- Sunday, 22 November 2009
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HP profit falls
HP, THE MAKER of jolly expensive printer ink, saw its profits fall by 19 per cent in the last quarter.
Profits have fallen due to weakness in PC sales and the fact that fewer people have been buying outrageously priced printer ink.
According to the LA Times, HP did find a couple of silver linings in its cloud. It said that consumer spending on PCs is improving and that business in China is particularly good.
However it warned that because of the recession 2009 is going to be the worst year in nearly a decade for the PC industry.
HP's PC business declined 18 per cent in the three months ended July 31, even as the number of units it sold rose 2 per cent. Companies are delaying buying PCs this year because of the economic recession. It is possible that they merely are waiting for Windows 7 to show up, but that's an optimistic hope.
HP said that it earned $1.64 billion in its fiscal third quarter. A year earlier the company made $2.03 billion. That was better than what Wall Street had expected but not by much.
Revenue from printing supplies was down 13 per cent. One of those supplies, printer ink, has long been one of HP's biggest cash cows, but that's facing competition from cheap and cheerful alternatives. µ
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... because the HP staff have had thier pay rates cut to shit, so are looking elsewhere for employment and hoping HP will fail.
Big Blue would never do that to its staff... oh... wait...
There is a rumor of a worldwide economic depression. Seems as though the millions of people losing their job every month aren't buying PCs. Seems as though the companies closing their doors are not buying PCs. Whodda thunk?
It's not their products which are failing, even though I have had to send one in three times to get fixed and finally had to take it to BestBuy for repair, it's their award winning Customer Careless Service which is probably the reason people are turning away from HP. I know after my experiences in the last three months I will never own another HP product. They don't stand behind their warranty and apparently have no idea how to fix computer problems. Lastly, their "we have no supervisor" attitude simply compounds the problem. Such a shame.