After the company released its quarterly earning this week, investors and stock aficionados have noticed that Hewlett-Packard is slowly falling in share value.
This fall is most likely due to the company’s decrease in sale values concerning the PC and printer market worldwide, with companies like Microsoft, Intel, Alienware and other taking the lead in the PC race and Canon in the printer race respectively. Another reason for this fall might be the fact that more and more buyers are opting to build their own desktop PCs or order one to be built instead of relying on pre-built models in order to achieve a higher degree of customization for them to better suit their needs.
By providing discounts for their HP printers and several price drops in their products, HP hoped to at least alleviate the slow downfall of their shares which started with this year, but due to the rise in power of the dollar, their value fell even more when compared to European and Eastern markets.
Their shares dropped about 14% for both the PC side of the company and the printer side as well, bringing their price at one of the lowest prices it has ever been in the last couple of years when the quarter closed on October 31st.
Even the side of the company which usually brings forth the highest percentage from their profits, their market concerning printer related hardware parts, ink cartridges and accessories, has fallen 10% as well, making the company fall even more.
Unfortunately, the future doesn’t look too bright for HP at the moment, one of the reasons for this being their relative non-interest concerning the possibility of the company to branch out in other computer related domains such as mini-computers or VR headset systems.
But not everything is as grim for HP as the ill tidings brought forth by these released quarterly numbers. The sister company known as Hewlett Packard Enterprises has shown an increase in profits of over 8.5% without showing any signs of stopping this rise in the near future, making at least one side of the mother company hold its own and even surpass others in our present market.
Even though Hewlett-Packard is slowly falling in share value with no actual hints of stopping in the near future, the company still holds hope for the next quarters that will come in 2016. They will most likely try to quell this slow fall by further reducing their PC and printer prices in the following years and they might even try to dabble in other computer-related markets, but that is only speculation at this point. Only time will tell if HP will be able to stay afloat or not.