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HP’s Personal Systems Segment Continues to Post Sluggish Sales

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HP’s Personal Systems division

HP’s (HPQ) Personal Systems segment revenues have been growing on a YoY basis, but the rate of revenue growth has declined in the past five quarters. In the second quarter, personal systems segment revenue increased just 1.8% YoY to ~$8.9 billion due to the declining demand for personal computers amid the rise in demand for smartphones. Excluding currency headwinds, revenue growth was 5% YoY in the second quarter.

While commercial net revenue increased 7% in the quarter, consumer net revenue fell 9% YoY. Total units sold also declined 1% YoY in Q2 fiscal 2019 due to a 5% decline in notebook shipments offset by a 6% rise in desktop shipments.

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Innovations

Despite sluggish revenue growth, the company expects to deliver innovative and premium hardware products and services in the near term to grow revenues in this segment. In the second quarter, the company launched HP ProBooks within its AMD portfolio for small and medium-sized businesses. HP also offered the new Intel-based EliteBook 800, which includes HP Sure Sense to detect and prevent malware threats, thus bringing security to mainstream business users. The company also launched new OMEN devices for gamers, including the recently launched OMEN X 2S, the world’s first dual-screen gaming laptop.

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