HP Tries To Push PC Sales - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Hardware & Infrastructure

HP Tries To Push PC Sales

It's introducing an upgrade plan that could reduce companies' cost of replacing older machines

One day after reporting flat PC sales during its most recent quarter, Hewlett-Packard said Wednesday it's introducing a new upgrade plan that could reduce companies' cost of replacing them.

HP will take as much as $40 off the price of new corporate desktops and up to $110 off the price of PCs aimed at small and midsize companies under a new "PC migration service bundle" program. Companies can pay as little as $689 for a new d530 desktop that lists for $730, and $389 for a d330 machine, normally priced at $499, under a sales program in which HP installs the new machines and credits customers for the trade-in value of old PCs. The incentive is available directly from HP or through resellers.

HP also introduced IT services designed to assess companies' desktop security, and set up PCs in a wireless network.

"Gone are the days of the beige box," said John Thompson, VP and general manager for HP's commercial PC business in the United States, Canada, and Latin America, at an event in San Francisco to introduce the programs and new business PCs.

Computer makers and No. 1 chipmaker Intel have been desperately trying to convince companies to upgrade their aging fleets of desktop PCs, as sales of the machines have declined after a buying flurry in the '90s. During HP's second quarter ended April 30, its personal systems group earned $21 million, compared with $33 million during the first quarter. Revenue was $5.1 billion, essentially flat from the prior quarter.

Thompson says 164 million business PCs worldwide--and about 30 million in the United States--are more than three years old. That's about 40% of the installed base. With Microsoft preparing to end support for some older versions of Windows this year and hardware failure rates reportedly higher on machines older than three years, buying new PCs could yield productivity improvements that offset their cost. Of course, "not everyone looks at it that way," he says.

Gartner last week predicted that second-quarter PC shipments would increase 6.4% from a year ago, to 30.7 million units worldwide. But the market researcher revised its full-year estimates downward, to 136.9 million units, a 6.6% increase from last year. In February, Gartner predicted a 7.9% rise in shipments.

HP, which merged with Compaq a year ago, has been under pressure from low-cost leader Dell Computer to lower its PC prices. Thompson says HP has reduced PC prices by 10% since the merger was completed.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Becoming a Self-Taught Cybersecurity Pro
Jessica Davis, Senior Editor, Enterprise Apps,  6/9/2021
Ancestry's DevOps Strategy to Control Its CI/CD Pipeline
Joao-Pierre S. Ruth, Senior Writer,  6/4/2021
IT Leadership: 10 Ways to Unleash Enterprise Innovation
Lisa Morgan, Freelance Writer,  6/8/2021
Register for InformationWeek Newsletters
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll