Latest Annual Report Raises New Questions for H-P's PC Unit PDF Print E-mail
Written by Mike Buetow   
Wednesday, 02 January 2013 08:39

PALO ALTO, CA -- Hewlett-Packard's commitment to its struggling PC business is drawing new attention thanks to its latest SEC filing that indicates certain units might be on the block.

In its Dec. 27 10-K filing, the computer maker said, "Our business has experienced a multi-quarter decline in revenue and operating margins. This decline in financial performance reflects a series of challenges facing our business. [W]e need to align our costs with our revenue trajectory; we need to address our underinvestment in R&D and in our internal IT systems in recent years, which has made us less competitive, effective and efficient." The company also noted the rise of cloud computing and the decline of growth in China.

PCs make up 20% of H-P's revenues, and printers another 20%. Sales from those businesses fell 10% in the latest fiscal year.

The annual report softens previous statements by chief executive Meg Whitman that H-P would keep the PC unit, which has seen its margins plunge over the past several years.

Should H-P sell the PC business, its major ODMs, including Foxconn, might see revenues shift as a result.



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