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.