Editor’s note: HP’s latest earnings report last week shows that premium PC sales are fueling revenue growth and profit recovery while HP continues to battle Lenovo for the No. 1 spot in global PC shipments, says Technology Business Research Analyst Jack Narcotta.
HAMPTON, N.H. – A third consecutive quarter of year-to-year overall revenue growth for HP Inc. in CY1Q17 highlights the effectiveness of the revamped sales approaches and product design initiatives that guide its Personal Systems business.
HP Inc. is integrating its historical assets as an engineering- and innovation-minded company into targeted initiatives to expand its footprint in the PC market’s higher price bands, sustain the company’s PC unit shipment growth, and rejuvenate its overall revenue and profits.
Overall revenue and gross profit growth year-to-year of 6.9% and 5.9% to $12.4 billion and $2.4 billion, respectively, and PC unit shipment growth of 5% year-to-year to a TBR-estimated 12.8 million, indicate HP Inc. is hitting its marks in premium PC segments, particularly consumer notebooks, commercial notebooks and workstations.
Upticks in demand from these PC customer segments, despite stronger competition, especially from Dell Technologies and Lenovo, highlight how the features and design aesthetics of HP Inc.’s PCs are in line with its addressable market, helping drive Personal Systems revenue up 9.6% year-to-year to $7.7 billion in CY1Q17.