HP Results Highlight PC Market Woes

Posted on August 23, 2018 by Paul Thurrott in Hardware, Windows 10 with 18 Comments

HP reported better-than-expected earnings today. But the firm’s CEO issued a warning on PC sales.

For the quarter ending July 31, HP posted net earnings of $880 million on revenues of $14.59 billion, both of which were strong improvements over the same quarter a year ago. And HP’s PC business is still by far its biggest, generation 9.4 billion in revenues in the quarter.

Despite this, HP—the world’s biggest maker of PCs—feels that the PC market is soft.

“We sort of still predict declining units in traditional PCs, with flattish revenue, so our [average selling prices] are growing,” HP CEO Dion Weisler told CNBC.

Worse, he also indicated that the Windows 10 sales spike would not be as strong as was the case for Windows 7, another indication that the PC market will continue to contract after several years of decline.

“I would say this Windows 7 sunset and migration to Windows 10 is providing some stimulus to the market, but it’s not quite as spiky as previous operating system transitions,” he said.

The warnings haven’t sat well with Wall Street: Investors drove HP stock down 1.5 percent in after-hours trading today.

But HP still feels that it can win in a declining market. Weisler told CNBC that “three out of four people don’t have an HP logo sitting in front of them” [on their PCs] and that HP still has “innovation to amaze them.”


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Comments (18)

18 responses to “HP Results Highlight PC Market Woes”

  1. skane2600

    “I would say this Windows 7 sunset and migration to Windows 10 is providing some stimulus to the market, but it’s not quite as spiky as previous operating system transitions,”

    This is why keeping the name "Windows 10" forever is a bad marketing strategy. Updates, even with names, are unlikely to create any stimulus.

  2. cybersaurusrex

    Windows becomes a little less relevant every day (as people rely on their mobile devices more and more). As a PC-user, I feel it. Microsoft can't offer me the entire ecosystem that I need, so I have to look elsewhere (primarily to Apple). For example, there hundreds of more apps for Apple TV than Xbox so, aside from gaming, Microsoft can't compete in the living room.

    Microsoft is falling behind (quickly) as a consumer brand. This, obviously, hurts the PC makers because they have to rely more and more on the enterprise sector.

  3. Sihaz

    Have fixed two hp pcs in the past two weeks. All in one with failing hdd and stream13 with busted windows 10 upgrade. Both required jumping through hoops in the bios to boot from the new installs. All in one fine in the end, but stream sits for a minute on every boot while it decides it can no longer boot from the uefi boot manager. Never had a machine from any other manufacturer that makes life so difficult when you want to clean install. Although I think many of their machines are pretty good, I'll steer clear for that reason alone.

  4. skane2600

    Standard comments aren't loading. Tried on Chrome and Firefox.

  5. innitrichie

    The future of portable computing is surface phone.

  6. train_wreck

    Once again, fitting promo graphic. That gentleman's facial expression exudes "I am skeptical of your attempt to positively spin your recent quarter/quarter numbers in this downwardly trending industry". ??

  7. webdev511

    I don't think the fact that Windows 7 is on its way out has sunk in yet....

  8. maglezs

    "innovation to amaze them" ha! Like printer, scanning drivers and software?

    NO thank you.

    Clean Windows PC's controlling uefi, drivers and software from Microsoft Update has a better experience. Surface is the way to go...

  9. DadCooks

    I don't want "innovation to amaze them" or me. I want a laptop that is not a sealed unit. I want replaceable batteries, expandable memory, and space for 2 SSDs.

    I want Microsoft to stop this ridiculous update cycle. How about getting the product right the first time and without features that 90% of users don't use or care about. The programmers have got to stop running the asylum with this job for life imperfect coding.

    Don't tell me what innovation is and that I should buy it. There is no real innovation out there and the computer companies are allowing a clueless generation to dictate. HP, Microsoft, and others are only selling sizzle and not a good thick steak.

    • Tony Barrett

      In reply to DadCooks:

      100% true. MS are so focused on features and ramming out 2 major annual updates to what is already a hideously complex, feature bloated OS that they've lost sight of what's important and what customers actually want, all in the name of forcing customers to the MS cloud and subscription services. MS need to take a step back, look at the market and what's happening, and stop this incessant push of 'Windows everywhere'. It's just not going to happen, certainly not in 2018 and beyond.

      MS are probably stretching themselves to breaking point with the bi-annual release cycle, and quality is really suffering. Insiders are not the answer. They don't have the skills or time to do the necessary testing, and it shows.

  10. Oasis

    "Weisler told CNBC that “three out of four people don’t have an HP logo sitting in front of them” [on their PCs]"

    3 Dells, 2 ASUS, 1 Sony and 1 old MacBook Pro, Yup, no HP's....lol

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