HP struggling to grow revenue in India

Enterprise IT vendor HP is struggling to grow its revenue in India.

During the recent analyst meet, HP said that it experienced solid growth in China, led by a double-digit increase in the Enterprise group, partially offset by weakness in Japan and India.

APJ revenue increased 1 percent to $5.3 billion.

HP does not share India specific revenue and growth details.

The company said its revenue from Americas dipped 1 percent to $12.3 billion. Out of this, the U.S. was approximately flat on the back of double-digit growth in personal systems. HP revenue from Brazil in the last quarter grew moderately while other countries in the region declined.

EMEA revenue increased 5 percent to $10 billion, driven by recovery in mature western economies, partially offset primarily by significant weakness in Russia.

HP divisions

HP said its Personal Systems revenue rose 12 to $8.6 billion. Commercial sales grew 14 percent with consumer sales up 8 percent and strength broadly across all of the regions outside of pockets of weakness in Russia and China. Shipments grew approximately 13 percent with growth in both consumer and commercial.

HP will be devising go-to-market strategies to improve printing revenue. Printing revenue dipped 4 percent to $5.6 billion. HP faced declines in both hardware and supplies were partially offset by continued traction in graphics and managed print services.

Commercial hardware revenue growth flat to $1.4 billion, and consumer hardware revenue dipped 6 percent to $529 million. HP hardware unit shipments declined 5 percent.

HP said older product sales declined in Q3 and drove overall Ink in the office sales lower year-over-year. There was double digit growth in Officejet Pro X and Officejet Pro X Enterprise products.

HP plant

HP Enterprise revenue rose 2 percent to $6.9 billion. HP observed growth in industry standard servers, networking and converged storage, while traditional storage, Technology Services and business critical systems dipped.

The company said industry standard server revenue grew 9 percent to $3.1 billion. Technology Services revenue decreased 3 percent to $2.1 billion.

HP Storage revenue dipped 4 percent to $796 million, driven by 14 percent dip in traditional storage. HP converged storage sales grew 9 percent, led by double digit growth in 3PAR as customers continue to adopt alternatives to traditional high end enterprise storage arrays.

HP 3PAR plus XP plus EVA revenue declined 7 percent. HP expects another quarter of share gain in the external disk market overall in calendar Q2 ’14.

Networking revenue increased 4 percent to $672 million.

Enterprise Services revenue fell 6 percent to $5.6 billion, driven by key account run off as well as incremental weakness in EMEA.

Business IT outsourcing decreased 8 percent to $3.5 billion, and business services revenue was $2.1 billion, down 4 percent.

HP software revenue dipped 5 percent to $959 million. Professional services revenue declined 3 percent. SaaS revenue grew 8 percent.

HP employees

HP said nearly 36,000 people have exited the company under the restructuring program through the end of the third quarter.

HP expects approximately 41,000 to exit by the end of the fiscal year and a total reduction of 45,000 to 50,000 under this program with the remainder exiting in fiscal 2015.

Baburajan K
[email protected]

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