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Wednesday, 12 August 2020

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01 March 2013

HP profit falls 16%, beating super-low expectations

It's hard enough being a PC company in a tablet and smartphone world, but Hewlett-Packard isn't doing much to help itself.

Sales fell in every HP business unit last quarter -- save one measly 1% gain in its relatively tiny financial services division.

HP is trying hard to be about more than just PCs and printers, which are quickly becoming obsolete. But the path to reinvention has been slow.

"HP's turnaround will not be linear," CEO Meg Whitman warned on a post-earnings conference call. It's a sentiment she's repeated often.

HP hasn't been able to make major inroads in the mobile market, which is dominated by Apple and Android developer Google. Revenue in HP's services business fell 7%, its enterprise group declined 4%, and software sales slipped 2% in the company's first quarter, which ended in January.

Whitman discussed "tectonic shifts" in the personal device market, citing those issues as a major focus for HP.

Meanwhile HP's two legacy businesses continued to suffer: Sales of consumer PCs fell by 13% over the year, and the printing unit fell by 5%. 



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