HP Remains Dedicated to its PC Business amidst 8% Sales Decrease
HP Reports Q1 Earnings: Whitman Emphasizes Strength and Focus on Innovation
Hewlett-Packard (HP) has reported its first-quarter earnings for the fiscal year 2015, with CEO Meg Whitman expressing optimism about the company's future and reiterating her belief in HP's ability to remain a dominant force in the IT industry.
During a conference call with investment analysts, Whitman highlighted the company's most valuable franchise in IT and emphasized her strong belief in HP's strength when kept together. She characterized the quarter as showing "some improvement," citing new programs and disruptive innovations as potential help for the company.
The company's Personal Systems unit, which includes desktop and notebook computers, saw a decline in revenues. The unit reported an 8% year-on-year decline in revenues, reaching $8.2 billion. Desktop shipments shrank by 5%, and notebook sales dropped by 10%. However, HP maintained its position as the world's leading PC maker, according to Whitman.
The decline in revenues was also seen in HP's printer business, which reported a 5% decrease, amounting to $6.2 billion. Commercial sales in the Personal Systems unit decreased by 4%, while consumer sales declined by 13%.
Whitman stated that HP will focus on mobile platforms and alternative PC form factors in the future for the Personal Systems division. The name of the person who will spearhead this focus was not specified during the conference call.
HP's Enterprise Services division, which includes server, network, and storage equipment, also saw a 7% decrease in revenues, reaching $6.3 billion. Sales for HP's Enterprise Group, which includes these divisions, decreased by 4% to $6.9 billion.
Despite the declines in various divisions, HP reported sales of $28.4 billion for the three months ending 31 January, down 6% year-on-year. However, the reported sales figure beat analysts' expectations.
Whitman denied any plans to spin off or divide Hewlett-Packard, emphasizing the company's great brand, scale, distribution, go-to-market collaboration, and R&D assets. She reiterated that customers want Hewlett-Packard to remain together, as per Whitman's assertions.
In conclusion, while HP faced challenges in its first-quarter earnings, Whitman remains optimistic about the company's future and is focusing on innovation and new strategies to drive growth.
