Hewlett-Packard (HP) has unveiled its Q3 2023 results, with a 9.9% drop in revenue.<\/p>\n
CEO Enrique Lores says company is “delivering on its plan to drive sequential improvement.” He attributed the revenue decline to “aggressive pricing environment” and sluggish demand in China.<\/p>\n
Lores also said he sees sequential growth in Q4, but he is moderating expectations for full year, and he plans to reduce structural costs by $1.4 billion while simplifying product portfolio and reduce number of platforms.<\/p>\n
Lores reported Q3 net revenue of $13.2 billion, a 2 percent increase from the prior quarter. The consumer segment remains frail, while the SMB sector displays some resilience.<\/p>\n
HP’s Q3 regional revenue exhibited an 8 percent decline in the Americas, a 5 percent drop in EMEA, and a 9 percent reduction in Asia-Pacific and Japan (APJ), driven primarily by China’s weakening demand.<\/p>\n
The PC division’s revenue for this quarter was $8.9 billion, with a yearly decrease of 11 percent but a 9 percent increase over the prior quarter, attributed to back-to-school demand.<\/p>\n
Print product revenue totaled $4.3 billion, reflecting a 7 percent year-on-year decline due to weakened demand in China, competitive consumer print market pricing, and deferred enterprise expenditure in the industrial sector.<\/p>\n
HP also announced plans to reduce structural costs by $1.4 billion. This will involve simplifying the company’s product portfolio and reducing the number of platforms it supports.<\/p>\n
Lores said that these cost-cutting measures are necessary to “weather the ongoing sluggish market conditions.” He added that HP is confident in its long-term growth prospects, and that the company is “making good progress” on its strategic priorities.<\/p>\n