HP is warning investors of lower than expected demand in its consumer PC and enterprise services branches.
Chief executive Léo Apotheker told investors, analysts and reporters at the company's first-quarter earnings call that, despite overall gains, there are areas where HP needs to improve.
Revenues for the company's business services line fell by two per cent from the previous year, while the Personal Systems Group (PSG) saw revenues fall by one per cent on the year.
The PSG fall was blamed in large part on slowing consumer sales, and Apotheker explained that a 12 per cent consumer drop was too much for an 11 per cent gain in enterprise sales to overcome.
Apotheker tried to temper the bad news on the consumer front with optimism for the WebOS mobile platform, which launched on the HP TouchPad tablet earlier this month.
"We are all excited about our WebOS platform. The enthusiasm exceeded even our most optimistic expectations," Apotheker said during the call.
Apotheker also expressed disappointment at the company's services branch. Revenues from application services fell by three per cent, while technology services were down one per cent over the previous year.
"We need to do a much better job in our higher value-added services," he said. "What is apparent in Q1 is that we have some work to do."
HP still managed to post a profitable quarter, however. Revenues were up four per cent on the year, while cash flow from operations increased by 28 per cent.
HP also managed to maintain its position as the world's top PC vendor. Apotheker noted that, despite the lowered revenues, the company remained the top seller in the desktop and notebook PC spaces.
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