The personal computer industry continues to struggle with consumes showing strong preferences for I- Phones and I-Pads. Not surprising then that Hewlett-Packard amongst the world’s biggest computer makers, is faced with its own challenges. Investor confidence in the company continues to tumble and the company’s present market cap has tanked to about $54 billion as compared to almost $104 billion a year ago. For the quarter ended January 31, HP’s profit dropped by 44% while revenue fell 7%. To make matters worse, the company’s forecast it is up against weaker-than-expected results for the quarter ending April 31. Overall HP posted fiscal first quarter net income of $1.5 billion compared with $2.6 billion a year ago. Revenue declined to $30 billion from $32.3 billion in the same period. Analysts say that the company’s supply chain is in a complete mess. Floods in Thailand have also hurt it badly. However, the company’s co-chief executive Meg Whitman is hopeful that her plans for cost cutting, investing more in areas such as online cloud computing, security and tools that help businesses manage data, will help HP win back lost ground. Various analysts have also recommended investors to stay invested in the company for the long run. But to win back investors’ confidence, HP will have to try harder and race against the time to make itself health again.
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