September 01, 2022: -On Tuesday, HP Inc. CEO Enrique Lores told CNBC that he sees indications that commercial customers are spending more cautiously on PCs as macroeconomic uncertainty weighs on enterprises.
Lores’ comments in a discussion come on the heels of a well-documented slowdown in consumer PC demand this year, even as sales of higher-performing machines favored by corporations appeared to be showing a little resilience.
Although, worries about hindering economic growth have intensified in recent months, which promotes concerns that enterprise PC sales would be the next shoe to decrease in a market that saw a Covid-fueled increase.
“What we have seen during the quarter is a slowdown of consumer demand that accelerated as the quarter progressed. We even have started to see some signs of delaying down on the commercial space,” Lores told CNBC after the PC and printer maker reported mixed results for July 31.
Quarterly sales of $14.66 billion decreased short of the $15.74 billion analysts expected, according to Refinitiv, while better-than-projected margins helped earnings for each claim of $1.04 match calculations. HP Inc. on Tuesday reduced its full-year earnings forecast for fiscal 2022, which ends in October.
While the “overall situation we believe is temporary,” Lores said reports of engaging freezes and downshifted impact HP Inc.’s commercial business.
“We think this is driven by the macroeconomic situation that we are facing,” Lores added, noting there “hold been more and more companies being cautious regarding how to manage budget and be careful about how many new employees they hire,” Lores further said.