HP offers weak outlook, will cut 25 per cent of PC models

HP said it will focus on better design to help turn around its business

Hewlett-Packard has outlined a turnaround plan that includes slashing the number of PC models it sells by 25 percent over the next two years.

At its financial analyst day in San Francisco, HP also painted a weak financial outlook for the next fiscal year, saying it expects earnings per share of $US3.40 to $US3.60. That's well below the analyst estimate of $US4.18.

HP's stock price took a hit after the announcement. It was down around 11 per cent in mid-afternoon trading.

HP has been working to turn itself around after a series of missteps that included developing and then scrapping a line of smartphones and tablets, and declaring it might sell its PC business and then changing its mind.

New CEO Meg Whitman announced a money-saving plan in May that involves cutting 27,000 jobs. On Wednesday, executives outlined further plans for each product group.

The company will simplify its PC and printer businesses by cutting a quarter of the PC platforms it sells by the end of 2014, as well as 30 percent of its printer models, or SKUs, in the same time frame, executives said.

Taking a leaf out of Apple's playbook, HP also said it will also emphasize better design. "We don't want to do ugly," said Stacy Wolf, HP's vice president of industrial design.

He showed HP's Spectre One all-in-one PC and XT ultrabook as examples of where HP's PC designs are heading.

HP also hopes to turn itself around with tablet sales to the enterprise. "We expect this category to grow at three times the rate of the consumer tablet market," said Todd Bradley, executive vice president of HP's Printing and Personal Systems Group.

HP's analyst meeting was set to continue with a presentation about its server, network and storage business.

James Niccolai covers data centers and general technology news for IDG News Service. Follow James on Twitter at @jniccolai. James's e-mail address is james_niccolai@idg.com

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?