP with quarter after quarter of flat to shrinking sales.
Now HP is stripping share away from smaller brands such as ASUS and MSI and larger brands such as Lenovo who are struggling to deliver global profits.
Sanford C. Bernstein analyst Toni Sacconaghi noted in a recent report that “the PC market is as strong as it has been in the last several years.” That has helped HP boost the average selling price for its PCs about 5% over the past five quarters, he said.
The Wall Street Journal said HP’s printing business should reap revenue rewards from the company’s $1.05 billion acquisition of Samsung Electronics printer business, which closed last November.
That acquisition is boosting HP’s sales in the so-called A3 copier segment, a business that handles larger paper used for posters and photographic prints. RBC Capital Markets analyst Amit Daryanani expects the acquisition to add $1.4 billion to HP revenue in the current fiscal year.