Tomahawk, WI 08/21/2014 (Basicsmedia) – Hewlett-Packard Company (NYSE:HPQ) benefited a great deal from increased refresh of old PC’s in the U.S., highlighted by a 12% increase in sales in the third-quarter. CEO, Meg Whiteman, turnaround strategy and cost-cutting measures continue to bear fruits on the PC segment with investors hoping the same could be replicated in other businesses, such as software and services. Bloomberg’s Caroline Hyde was quick to point out that Hewlett-Packard was not the only company that recorded an increase in PC sales for the quarter thus no need to be overexcited’ over the achievement.
“For the first time we’ve seen sales up by 12% in three years, first-quarter in 12, so maybe just tentative steps. We are starting to see how cost-cutting actions and slashing of jobs but also, what we’re seeing here is actually luck. This is the second quarter, the PC market not only helped HP, but also Microsoft also Intel, all the old guard and Hewlett-Packard Company (NYSE:HPQ) itself is one of Silicon oldest companies,” said Mrs. Clark
The increase in PC sales for HP came as more businesses and corporates in the U.S continued to invest on new PC’s as Microsoft withdrew XP that was dominant with the old hardware. Other than growth in the PC business, Hewlett Packard was a laggard in terms of sales in the other key businesses.
“PC was better than expected but what about the rest of the units. Hardly any growth if not falling sales in those departments because remember they also got key focus on printing in particular that’s about a quarter of their sales. They’ve got half of their sales on services,” said Mrs. Hyde
The uneven improvement in sales at Hewlett-Packard essentially highlights the amount of challenges that Whiteman is continuing to face in her bid to turn around the fortune of the company. Hyde also raised concerns that the increase in PC sales could be a short turn improvement considering businesses and corporates will not be upgrading their PC’s each now and then.
Sustained PC sales remain the biggest challenge for Whiteman as Hewlett-Packard Company (NYSE:HPQ) is competing with the likes of EMC Corporation (NYSE:EMC) and Oracle Corporation (NYSE:ORCL), which are fielding cheaper technologies in the industry.