HP Inc blames Windows 10 for drop in PC sales

CEO says Windows 10 demand isn't high enough to help HP Inc

HP Inc has blamed Windows 10 for a 12 per cent drop in its latest financial revenues to $12.2 billion (8.76 billion) year-over-year.

Dion Weisler, CEO of HP Inc since HP split into two divisions (the other being Hewlett-Packard Enterprise) last year, claimed a lack of demand for Windows 10 products has hit HP's hardware business.

"I still believe [Windows 10 is] a tremendous operating system," Weisler told investors on conference call this week, transcribed by Seeking Alpha.

However, he added: "We have not yet seen the anticipated Windows 10 stimulation of demand that we would have hoped for, and we're carefully monitoring any sort of price developments that could further weaken demand."

HP Inc sells PCs and printers, both markets that are experiencing declines in demand as the adoption of smartphones and tablets has continued to rise.

And Wiesler's claims are supported by a Gartner report last month that found a lack of Windows 10 uptake at the end of 2015 contributed to a year-on-year drop of 8.3 per cent in the PC market.

Principal analyst Mikako Kitagawa said at the time:"On the business side, Windows 10 generally received positive reviews, but as expected, Windows 10 migration was minor in the fourth quarter as many organizations were just starting their testing period."

However, Microsoft claims the operating system now runs on 200 million devices.

HP Inc reported a 13 per cent fall in its personal systems revenues which encompass notebooks, desktops, workstations and other devices taking $7.46 billion in all, compared to $8.56 billion in the same quarter last year.

It experienced a further 17 per cent fall in revenues from its printers across supplies, commercial and consumer hardware taking $4.64 billion in all, compared to $5.59 in the same quarter last year.

Weisler said the company had warned investors about the increasingly tough market conditions, saying: "We expected that. We outlined that at the security analyst meeting and we expect it for several quarters ahead."

But that did not stop HP's shares falling by 1.5 per cent to $10.66 on the New York Stock Exchange in the wake of its results.

HP Inc's results for the three months ending 31 January 2016 is the company's first financial report since Hewlett-Packard was split in two.

Analysts originally predicted that last year's launch of Windows 10 wouldcounteract the steadily decline of PC sales.

But so far, it has not helped HP, which faced an equally stormy time during its late 2015 results, and continues to face challenges selling its products to enterprises and consumers.

Weisler referenced the HP Elite X3, a hybrid mobile product showcased at Mobile World Congress this week, as an example of how he believes the company is adapting to changes in the computing market.

"The PC lines are being redrawn at the moment," said Weisler during the investor call. "We continue to take costs out of the system. We continue to drive innovation into the system, and we're not after share for share's sake."

Following its disappointing first 2016 quarter results, Weisler said the company will be examining "productivity initiatives and accelerated restructuring" in the coming months.

Featured Resources

Unlocking collaboration: Making software work better together

How to improve collaboration and agility with the right tech

Download now

Four steps to field service excellence

How to thrive in the experience economy

Download now

Six things a developer should know about Postgres

Why enterprises are choosing PostgreSQL

Download now

The path to CX excellence for B2B services

The four stages to thrive in the experience economy

Download now

Recommended

How to factory reset Windows 10
operating systems

How to factory reset Windows 10

30 Mar 2021
Windows vs Linux: what's the best operating system?
operating systems

Windows vs Linux: what's the best operating system?

9 Apr 2021
How to fix automatic repair loop in Windows 10
Microsoft Windows

How to fix automatic repair loop in Windows 10

1 Apr 2021

Most Popular

Microsoft is submerging servers in boiling liquid to prevent Teams outages
data centres

Microsoft is submerging servers in boiling liquid to prevent Teams outages

7 Apr 2021
Hackers are using fake messages to break into WhatsApp accounts
instant messaging (IM)

Hackers are using fake messages to break into WhatsApp accounts

8 Apr 2021
How to find RAM speed, size and type
Laptops

How to find RAM speed, size and type

8 Apr 2021