How Will Hewlett-Packard’s Personal Computer Segment Perform in Fiscal 3Q16?



PC shipments beat expectations in 2Q16

In fiscal 2Q16, IDC stated that worldwide PC shipments fell by 4.5% YoY (year-over-year) to 62.4 million units lower than analyst expectations of a YoY decline of 7.4%. According to IDC, “Improvement in channel inventories appears to have contributed to the stronger results, along with an easier year-on-year comparison and easing of component supply.”

Hewlett-Packard (HPQ) remained the second-largest manufacturer, and its shipments rose by 5.1% YoY from 12.3 million units in 2Q15 to 12.96 million units in 2Q16. The market share of the firm also increased from 18.9% to 20.8% in the same period.

IDC further stated, “HP Inc. had a solid quarter, with growth returning to positive territory after a year of declines. The US led regional growth with a gain of 11.5% from last year as the company rebounded from a couple of soft quarters, but other regions also saw growth in positive territory.”

In fiscal 2Q16 (quarter ended April 2016), Desktop sales for HPQ fell by 13% YoY, while notebook sales fell by 8% YoY.

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Other major players

China’s (FXI) Lenovo (LNVGY) saw its PC shipments fall 2.3% YoY to 13.2 million units. Lenovo accounted for 21.2% of the overall market. Dell remained the third-largest manufacturer, with PC shipments of almost 10 million units and a 16% share. Apple’s (AAPL) unit shipments also fell by 11% YoY to 4.3 million from 4.8 million in 2Q16.

In the United States, Apple’s market share also fell to 11.2% in 2Q16 from 12.7% in 2Q15. Dell, Hewlett-Packard, and Lenovo are the other top players in this region, with shares of 25.8%, 27.9%, and 14%, respectively, as of the end of 2Q16.

Now let’s look at HPQ’s Printer and Supplies segment.


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