HP CEO issues memo warning spring down too

HP CEO Leo Apotheker has warned staff in a new company memo that the company is likely to face more trouble in its current quarter ending in July. Echoing an outlook warning from February that proved true for the winter, he said it would be "another tough quarter" and demanded that every division cut back on expenses. The company had to "watch every penny" and keep new hires to a minimum, Apotheker said in Bloomberg's version of the note.

The firm has for a long time remained the most successful PC builder but has faced mounting problems with its business. During its previous quarter, the company had blamed the slump primarily on slow home computer sales. Customers clinging to older PCs were blamed, but its sales reflected a larger downward trend that was affecting most computer builders save for Apple and Toshiba.

Suspicions have mounted that even HP may have faced the same 'iPad effect' as Acer, where a small but significant number of buyers were skipping Windows computer sales to get tablets, most of which were Apple's.

Apotheker has been eager to put more of HP's home efforts in mobile devices but is currently waiting for the TouchPad and Pre3 to ship.

By Electronista Staff