HP announced its revenue fell 2.1 percent to $14.3 billion during the third quarter of fiscal 2020.
HP has generated 72 percent of the $14.3 billion revenue from personal systems business, while the balance 28 percent is from printing business.
HP generated 51 percent of its revenue from the sale of notebooks, 18 percent from printing supplies, 15 percent from desktops, 6 percent from workstations other than personal systems, 5 percent from printing commercial hardware and 5 percent from printing consumer hardware business.
HP relies on Americas for generating 44 percent of its sales. 33 percent of HP’s global sales come from EMEA. Asia Pacific region contributes 23 percent of the total revenue of HP. HP competes with Dell, Lenovo, Apple, among others, in the laptop business.
“We’re leveraging our leadership across consumer and commercial markets to capitalize on opportunities – from the essential role of the PC in an era of remote work and school to the rise of subscription-based business models to enable greater flexibility,” Enrique Lores, president and CEO of HP, said.
HP’s Personal Systems revenue rose 7 percent to $10.36 billion.
Commercial revenue decreased 6 percent. Consumer revenue increased 42 percent. Total units were up 11 percent with Notebooks units up 32 percent and Desktops units down 30 percent.
HP said revenue was up 30 percent for notebooks, down 29 percent for desktops and down 30 percent for workstations. The change in mix reflects the strong demand for notebooks, mainly in Chromebooks from the educational and consumer markets, respectively as the shift to working and learning from home continues.
HP said it improved leadership in both personal systems and print. HP’s personal systems delivered growth in revenue, profit and share. HP delivered record unit shipments in Q3. The PC is more essential to daily life than ever and PC use is up more than 20 percent since Covid-19 emerge.
“We are empowering remote workers and students with the ultimate office and learning experiences at home. This is fuelled by a range of innovations that are keeping people connected, collaborative and secure,” Enrique Lores said.
Printing revenue fell 20 percent to $3.933 billion.
Total hardware units were down 2 percent with Commercial hardware units down 32 percent and Consumer hardware units up 3 percent.
“We are making investments, especially in digital, which will help customer, partner and employee experience in the quarters and years to come,” Enrique Lores said.
HP said the shift to remote work and learning drove an uptick in home printing. HP noticed an increase of Ink usage versus its original target. HP achieved a strong growth in HP’s smart app users with mobile downloads up 70 percent. HP launched HP ENVY printer with a family-centric feature set.
HP expanded Instant Ink subscription business, growing subscribers double-digit. HP expects to surpass 8 million subscribers by the end of the fiscal year.
HP is connecting its Instant Ink and managed print service systems to take advantage of the work from home trends. HP in Q3 began rolling out the first phase of centralized billing for commercial employees, printing from home.
