iPad demand expected to contribute to HP's largest-ever quarterly loss
Facing declining PC sales in the wake of Apple's iPad, Hewlett-Packard this week is expected to report a record quarterly loss of nearly $9 billion.
HP will deliver its results after the market closes on Wednesday, but expectations are already low, as the company warned investors earlier this month that it will write down the cost of its $13 billion acquisition of Electronic Data Systems in 2008. Investors expect that HP lost between $4.39 and $4.49 per share during the three-month span that ended in July, according to the Associated Press, which would be a loss of between $8.5 billion and $8.9 billion, the company's worst quarterly performance in its history.
HP has seen its PC sales drop sharply in the face of Apple's iPad. In the second quarter of 2012, HP was the top PC vendor in the U.S., but its unit sales were down 12.7 percent, according to data from Gartner.
With the iPad included in PC sales, Apple is the No. 1 worldwide PC vendor, having accounted for 19.4 percent of all shipments, according to the latest data from Canalys. The iPad helped Apple achieve year-over-year sales growth of 59.6 percent, while HP's PC sales fell 11.3 percent worldwide, putting the company in second place with 12.5 percent of all PC shipments.
Things aren't expected to get much better for HP in the current quarter, which concludes in October. PC makers like HP are waiting on Microsoft to launch Windows 8, its next-generation operating system. Windows 8 will debut on October 26, nearly at the end of HP's current fiscal quarter.
HP made an initial push into the tablet market when it bought Palm and used the webOS mobile operating system for its TouchPad touchscreen tablet last year. But the TouchPad quickly faltered and HP abandoned the hardware with a $99 fire sale soon after the device debuted.
Some industry watchers expect that PC sales will continue on a downward trend through the rest of the year. Contributing to those losses is believed to be Apple's iPad, which is projected by one analyst to sell 69 million units this year alone.
As for HP's tablet plans going forward, one report in July claimed that the company had scrapped plans to build tablets based on Microsoft's Windows RT platform built for ARM-based touchscreen tablet devices. It was suggested that HP decided not to compete with Microsoft's own Surface, and could instead develop its own tablets based on Google's Android mobile operating system.
HP will deliver its results after the market closes on Wednesday, but expectations are already low, as the company warned investors earlier this month that it will write down the cost of its $13 billion acquisition of Electronic Data Systems in 2008. Investors expect that HP lost between $4.39 and $4.49 per share during the three-month span that ended in July, according to the Associated Press, which would be a loss of between $8.5 billion and $8.9 billion, the company's worst quarterly performance in its history.
HP has seen its PC sales drop sharply in the face of Apple's iPad. In the second quarter of 2012, HP was the top PC vendor in the U.S., but its unit sales were down 12.7 percent, according to data from Gartner.
With the iPad included in PC sales, Apple is the No. 1 worldwide PC vendor, having accounted for 19.4 percent of all shipments, according to the latest data from Canalys. The iPad helped Apple achieve year-over-year sales growth of 59.6 percent, while HP's PC sales fell 11.3 percent worldwide, putting the company in second place with 12.5 percent of all PC shipments.
Things aren't expected to get much better for HP in the current quarter, which concludes in October. PC makers like HP are waiting on Microsoft to launch Windows 8, its next-generation operating system. Windows 8 will debut on October 26, nearly at the end of HP's current fiscal quarter.
HP made an initial push into the tablet market when it bought Palm and used the webOS mobile operating system for its TouchPad touchscreen tablet last year. But the TouchPad quickly faltered and HP abandoned the hardware with a $99 fire sale soon after the device debuted.
Some industry watchers expect that PC sales will continue on a downward trend through the rest of the year. Contributing to those losses is believed to be Apple's iPad, which is projected by one analyst to sell 69 million units this year alone.
As for HP's tablet plans going forward, one report in July claimed that the company had scrapped plans to build tablets based on Microsoft's Windows RT platform built for ARM-based touchscreen tablet devices. It was suggested that HP decided not to compete with Microsoft's own Surface, and could instead develop its own tablets based on Google's Android mobile operating system.
Comments
Megabucks Whitless has worked her magic at HP, I see. A worthy successor to Carly Failorina...
some post record profits ... other record losses ...
Good. What a shitty company. Never had a single product form them that did not have repeated hardware failures.
Quote:
Originally Posted by AppleInsider
Contributing to those losses is believed to be Apple's iPad, which is projected by one analyst to sell 69 million units this year alone.
69 million this year? I wouldn't bet against 120+ million next year. (Especially if there really is an "iPad Air" in the pipeline...)
Quote:
Originally Posted by Slurpy
Good. What a shitty company. Never had a single product form them that did not have repeated hardware failures.
HP used to make some incredibly good calculators.
But that was then and this is now and yeah, they're a shitty company now.
All the more reason for Apple to protect their IP.
Quote:
Originally Posted by sunspot42
Megabucks Whitless has worked her magic at HP, I see. A worthy successor to Carly Failorina...
Seeing as how she's a Republican stooge, I'm happy to see her fail.
I still don't agree with saying an iPad is a computer exactly. I currently own an iPad 2, iPhone, and have ordered a Macbook Pro with retina (so i'm not a hater). An iPad is like a PC but not at the same time. I argue both ways because it is and isn't a computer. But I do like how the article says, if iPads are counted.
Anyway, like I said before, I ordered a new laptop, my 6 year old dell is just too old to do what I need. HP laptops have NEVER impressed me and look just basic to me. They always seemed not to have good build quality to me.
Anyway, Dell was the only PC company they I would have bought a PC from. I know everyone says that Dell sucks, blah blah; But my family and my GF have had great experiences with Dells. I will be the first one to switch to Mac, my brother will probably follow me one day. My mom recently got an iPad and it will do what she needs in a computer (thus where an iPad can be considered a PC)
Anyone know what kind of ship times I can expect on the macbook retina? I know it says 5-7 days, but maybe 5 days?
Originally Posted by Quadra 610
All the more reason for Apple to protect their IP.
"But that's not what the trial is about!"
There should be a font designed specifically to express "whining".
Oh, wait.........
Quote:
Originally Posted by Blastdoor
Seeing as how she's a Republican stooge, I'm happy to see her fail.
Let us not bring politics into this. Afterall, Obama surely has been good at getting the US up right? Yep, right in debt! lol (Anyway, I don't support either party, because there are things I like and hate about both of them)
If I were running HP, my first step would be to look for another job.
Failing that, I think I'd kill most consumer-oriented products and refocus on enterprise/government/academia.
Using SJ's truck/car analogy, I'd turn HP into the best darned truck producer it can be. HP can no more compete with iPads than 1990-era GM could compete with Honda Civics.
Quote:
Originally Posted by sunspot42
Megabucks Whitless has worked her magic at HP, I see. A worthy successor to Carly Failorina...
Both of whom ran for office in California (and lost, thank goodness)…
Yep, they are definitely two peas of the same pod...
Quote:
Originally Posted by AppleInsider
Contributing to those losses is believed to be Apple's iPad
If you believe that, I guess it goes to show that many people do not need a full PC/laptop.
Interesting that MacBook Pros and Airs continue to sell well though. To what do we attribute that phenomena?
Perhaps people just do not need Windows?
Quote:
Originally Posted by Blastdoor
If I were running HP, my first step would be to look for another job.
Failing that, I think I'd kill most consumer-oriented products and refocus on enterprise/government/academia.
Using SJ's truck/car analogy, I'd turn HP into the best darned truck producer it can be. HP can no more compete with iPads than 1990-era GM could compete with Honda Civics.
So, you'd position HP to try and compete directly with IBM then?
Better to just find that other job…
Quote:
Originally Posted by Blastdoor
If I were running HP, my first step would be to look for another job.
Failing that, I think I'd kill most consumer-oriented products and refocus on enterprise/government/academia.
Using SJ's truck/car analogy, I'd turn HP into the best darned truck producer it can be. HP can no more compete with iPads than 1990-era GM could compete with Honda Civics.
i use a lot of HP enterprise stuff. most of it is just rebranded and relabled OEM products that are tested to work together. the software is mostly crap. there is very little that HP does itself. they are like a giant QA department
There was an article recently that quoted surveys from recently, and a year ago, that showed a large percentage of iPad users having an iPad as their only computer. The percentage this year was larger than last year. Somewhere above 30%, I believe.
Quote:
Originally Posted by tribalogical
Quote:
Originally Posted by Blastdoor
If I were running HP, my first step would be to look for another job.
Failing that, I think I'd kill most consumer-oriented products and refocus on enterprise/government/academia.
Using SJ's truck/car analogy, I'd turn HP into the best darned truck producer it can be. HP can no more compete with iPads than 1990-era GM could compete with Honda Civics.
So, you'd position HP to try and compete directly with IBM then?
Better to just find that other job…
I think competing with IBM was their wish, but the write down of EDS shows that wasn't working out either.
Now, just think whats gonna happen to these companies when Microsoft releases and starts marketing the Surface as the hero Windows 8 product. They're sitting between a rock and a hard place. If they want the product to do well and compete against the iPad, they're going to have to price it extremely aggressively. Which will completely screw over their OEM partners and their profit margins.