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Feb 24th, 2018 Comments Off on HP Is Making Lots Of Money In Spite Of High PC Component Prices

HP Is Making Lots Of Money In Spite Of High PC Component Prices

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Thanks to the increasing pricing of memory components across the world, a lot of hardware manufacturers are experiencing setbacks, but Hewlett-Packard Incorporated has managed to eke out large profits across the world.

Throughout 2017, HP Inc. has been experiencing continuous, consistent growth in profits, and it’s slated to continue this growth for the first quarter of 2018, if the company stock posting on the 15th of February 15, 2018. According to PC Unit Head Ron Coughlin, while the costs of the commodities needed by hardware manufacturers have gone up, the company has managed to compensate for the costs by tightening the budget and a shift into the premium models; the embedded and industrial PC markets.

This emphasis on the industrial PC, gaming PC, and other high-end PC markets have managed to lift up the company’s margins, which, on top of the company’s increasing shares, lead to HP being dubbed as the top PC manufacturer by market research firms Gartner and IDC.

IDC recently predicted that annual global PC shipments to drop 2% year unto year until 2021, with 2017 heralding the fall with flat numbers. In stark contrast, however, HP recorded an 8.2% shipment growth for 2017 according to IDC’s data, with the company shifting to meet consumer preferences.

Coughlin noted that the market demand was shifting towards all-in-ones for traditional cases and notebook computers.

Paul Coster, an analyst from J.P. Morgan, predicted that increasing memory costs and pressure with average pricing will lead to HP’s financial reports to only meet the set expectations, following the company’s performance in the latter half of 2017, wherein the company’s high figures evened out to meet expectations, from above the set standard.

Outside of the PC manufacturing business, HP’s printer and imaging sector has some development, having recently acquired Samsung Electronics Co. Ltd.’s printer sector at the tail end of 2017, and HP CFO Catherine Lesjak stated that the company might stick to investments for the first half of 2018.

Analyst Steven Milunovich, UBS, says that investors tend to ignore how sustainable the printing industry can be, with the market slated for major improvements.

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