Hewlett-Packard CEO Leo Apotheker on the Company's Forecast and Tablet Strategy

Bloomberg News Anchor Matt Miller welcomed Hewlett-Packard CEO Leo Apotheker to discuss the company's latest forecast and tablet strategy. Apotheker acknowledged that the consumer side of the business was particularly weak, with the PC market showing soft sales across all regions. However, he noted that HP gained shares sequentially in both desktop and notebooks, and that the printer side saw reasonably good performance on the consumer side. Apotheker also discussed HP's upcoming tablet launch, stating that the company intends to be in both the consumer and enterprise markets and will focus on making its tablet a unique product.

Key Takeaways:

• The consumer side of HP's business was a major weakness, with the PC market experiencing soft sales across all regions.
• Despite this, HP gained shares sequentially in both desktop and notebooks, and saw reasonably good performance on the printer side.
• Apotheker stressed the importance of taking a long-term view on the tablet market, which is still in its early stages.
• HP's tablet, expected to launch in mid-April, will target both consumer and enterprise markets.
• Apotheker emphasized that the company intends to make its tablet a unique product that will be attractive in both the consumer and enterprise markets.
• Investors were disappointed with HP's forecast, leading to a decline in the company's stock price in after-hours trading.

Statistics:

• HP's shares declined after-hours following the company's forecast, which fell short of analyst expectations.
• The PC market experienced soft sales across all regions, but HP gained shares sequentially in both desktop and notebooks.
• The printer side saw reasonably good performance on the consumer side, with a slight decline in consumer hardware.

Sources:

• Bloomberg TV, February 22, 2011 (Interview with Leo Apotheker, CEO of Hewlett-Packard)
• Bloomberg NewsinnerHTML