HP in Pressure due to slowdown in PC and Laptop Demand, Revenue drop 29 Percent

HP, one of the largest computer devices companies, has been hit by the slowdown in the personal computer market. In the first quarter of the current year, the company’s personal systems segment (desktop and notebook PC) sales have declined by 29 percent. The company’s printing segment has declined by about five percent.

Market research firm IDC has reported that in the first quarter, the global PC Shipments have fallen by about 30 percent. Demand for companies like HP, Lenovo and Dell had increased sharply during Corona. The main reason for this was the increase in sales of laptops and other electronic devices due to the staff of many companies working from home. In the last few months, due to most companies calling workers back to the office, sales of devices like laptops have decreased.

HP expects revenue to grow in the second half of the current year. “The second half will be better from a consumer demand perspective,” the company’s CEO, Enrique Lores, told Reuters. The company’s revenue in the last quarter was $12.91 billion. Analysts had estimated it to be a little over $13 billion. However, the company’s net income rose to $1.1 billion, from $1 billion in the same period last year. Global shipments of PCs declined to 56.9 million in the first quarter of this year from 80.2 million in the same period last year. In the last quarter of last year, these shipments declined by 28.1 percent on a year-on-year basis. Apple’s shipments declined the most by about 40.5 percent in the first quarter.

The PC market in India grew by only 0.3 percent last year. However, this market declined by 28.5 percent in the fourth quarter from last year. This market includes desktops, notebooks and workstations. The notebook category declined by 37.8 percent in the fourth quarter, while desktop shipments increased. HP ranks first in the country’s PC market. Its market share is more than 30 percent. The global personal computer market declined by 16 percent last year. The major reasons behind this were recession, rise in energy cost and high interest rates.