HP PC biz to 'lose $100m' in 2001
Hewlett-Packard is set to lose $100 million from its PC operation in 2001, according to Goldman Sachs, Sunday Business reports.
Fierce competition seen HP's PC sales growth to fall from 2 per cent in Q1 to a fall of 4 per cent in Q2. Overall, HP is expected to see PC sales drop 10 per cent in 2001, say analysts cited by Sunday Business.
The paper points out that prices and margins on HP's printer sales have probably peaked. Printers are HP's traditional cash cow, representing 45 per cent of sales and 65 per cent of profits. Laser printer sales dropped 15 per cent in 2000, Sunday Business reports.
HP is also facing huge competition in the enterprise sector on all fronts. Unix boxes, storage systems and computer services are all under fierce competitive pressure. ®