HP Inc revenues down 12 per cent as customers wait for Windows 10 on Skylake

Sales down across the board, but HP Inc may benefit from new Intel Skylake microprocessors this year

HP Inc, that part of the old HP that sells PCs and printers, is struggling with life on its own. In the first quarter to the end of January, it reported revenues down 12 per cent compared to the same quarter in 2015.

Even allowing for the currency fluctuations, the $12.2bn revenue in the quarter represented a five per cent real-terms drop.

Personal Systems were down 13 per cent, year on year, with a thin 3.1 per cent operating margin. Total units sold were down 13 per cent, 8 per cent in laptops and 13 per cent in desktops.

Sales of hardware have been falling across the board due to fluctuating exchange rates, the launch of Windows 10, and the Intel Skylake chip range, the latter two causing many potential buyers to wait before purchasing.

However, the expectation of analysts is that with Windows 10 now well out of the door and Intel releasing more and more Skylake-based microprocessors, PC sales ought to improve - with HP one of the brands that should benefit.

Trendforce analyst Anita Wang said of a recent report, "HP and Lenovo will still be rivals for the top spot in the notebook market during 2016. HP has a good chance of holding the most market share this year and maintaining its leadership position because of the relatively stronger US market."

Printing revenue was down 17 per cent, with hardware down 20 per cent and supplies down 14 per cent, despite growing criticism of the printing industry for the giant profit margins on printer supplies. Printing supplies represent 80 per cent of the company profits.

As part of the announcement, the company confirmed that 3,000 people will now exit the business by the end of the 2016 fiscal year, instead of over three years as originally suggested.

Before the demerger, the old-HP business has predicted that 33,300 jobs would go over three years, of which 1,200 would be in the new HP Inc side of the business during 2016.

Hewlett Packard Enterprise (HPE), the other side of the old HP, is expected to report on the 3 March.