A widespread resurgence in PC demand is not quite materializing yet, despite initial hopes and expectations.
HP Inc. Reports Disappointing PC Sales
Recently, HP Inc. disclosed lackluster results for its Personal Systems segment in the first quarter of the fiscal year. The revenue from this division, responsible for PC sales and related products, totaled $8.8 billion, marking a 4% decrease from the previous year. This figure fell short of Wall Street’s consensus, set at $9.28 billion.
Slow Impact of AI PCs Predicted
CEO Enrique Lores of HP Inc. mentioned that the influence of AI-powered PCs would be relatively minimal in fiscal 2024. Anticipated substantial effects on outcomes are expected to manifest in the years 2025 and 2026.
Best Buy Also Struggles
In a similar vein, Best Buy unveiled disappointing figures in its computer and mobile phone segment during its fourth-quarter earnings report. The domestic same-store sales for this category saw a 4.2% decline compared to the prior year.
Intel’s Forecast Falls Short
The recent revenue trends align with Intel’s somewhat discouraging outlook. The leading computer processor manufacturer projected a revenue range between $12.2 billion and $13.2 billion for the March quarter, significantly lower than the consensus estimate of $14.2 billion.
Outlook Remains Uncertain
Analyst John Vinh from KeyBanc Capital Markets highlighted that the recovery in PC demand seems to be inconsistent, as the softness observed in the fourth quarter persisted into early 2024.
As evidence mounts, it becomes increasingly clear that a swift revival in PC demand is not on the immediate horizon.