HP’s Earnings Call Dance: Tumbling Revenues Yet Hopeful Chord

Sifting through the decline, HP rolls out its new groove: Localized AI, Redefined PCs, Hybrid Print needs, and Everything-as-a-Service.

High points from Enrique Lores:

• Localized AI needs new architectures
• Redefining the PC
• Hybrid is changing the print need
• Everything as a service

HP reported total printing revenue of US$9.35 billion, down 5 percent over last year. Included in that number was supplies revenue of US$5.86 billion, down 5 percent; commercial printing revenue of US$2.15 billion, up 3 percent; and consumer printing revenue of US$1.34 billion, down 11 percent. All depressing numbers are below analysts’ expectations, according to Seeking Alpha.

Lores gave a sparkling review of the immediate future talking about how HP will play in the hybrid work environment with an integrated office approach that includes solutions from Poly, the peripheral and voice conference giant.

AI is pivotal in HP’s view of redefining the PC. A theme emerging in technology is that AI will be localized per company, because of privacy and security requirements. This will force new processing chips and internal architecture – two factors that will lead to refreshed demand for hardware. Lores said, “… these new architectures are what we are working on both with the key software vendors but also the key silicon providers. … Because of the value that these new applications will have for customers, we see a tremendous refresh opportunity.”

When asked about HP’s strategy for print in a hybrid work world, Lores said office requirements will change going forward as businesses move from large centralized copiers and large printers towards decentralized environments while looking to reduce the cost per copy.

For Office Technology providers, the most interesting statement was for Lores, “As we have shared before, our goal is to be able to offer all of it as a service, either as a contractual service on the office side or as a subscription for consumers, which is also a big opportunity for us going forward,”

Key takeaway –

Not only Xerox dealers, everyone who sells office technology must consider broad “everything-as-a-service” models that include new hardware, localized AI solutions, smaller output devices, and remote print solutions.

I cannot stress this enough – the models of the past will not sustain you. Explore the many possibilities of AI, today. Check out more, here.

– Greg Walters, Head Writer