HP Inc records best PC sales growth since XP refresh

Notebooks defy decline, but business printer shipments fall 8%

A 10% boost in PC sales, against a backdrop of industry decline, helped HP Inc hit $12.7 billion in revenue for its first quarter of 2017.

Sales of HP Inc's notebooks, desktops and workstations pushed the firm's Personal Systems division to $8.22 billion in the three months to January 2017, up from $7.46 billion in the same period last year.

Notebooks jumped 16%, though desktop growth remained flat. However, the increase comes after analyst house Gartner recorded a fifth consecutive year of plummeting PC sales in 2016, when shipments fell by 6% compared to 2015.

HP Inc CEO Dion Weisler said in an earnings call, transcribed by Seeking Alpha: "As a more nimble company, we've been able to accelerate our strategy, and we're now firing on all cylinders.

Advertisement - Article continues below
Advertisement - Article continues below

"A perfect demonstration of this is in Personal Systems, where yet again for the third consecutive quarter the team delivered exceptional results."

He added: "The last time we saw this level of revenue growth was in 2014, triggered by the [Windows] XP refresh cycle."

However, Catherine Lesjak, HP Inc CFO, admitted that the strength of PC sales in Q1 (in part thanks to Black Friday and Christmas) could result in a "more than normal" decline come Q2.

She added: "The increased cost of components [for PCs] ... could have a more significant impact on demand that we've assumed."

HP Inc's other main source of revenue, printers, fell by 3% year-on-year to $4.5 billion.

Business printer hardware in particular saw a significant drop, falling 8% year-on-year and a huge 20% from the previous quarter.

Advertisement - Article continues below

However, Weisler said HP Inc's $1 billion acquisition of Samsung's printing business is "on track" to close in the second half of the year, which it expects will improve the state of its A3 printer division.

"We made great progress in stabilising the business," Weisler added, saying a focus on security, citing recent products like HP Sure Click, is helping customers deal with threats like malware.

Featured Resources

What you need to know about migrating to SAP S/4HANA

Factors to assess how and when to begin migration

Download now

Your enterprise cloud solutions guide

Infrastructure designed to meet your company's IT needs for next-generation cloud applications

Download now

Testing for compliance just became easier

How you can use technology to ensure compliance in your organisation

Download now

Best practices for implementing security awareness training

How to develop a security awareness programme that will actually change behaviour

Download now



Best printers 2020

18 Dec 2019

Lexmark C3224dw review: Cheap, but not necessarily good value

14 Dec 2019

Xerox VersaLink C500DN review: Appy days

3 Dec 2019

Choose the right colour printer for your business

29 Nov 2019

Most Popular

Microsoft Windows

What to do if you're still running Windows 7

14 Jan 2020
operating systems

17 Windows 10 problems - and how to fix them

13 Jan 2020
data governance

Brexit security talks under threat after UK accused of illegally copying Schengen data

10 Jan 2020

Dell XPS 13 (New 9300) hands-on review: Chasing perfection

14 Jan 2020