Tomahawk, WI 08/22/2214 (Basicsmedia) – Hewlett-Packard Company (NYSE:HPQ) 12% growth in PC sales in the third quarter came with lots of concerns from the investor’s community on the belief that the company was over relying on the sector that may not be sustainable in the Long-term. Hewlett-Packard Company (NYSE:HPQ) was not the only company that registered growth on PC sales, the broader industry realized gains as the PC refresh rate from businesses, and Corporates picked up in the quarter. CEO, Meg Whitman, in an interview on CNBC admitted to the fact that a lot has to be done on the software part of business to prevent a scenario of over relying on PC sales.
“We’ve got work to do, to grow our software business; Software is in the middle of a very difficult transition from traditional license model to SAS and so we have a portfolio that has to move from license to SAS. We have some very good products in that regard, and that’s going to have some choppiness on the topline,” said Mrs. Whitman.
The transition from a software licensing model to SAS according to the CEO is expected to result in some topline choppiness as result of a shift from a one-time payment to an overtime payment, which should affect the company’s financial architecture
Despite PC sales improving in the quarter, many analysts are still concerned with the rate at which the segment has over the years been known to contract at; attributed to the fact that business and corporates don’t upgrade their hardware’s each quarter. Whitman remains confident despite the concerns that the Hewlett-Packard Company (NYSE:HPQ) is more than capable to increase its market share to enjoy any significant pockets of growth that may creep in, in the long-term.
“The traditional PC business is probably a flat, to a slightly declining market overtime but there are real pockets of growth. […] so we have to segment the market, go after where there is real growth and then take a share,” said Mrs. Whitman.
Hewlett-Packard Company (NYSE:HPQ)’s printing business continues to grow steadily shown by high margins in contrast to revenues that look to have stagnated.