HP Inc. Adjusts to the 'New Normal' in PC Market
Industry analysts this year have said the PC market continues to decline. Canalys earlier this month reported that in the first three months, global PC shipments fell 13 percent from the same period in 2015, dropping to levels not seen since 2011. The numbers echoed what analysts with IDC and Gartner also have seen, though some are hopeful that the combination of Windows 10, new systems with more powerful processors and the growing popularity of Chromebooks may lead to a modest rebound over the next several quarters. That would be welcome news to PC makers like HP, Lenovo, Dell and Acer. Weisler said he agreed with the overall assumptions the analyst are making. "We see continued declines in calendar quarter two, the markets projecting that it will improve in calendar quarter three and four, and we tend to disagree now whether it's low single digits or mid-single digits," he said. "I guess that's up for debate and no one is perfect making those predictions, but I think things are getting better."Weisler also talked about the blurring lines between systems and devices and said that vendors need to take a more holistic view of the market. "Technology is not going to slow down; it's only going to accelerate," he said. "I think we've got to start looking as an industry at the entire spectrum all the way from phones to workstations. … Think about how those hard lines were characterized in the past and how those hard lines will begin to break down in the future." The company also is beginning to look beyond its core PC and printing businesses. Earlier this month, HP launched HP Tech Ventures, a corporate venture arm that will invest in startups in such areas as artificial intelligence, immersive computing, robotics, drones, wearable devices and the Internet of things.
HP officials also said they expect the company's printer supplies business, which includes ink and which showed a 16 percent decline in revenue, to $3.1 billion, should stabilize in 2017 as the company makes changes to how its sells supplies and printers.