Hewlett-Packard (HP) has unveiled its Q3 2023 results, with a 9.9 per cent drop in revenue.
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.
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.
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.
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.
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.
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.
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.
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.
The sources for this piece include an article in TheRegister.