The first quarter of 2021 brought a lot of optimism to Hewlett Packard because it was said that the new product launch “Jet Motor” would be their next big hit. This was indeed a good sign for HP considering that they are in the computer hardware market. Nevertheless, this was short-lived due to the release of “Dream Team” in January, which didn’t live up to expectations. Then, in July, the company released “Workstation Pro” which didn’t do so hot either. And now with the recent release of their new ProLiant rack, HP is experiencing some tough times in terms of sales.
With the recent earnings report, it is apparent that things aren’t going so well for the computer manufacturing giant. Looking at the net earnings, they actually dropped twenty-one percent year over year. Although not as much as Lenovo and Acer, who released lower-priced products, nevertheless, the decline was substantial. Comparing the net earnings to the same period last year, the net earnings dropped forty percent. If these numbers are compared to their revenues, it is quite clear that HP needs to revamp its product line if they want to continue moving forward.
Analysts say that the main reason why HP lost its momentum in the personal computer market is that consumers are simply switching from brands like Dell to brands like HP and Acer. They feel that Dell laptops are more reliable than HP laptops. And with so many models hitting the market, there are just too many choices. With all the competition, it is hard for companies like HP to make a name for themselves in the industry.
However, with new products hitting the shelves every other day, it is clear that HP has not lost its place in the personal computer market. If anything, they are gaining more ground in certain segments. For example, they have managed to maintain their high share in the small to medium-size markets. If you look at the sales of HP notebook in the past few years, you will see that their sales have not dropped. They are still growing in their share in this segment.
Looking at the bigger picture, we can clearly see that HP is still on the right track. Their latest models are still selling like hot cakes in the consumer market. Despite the recent setback, their future products are all beating expectations. In fact, they have already created a stir in the computer world.
One of the most talked-about products released recently by HP is the Envy 15pn. This is their first full-sized laptop. With an increase in the demand for them, the manufacturing of the product is being increased. Hence, there is already enough supply when compared to the demand. It is therefore expected that this new product will outdo the sales of previous models.
The recent setback caused by the recall is, however, doing its work to bring HP back on track. It is though, only a temporary victory for them. There are still other competitors out there who are still beating HP sales and that includes IBM.
We can only hope that HP will be able to overcome this setback and regain its foothold in the personal computer market. There are still other competitors out there who are also luring people with their beautiful designs and cool features. HP may just have to follow suit as the competition is getting tougher. When it comes to creativity, HP needs to step up and make its products reflect its excellence. Only then will they be able to regain the customers’ trust.