Why Did Hewlett-Packard’s Personal Systems Revenues Decrease?

Adam Rogers - Author

Aug. 18 2020, Updated 6:13 a.m. ET

Personal Systems revenue fell 13% YoY

Hewlett-Packard’s (HPQ) revenues for its Personal Systems segment fell 13% YoY (year-over-year) to $7.5 billion and 6% on a constant currency basis in fiscal 1Q16. Operating profit from this segment was $229 million, or 3.1% of revenues. Notebooks accounted for 57% of revenues in the Personal Systems segment. Desktops, Workstations, and Others accounted for 33%, 6%, and 4% of revenues, respectively.

Total units fell by 13% YoY in fiscal 1Q16. Notebook revenues fell 11% YoY and 8% YoY on a constant currency basis in fiscal 1Q16. Desktop revenues fell 14% YoY, while units fell 13% YoY. Commercial revenues fell 11% YoY, whereas consumer revenues fell 16% YoY in fiscal 1Q16.

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PC market share rose marginally

According to market research firm IDC (International Data Corporation), total PC (personal computer) units fell 10.6% from 80.4 million units in 4Q14 to 71.9 million units in 4Q15. China’s (FXI) Lenovo (LNVGY) saw its PC shipments fall 4.5% YoY to 15.4 million units. Hewlett-Packard had the steepest decline in PC sales, which fell 10.1% to 14.3 million units in 4Q15.

As you can see in the above graph, Apple’s (AAPL) market share increased from 6.8% in 4Q14 to 7.9% in 4Q15. Lenovo’s market share rose from 20% to 21.4% in the same period. Dell’s market share rose from 13.4% in 4Q14 to 14.1% in 4Q15 with total shipments of 10.2 million.

Hewlett Packard’s market share rose marginally from 19.8% in 4Q14 to 19.9% in 4Q15. Asus saw an increase of 0.9 percentage points to 7.9% in 4Q15.

Apple makes up 15.8% of the Technology Select Sector SPDR ETF (XLK).

Read on to the next article to see what Hewlett-Packard is doing to carry out its restructuring plan.


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