Home > Latest News > HP Finally Gets A Lift In PC Sales Printers Still a Problem With A Consumer Subscription Model Tipped

HP Finally Gets A Lift In PC Sales Printers Still a Problem With A Consumer Subscription Model Tipped

HP who has been struggling in the PC market is finally seeing an uplift in overall sales, with their first increase in nearly two years, consumer PC’s is still a problem for the US Company.

The global PC maker who has also struggled with management churn, delivered a 3% increase in overall revenues in the second US quarter with revenues climbing US$8.43 billion which was up on what analysts were tipping.

The news was not good in their printer division where sales fell 8% to $4.37 billion as more businesses saw employees working from home, with less demand for printers in the office. The company introduced a subscription plan for printers earlier this year in the B2B market, which HP management claim has been seeing success.

A similar plan for consumer-oriented computers is being explored, with retailers looking from trailing revenue from recommending a subscription plan.

HP sales have been slumping since May 2022 with retail consumer sales still a problem for HP as brands such as Lenovo strip share at retailers including JB Hi Fi who are witnessing an uptake in demand for notebooks with a big uptake tipped with the launch of new AI machines in the 1st quart of the 2025 financial year.

Overall, the PC market had seen a historic decline during the last two years now brands are moving to launch new PC’s especially models featuring the new Qualcomm Snapdragon Elite processors.

In the first quarter, shipments picked up 1.5% according to o IDC this was the first increase since the end of 2021.

AI PCs, such as those Microsoft Acer and Lenovo unveiled last week during a Microsoft conference will drive the market with HP Chief Executive Officer Enrique Lores claiming that the new platform will make up 10% of HP’s market

The financial impact will be “much more relevant” in 2025 and 2026 as HP expects the number to climb to about 50% of shipments three years after launch, he  claimed.

The stock has gained 9% this year, with the stock closing at $32.80 in New York last night.

In comparison Dell has more than doubled in value this year due to demand for their AI-capable servers.

According to Bloomberg HP has failed to receive any similar “AI pixie dust” to boost its valuation, though adoption of the new AI PCs could change that, wrote Toni Sacconaghi, an analyst at Sanford C Bernstein, before the results were released.

“Along with growth in shipments, AI PCs are also expected to carry higher price tags, providing further opportunity for PC and component makers,” wrote Jitesh Ubrani, an analyst at IDC, said in April.

For the fiscal third quarter, HP projected profit, excluding some items, of 78 cents to 92 cents per share. Analysts, on average, estimated 85 cents, according to data compiled by Bloomberg.

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