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HP Reports First Quarter 2016 Earnings
February 27, 2016
Earlier this week, HP Inc. released their first quarter earnings report for the newly formed personal systems arm of the company that officially began on Nov. 1, 2015 following the HP split. Overall, the numbers were as follows:
Dion Weisler, HP's President and CEO, said, "We have a clear strategy that leverages our strengths, and we are focused on execution, taking cost out of the business and delivering innovations that will amaze our customers and partners. Although we have some tough quarters ahead, I am confident in the future."
Looking at the two primary segments of the newly formed business, the personal systems group which includes HP PCs and laptops had a revenue decline of 13% year over year. In this group, commercial net revenue experienced an 11% decline and consumer net revenue declined 16%. The number of units sold was also down by 13% with notebooks experiencing an 8% decline and desktops down 13%.
Printing also experienced a decline of 17% from the same quarter last year. Overall printer hardware suffered a 20% decline with commercial units down 15% and consumer units down almost a full quarter at 23%. Supplies revenue for the printers was also down 14%.
According to the Recycler, prior to the results coming out on Feb. 24, NASDAQ suggested that the decline was due to a lower demand for desktop PCs and printers. The shift has come about due to the increased availability and capability of mobile devices and cloud storage.