HP's financial results posted today do not paint a particularly pretty picture for the IT firm; the company has many fingers in lots of pies, but most of those pies are causing minor burns.
Personal computing was down 11 percent year-on-year, while printing also fell by four percent. Its enterprise division didn't just lose 9 percent of its revenue, but also lost its chief, as David Donatelli was shifted into another role within the company. The only ray of sunshine for HP was its software division, but even that only managed a one percent increase in revenue.
So where does HP go from here? Right now, analysts are unsure, with the company not giving clear pointers as to where its focus lies. What's worse, the places in which HP is losing revenue are all totally different aspects to its business, so it can't blame one particular part of the market.
The personal computing business is of course suffering much of the decline coming from the consumer side of things, according to Ovum analyst Tom Reuner, with consumers still unwilling to upgrade their laptops as often as they used to. The firm had previously toyed with the idea of selling off its personal computing arm, but Reuner isn't so sure that would go down well with investors. "It's such a large chunk you need something to replace it because top line is still important for investors." Indeed, personal computing is HP's biggest money spinner after its enterprise business, worth $7.7bn in the last quarter.
HP was also rumoured to be looking at making a play for the smartphone market but, again, with the market so utterly saturated by a combination of Samsung, Android and Apple, it would be a hard slog that probably wouldn't amount to much. "It's such a commoditised space, when you look at PCs and smartphones as a lever for other products and services but from a smartphone point of view it's more difficult to see where the turnaround could come from," explained Reuner.
So with enterprise still the biggest earner for the company but also appearing to be in significant decline, it only makes sense to oust the current head and look elsewhere. David Donatelli's replacement is Bill Veghte, previously the firm's chief operating officer. Veghte has strong experience in the competitive and burgeoning cloud business, and HP hopes that he will be able to better unite cloud and enterprise services.
It hasn't been all bad for HP, which secured a $3.5bn US Navy contract last month but, again, these huge deals don't always result in big profits. "But it is a promising promising sign that HP is able to be selected for major projects again," said Reuner
Meg Whitman has now been CEO for two years, a long period of stability for the firm, but she will need to find focus soon if HP is to continue on the road to recovery.
Written by V3's Michael Passingham, who prefers ketchup
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