Hewlett-Packard announced that their second-quarter earnings report has missed estimates, as sales in the PC group dropped 15 percent to $8.87 billion in the period that ended in January. This is a reflection of consumer trends heading in the direction of smartphones and tablets that competitors make.
Revenue from servers, printers and storage gear also declined. “All these segments are going to have headwinds,” said Abhey Lamba, an analyst at Mizuho Securities USA Inc.
“U.S. PC shipments declined last year for the first time in a decade and the industry is wrestling with a shortage of hard drives after flooding crippled factories in Thailand last year. Meanwhile, Apple Inc.’s iPad is cutting into PC sales, and Lenovo Group Inc. is gaining market share,” writes Aaron Ricadela. “Hewlett-Packard, Dell and other PC makers are counting on a new crop of thin-and-light laptops called ultrabooks to spur sales.”
Source: Business Week {link no longer active}
