HP sales drop 21.7% to $12.9 bn as PC demand dips

PC Inc. has reported revenue of $12.9 billion (–21.7 percent) in its fiscal 2023 second quarter as demand for PC drops significantly.
HP retail store London“We are well-positioned to win in our markets and drive long-term sustainable growth as we make continued progress against our Future Ready plan,” Enrique Lores, HP President and CEO, said in its earnings report.

The latest report from Gartner showed that spending on devices that include PCs and laptops will drop 4.6 percent to $684.342 billion in 2023.

The latest Canalys report said PC shipments (desktops, notebooks and workstations) in the United States and China fell 28 percent and 24 percent, respectively, in the first quarter of 2023.

In the United States, notebook (including mobile workstations) shipments fell 31 percent to 11.4 million units, while desktop (including desktop workstations) shipments dropped 28 percent to 2.7 million units in the first quarter of 2023.

In China, desktop shipments dropped 28 percent to 2.8 million units, while notebook shipments fell 22 percent to 6.1 million units in the first quarter of 2023.

How HP performed?

California-based HP has generated revenue of $8.2 billion (down 29 percent) from Personal Systems with a 5.4 percent operating margin. Consumer PC revenue was down 39 percent and Commercial PC revenue was down 24 percent. The number of PC units was down 28 percent with Consumer PC units down 34 percent and Commercial PC units down 23 percent.

HP has generated revenue of $4.7 billion (down 5 percent) from Printing  business with a 19 percent operating margin. Consumer Printing revenue was down 19 percent and Commercial Printing revenue was up 5 percent. The number of Printing units was down 4 percent, with Consumer Printing units down 5 percent and Commercial Printing units flat.

HP said it expects second-half revenue to be higher than the first half, even though the year-on-year comparison will still be negative.