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Rushed HP results show small gains, steep drop in home PCs

updated 08:30 am EDT, Tue May 17, 2011

HP puts out results early and blames home PCs

HP in the wake of its CEO's leaked memo decided to rush its quarterly results to this morning in a sign of deeper trouble with its home PC business. The company saw its revenue and profit go up by three and five percent each year-over-year, to $31.6 billion and $2.3 billion, but were buoyed primarily by better enterprise sales. Its PC business' revenue dropped five percent as a 13 percent boost in revenue from corporate buyers was more than offset by a 23 percent plunge in home PC revenue.

The company didn't attempt to immediately explain the sales problems and said they were consistent across "all geographies."

Chief executive Leo Apotheker's warning was validated with a negative outlook for HP's current quarter, which ends in July. Its revenue would be down to a peak of $31.3 billion and a slight drop in profit. The decline would be partly the result of the Japanese earthquake but also "continued softness" in home PCs.

The sustained sales slump is uncommon for HP and suggests it's as much or more of a victim of the current broader decline in Windows PCs. Although Mac sales might have slowed this month, Apple along with Toshiba are some of the few to have grown their computer sales in early 2011. HP has been less prone to the iPad's effect on computers than its Taiwanese rival Acer but has still leaned heavily on the low-end notebooks and netbooks that have been cannibalized by tablets.

An answer to the iPad and newer Android tablets is due through the TouchPad coming in June.

by MacNN Staff



  1. Mr. Strat

    Joined: Dec 1969



    Maybe people are tired of wasting a day either reinstalling Windows or uninstalling all of the bundled crapware.

  1. SockRolid

    Joined: Dec 1969


    XP is still good enough for enterprise

    The Windows 7 sales bump is over. Consumers who were just sick and tired of XP (or who couldn't get Vista to run well on their pee cees) upgraded. Probably by buying a pee cee instead of installing Windows 7 themselves. The HPs of the world are perfectly happy that Windows is a nightmare to upgrade.

    But XP still rules the corporate IT world. 60% of all corporate desktops are still running Windows XP. And why is that? Why would businesses run an OS that was first released way back in 2001?

    Because Microsoft hasn't added any value to Windows since then. XP was the first consumer-level version of Windows that used the NT kernel. It shed the rickety old GUI-running-on-top-of-DOS-as-an-application architecture that Microsoft used since Windows 1.0 in 1985. You know. The Blue Screen of Death architecture.

    So just what HAS Microsoft been doing with Windows in the last 10 years? Just one thing. They've been releasing new versions that don't run your old software. Why? So you'll be forced to upgrade Office, which I hear is quite costly. And why would Microsoft want you to do that? Because that's the only way they can milk corporations. By forcing them to upgrade.

    Didn't work. XP is still good enough. Why run Vista or 7 in "XP Compatibility Mode" when you can just run XP?

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