HP Battered By PC Sales Slump

HP has reported concerning losses across most of its business groups as global demand for PCs continues to fall.

Revenue slipped 8.1 percent in its Q2 results this week, falling to $25.35 billion (£16.5bn), with the firm’s PC and printer business down 11.5 percent.

Net income for the three month to July 31 fell £544 million, down from £628 million the same time last year.

Down

Software revenue was down 6 percent year over year with a 20.6 percent operating margin. License revenue was down 11 percent, support revenue was down 3 percent, professional services revenue was down 8 percent and software-as-a-service (SaaS) revenue was down 4 percent.

In fact, ‘down’ seemed to be the theme-du-jour for HP’s results. There was some solace found, however, in HP’s enterprise group. The division’s revenue inched up 2 percent year over year with a 13 percent operating margin. Industry Standard Servers revenue was up 8 percent, but storage revenue was down 2 percent.

“HP delivered results in the third quarter that reflect very strong performance in our Enterprise Group and substantial progress in turning around Enterprise Services,” said Meg Whitman, HP CEO.

“I am very pleased that we have continued to deliver the results we said we would, while remaining on track to execute one of the largest and most complex separations ever undertaken.”

HP is due to split into two separate companies on 1 November this year.

The move will see HP Inc look after the firm’s PC and printing businesses, while Hewlett-Packard Enterprise will focus on corporate hardware services, encompassing the firm’s storage, server and networking units as well as its cloud infrastructure and services unit.

Whitman has resisted pressure from analysts and shareholders to sell off the company’s PC business, a move also suggested by former CEO Leo Apotheker, arguing computers were important to HP’s overall business.

Take our cloud quiz here!

Ben Sullivan

Ben covers web and technology giants such as Google, Amazon, and Microsoft and their impact on the cloud computing industry, whilst also writing about data centre players and their increasing importance in Europe. He also covers future technologies such as drones, aerospace, science, and the effect of technology on the environment.

Recent Posts

Apple Sales Rise 6 Percent After Early iPhone 16 Demand

Fourth quarter results beat Wall Street expectations, as overall sales rise 6 percent, but EU…

23 hours ago

X’s Community Notes Fails To Stem US Election Misinformation – Report

Hate speech non-profit that defeated Elon Musk's lawsuit, warns X's Community Notes is failing to…

24 hours ago

Google Fined More Than World’s GDP By Russia

Good luck. Russia demands Google pay a fine worth more than the world's total GDP,…

1 day ago

Spotify, Paramount Sign Up To Use Google Cloud ARM Chips

Google Cloud signs up Spotify, Paramount Global as early customers of its first ARM-based cloud…

2 days ago

Meta Warns Of Accelerating AI Infrastructure Costs

Facebook parent Meta warns of 'significant acceleration' in expenditures on AI infrastructure as revenue, profits…

2 days ago

AI Helps Boost Microsoft Cloud Revenues By 33 Percent

Microsoft says Azure cloud revenues up 33 percent for September quarter as capital expenditures surge…

2 days ago