HP is solid as i get over jet lag

Another early start, as London today for one of our events, I am not speaking due to the fact I only arrived back in the country yesterday. Today is all about meeting the team who are working on the report with me, and doing some background research on the topic. I shall be meeting the other speakers and asking questions about strategy formation.

HP has a solid quarter in EMEA

HP announced its quarterly earnings yesterday for EMEA and this can be reported as more solid that spectacular. However, that has to be set in the context of a very good last quarter. On the whole HP out-performed the market, and reported that is was seeing excellent growth in the emerging markets such as Russia and the Middle East.

Once again the trend in the Personal Systems Group (PSG) was that notebooks continue to grow, with revenues up 31% and units 46% demonstrating that prices are continuing to fall in a very competitive market. Desktop revenues were flat and units up only 2%. These figures indicate that HP is moving more units in the commercial sector and is getting this balance correct; both the commercial and consumer sectors grew 17% and 16% respectfully in terms of revenue. This balance enables HP to ensure it maintains a strong presence in the highly influential consumer sector, where I believe many innovations are being piloted by home users, then being translated to industrial use, for example Skype.
Technology Solutions Group (TSG) saw the software division grow by 28% and now represents 7% of this group’s revenue. The biggest highlight is that blades are continuing to grow and HP reported a near 60% market share in EMEA. Add to this the EDS acquisition then this group should continue to see good growth prospects.