HP tops revenue, profit estimates thanks to strong demand for AI-optimized PCs
HP exceeded revenue and profit expectations in its second quarter, driven by strong demand for AI-optimized PCs. The company is facing challenges due to rising memory costs and a shortage of memory chips, which are impacting margins. Despite these challenges, HP anticipates growth in AI PC shipments and plans to adjust pricing strategies to maintain revenue.
- ▪HP reported a 9 percent increase in second-quarter revenue, reaching US$14.41 billion.
- ▪AI PC shipments now account for 44 percent of HP's total PC shipments, up from over 35 percent in the previous quarter.
- ▪The company expects AI PC shipments to rise to between 60 percent and 70 percent of total shipments in the next fiscal year.
Opening excerpt (first ~120 words) tap to expand
Open this photo in gallery:A Hewlett-Packard (HP) logo at the Microsoft Ignite technology conference in Chicago in May, 2015.Jim Young/ReutersShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountHP HPE-N beat analysts’ estimates for second-quarter revenue and profit on Wednesday, helped by strong demand for AI-optimized personal computers, but warned that rising memory costs would pressure margins.PC makers including HP, Dell Technologies and China’s Lenovo Group are navigating a shortage of memory chips as data centre buildout is sucking up capacity and triggering price increases of smartphones and PCs.That supply crunch is pushing some enterprises toward higher-margin premium PC categories during the Windows 11 upgrade cycle after Microsoft ended support for…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
Discussion
0 commentsMore from The Globe and Mail
