“HP reported dour results for its third quarter of the year that showed the weight both of its own indecision and pressure on its core PC business,” Electronista reports. “Its revenue was down three percent to $32.1 billion, but its profit dropped a steep 91 percent, down to just $200 million. Gains in its services and software were more than offset by drops in the PC and printer businesses, each of which saw their own revenue drop two and 10 percent respectively.”
“The PC group was weighed down most by home buyers shying away. Its work PC revenue was up five points, but customers were steering away from home PCs and led to a nine-point drop in revenue for the divisions that made the Pavilion and Envy lines,” Electronista reports. “HP wouldn’t give shipment numbers, although it said the volume had grown just two percent over a year ago, with desktops up five percent and notebooks advancing just one point. It cost about $1.5 billion to shut down the webOS hardware group, HP said, and a total of $3.3 billion in overall expenses.”
Electronista reports, “HP expected its profit to recover but, in a sign of reduced confidence, decided it would now strip out most of its outlook and give only its profit expectations in terms of earnings per share. Under this view, it would see profit bounce back from about 12 cents per share to between 61 to 64 cents, but it wouldn’t say whether this would come with declining revenue.”
Read more in the full article here.
Just goes to show that without corporate IT departments forcing computers on their employees, HP would not be selling any computers at all. I use my own computer at work a MacBook Pro. But we just got two new employees and the HP notebooks that were issued to them are horrid. Cheap plasticky parts two buttons on the trackpad for right and left click and one instead of a backlit keyboard has an LED above the screen that clicks out to light up the keyboard. I’d rather quit than use one of those HP notebooks.
Somehow, I need to see this to believe it.
Yeah, I know. You’d think I would know better.
What is the make/model of that HP?
It’s true, I saw the IT guy in the server room with the HP sales guy and they were making babies and I saw the baby. – Ralph Wiggum
Innovate, Innovate. There is no other choice or you die.
“That’s easy to say; what would you do?”
All right start by making a sealed keyboard that is backlit. Make any SSD that can be plug-in so you can switch OS’s quick and make that 2 SSDs. Get 3G cell modem inside somehow. Thunderbolt. Retina display resolution.
Maybe HP should report their quarterly results in French — everything sounds better in French — since they can’t be honest and say: recent decisions we made have reduced consumer confidence in us, so we sold fewer computers, but we’re not going to tell you how badly we did because we’re in denial and can’t communicate a clear plan for our own future. Sad, and lame. RIP, HP.
HP used to make kick ass laser printers. The old LaserJet 2 and 3 models laster forever – very durable. But they went the way of Sony, producing cheaper products that damaged their reputation. If you are going to head downhill, at least maintain the quality. You may find that downward spiral leveling out.
HP is having issues with profit? What would I do to turn the company around? Oh… I’m sure you already know the answer to that question.
LOLOL!
When people realize that they don’t need to print anymore because the iPad can be so portable and carry all their photos, documents and files, they will stop buying printers. Will HP realize this in time? Naaahh
They should start doing HP iPhones. Special adaptations of Apples iPhone but with extra security features specially made for business and professional use.
Apple should buy HP. That would be the way to accelerate enterprise adoption. They could take over the server rooms in a jiff.