HP sees desktop sales plummet
HP sold 14 percent fewer desktops in the second quarter of this year than in the second quarter of 2014, according to quarterly figures released by the company on Thursday. Notebook sales increased by 19 percent in the same period.
In numbers, HP sold 14 percent fewer desktops this quarter compared to the same period last year. Revenues from desktop sales declined 17 percent. In the same period, notebook sales increased by 19 percent, but notebook sales revenue only increased by five percent. Overall, HP’s consumer computer division, still the company’s largest division, posted sales of $7.7 billion. That is five percent less than last year. The division made a profit of $235 million.
The decline in desktop sales is not a new trend. Gartner and IDC calculated in April that the entire PC market had shrunk to 2009 levels, mainly due to a decline in desktop sales in recent years. Laptops are sold more, which somewhat compensates for the decline.
Overall, HP’s second-quarter earnings and revenue declined from the same period in 2014 in the second quarter of this year, the quarterly figures show. Profit fell by 21 percent to USD 1 billion, equivalent to EUR 896 million; revenue was down 7 percent to $25.5 billion.
In October last year, HP announced that it would split into two separate publicly traded companies. The company’s computer and printer division will keep the same name and logo, while the business division will henceforth be known as Hewlett-Packard Enterprise. The reorganization, which will see five thousand people lose their jobs, is currently in full swing. The split should be a fact in October.
In addition to the acquisition figures, HP said on Thursday that it is selling a 51 percent stake in its Chinese server, storage and technology business to Tsinghua University for $2.3 billion, a deal expected to close by year-end. The Chinese government has imposed stricter rules on the use of local suppliers. By transferring the majority stake in its Chinese operations to a local party, HP hopes to continue doing business with the Chinese government and state-owned companies. HP will retain full ownership of its Chinese software and printing divisions for the time being.