What Were Major Highlights in HPQ’s Personal Systems Business?
What Will Hewlett-Packard's Focus Be in Fiscal 3Q16 and Beyond?
New product introductions
Hewlett-Packard (HPQ) continues to deliver design and engineering in the Consumer Premium segment. Hewlett-Packard introduced the HP Spectre, the world’s thinnest laptop, at the New York Times International Luxury Conference.
In the Consumer Premium segment, HPQ rose in the double digits YoY (year-over-year), although the broader consumer market fell.
In April 2016, HPQ reinvented the Chromebook to be ultra-thin for home and office and announced it with Google (GOOG) (GOOGL) at a higher selling price.
According to Hewlett-Packard, this device offers a quick boot time, simple navigation, multilayered security, and the ability to share and access information anywhere. It’s also the first device to use a sixth-generation Intel (INTC) Core M processor.
HPQ gains momentum in growth markets
Hewlett-Packard has stated that even though the macroeconomic environment was challenging in fiscal 2Q16, it continues to gain momentum in key growth markets. In the core PC (personal computer) segment, HPQ outperformed the PC market. The company also maintained its leadership in the worldwide desktop workstations market with a share of 45.6%. It grew its number-one share in mobile workstations to 38.9%.
HPQ delivered constant currency YoY growth in strategic and profitable business areas such as detachables, commercial services, and consumer displays. Its operating profit in the Personal Systems business segment improved to 3.5%.
One of the key commercial consumer wins for HPQ in fiscal 2Q16 resulted from its deal with the Germany-based (EWG) Deutsche Post DHL Group, the world’s leading logistics service group. The deal included a broad range of commercial products including EliteBooks, x2 tablets, and Chromebooks.
HPQ expects a YoY fall to moderate its Personal Systems business in the future.
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