HP Inc (NYSE:HPQ)‘s stocks witnessed a massive plunge on Wednesday after it announced that printer business didn’t click amid the fluctuating market situation. As per the reports, the it fell 16.3% amid concerns whether there was a slow-down in PC and printer market.
Insights of The Matter
The recently concluded 4Q2015 wasn’t one of the best three-month periods for the company. It witnessed a massive 14% plunge in revenues from PC and printer businesses. It was the worst ever performance recorded by the company in the previous year ending October 31, 2015. Based on these numbers, HP forecasts that its profit in the on-going quarter will fall below the market expectations.
Different market experts shared their views on this performance of the company. According to Shebly Seyrafi, Analyst, FBN Securities, things turned from bad to worse in the October quarter. Seyrafi further added that things didn’t seem to improve anytime soon.
Reporters also got in touch with the senior management team of HP Inc and response received from them was no different. According to Dion Weisler, Chief Executive Officer, HP Inc., printing business has become a difficult business to handle. Earlier the PC business was considered a great challenge, but the fast increasing competition has turned the wheels in a flesh. At present, printing is a lot more difficult and challenging business than the personal computer business.
This reduction in printing and PC revenues has forced the company to take the traditional route to get rid of competition. It has cut down the prices to compete against printer makers Epson and Canon.
It’s not only home market that’s hurting HP Inc (NYSE:HPQ). Stronger dollar coupled with price cuts has put a negative impact on the overseas business. Weisler is worried about the current market conditions and hopes that HP will manage to bounce back as the time progresses.