HP lost 15% of its annual revenue, but expects the market to recover with the advent of AI computers

In the last fiscal year, which ended on October 31, HP generated revenue of $53.7 billion. This is 15% less than the previous year, according to The Register.

Pre-tax profit amounted to $2.39 billion last year, compared to $4.32 billion a year earlier.

“We knew from the start that it could be a tough year. The challenging external environment constrained demand across the industry, and this is reflected in our full-year results,” HP CEO Enrique Lores commented on the results.

In the fourth quarter, the company generated $13.8 billion in revenue, down 6.5% year-on-year. Revenue in the personal systems division decreased by 8% to $9.4 billion, and in the printing segment by 3% to $4.4 billion. Pre-tax profit for the year increased from $647 million to $852 million.

At the same time, HP predicts that next year the business computer upgrade cycle will begin, and more and more corporate clients will migrate their computers to Windows 11. But it is the emergence of computers with artificial intelligence, according to Enrique Lores, that signals better times.

“The emergence of the AI PC in 2024 will start a new cycle of market expansion and refresh… we believe this can double the overall PC category growth rate over the next three years,” he said.

By the way, in September, HP debuted a 17-inch Spectre Fold laptop on the market, which aims to compete with similar offers from ASUS and Lenovo.