How Hewlett-Packard Is Planning to Improve PC Sales

Hewlett-Packard (HPQ) is planning to open 1,000 retail stores in India by the end of 2018, which is far more than its current 490 stores.

Adam Rogers - Author

Aug. 16 2017, Updated 3:06 p.m. ET


Consumer demand likely to remain stagnant in 2017

IDC (International Data Corporation) expects the worldwide demand for PC (personal computer) shipments to remain under pressure in 2017. However, it anticipates shipment growth in verticals such as PC gaming and sleek Windows-based (MSFT) systems that will help drive consumer demand.

We’ve seen that Hewlett-Packard (HPQ) has managed to consistently perform better than the worldwide PC market over the last two quarters. In 1Q17, it was the top PC manufacturer, beating Lenovo (LNVGY) for the top spot. HPQ is looking at ways to improve its market share and compete with technology giants such as Dell and Apple (AAPL).

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Increasing its footprint in India

Earlier this month, Hewlett-Packard launched its new line of notebooks—HP Spectre x360 and HP Pavilion x360—in India (INDA). It’s planning to open 1,000 retail stores in India by the end of 2018, which is far more than its current 490 stores. That will increase the company’s retail footprint in India with plans to focus on tier II, tier III, and tier IV towns. HPQ is the top PC manufacturer in India with a share of approximately 29.0%. In 2016, more than 40.0% of HPQ’s sales from India were from smaller cities, compared to 25.0% in 2015. That figure is expected to reach 60.0% in 2018.

Mature markets drove PC growth in 2Q17

IDC stated that mature markets outperformed emerging markets and Latin America in 2Q17 with regard to global PC shipments. Sales in the United States (SPY) fell marginally in 2Q17. Hewlett-Packard’s desktop units fell 6.0% YoY (year-over-year) in fiscal 2Q17 compared to a 12.0% YoY rise in notebook units.


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