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Remote work boom drives HP Inc to sell record numbers of printers and PCs
Until now, it was generally accepted that self-isolation and the transition to remote forms of interaction spurred demand mainly for laptops, but the quarterly report from HP Inc. Proven that home office workers don’t give up on printing devices either. The last for the quarter, the company was able to sell a record number of 12 million units.
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At least the last time about similar sales volumes of HP Inc printing devices. reported even before its structural separation in 2021. As explained by Bloomberg with reference to the comments of the management of HP Inc., the record demand was provided by private buyers of printing devices, not corporate. In general, in the third quarter, the company observed the activity of private consumers, they increased revenue by 24%, while in the corporate direction it in the segment of personal devices fell by 12%. Printing devices, despite record sales growth, brought HP Inc in the third quarter. 3% less profit than a year earlier – about $ 4.8 billion.
Sales volumes of HP consumer products grew by 21%, corporate – decreased by 22% in monetary terms. Such a balance allowed us to maintain revenue in the direction of personal devices at the level of the third quarter of last year – $ 10.4 billion. Personal Computers HP Inc. was able to sell 19 million units in the last quarter, which is also a record. Profit forecast for the current quarter was higher than analysts’ expectations, HP Inc. even announced its readiness to raise the amount of dividends by 10%.
In annual comparison, revenue of HP Inc. decreased by 1% to $ 15.3 billion, negative dynamics has been observed for the fourth quarter in a row. Revenue from notebook sales grew 18% to $ 7.41 billion, while sales of desktops and workstations fell. But the proceeds from the sale of the so-called “Chromebooks” have more than doubled, since they are still in demand in the educational sphere.
HP Inc. expects shortages of various kinds of microcircuits and panels for laptops will prevent the company from fully meeting demand until the middle of next year. The lack of components is especially acute in the lower price segment, as in the face of a pandemic and economic uncertainty, people are trying to choose cheaper laptops.
Competing corporation Dell also reported on the results of the third fiscal quarter. Total revenue rose 2.8% to $ 23.5 billion, while consumer PCs grew 14% to $ 3.5 billion. Unlike HP, Dell showed positive dynamics of revenue in the corporate segment, increasing it by 5.4% to $ 8.78 billion. Sales of server and telecommunications equipment Dell fell 1.8% in value terms, to $ 4.16 billion. This has been going on for the seventh quarter in a row, Dell does not expect an increase in demand for server solutions from the current reporting period either. Storage systems brought the company in the last quarter 7% less than a year earlier. Dell executives expect consistent 3-4% revenue growth for this quarter.