Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you quantify the impact of the China tariffs on your guidance, and how do you expect this to trend through the year? A: Karen Parkhill, CFO: We've included the added costs driven by the current tariffs in China in both our Q2 and full-year guidance. By the end of FY 2025, less than 10% of our revenue will come from China and be subject to tariffs. We're leveraging our global supply chain network to mitigate this impact and moving production around the world.
Q: What are the key drivers for HP's Personal Systems growth, and how do you expect to outperform the market? A: Enrique Flores, CEO: We expect the market to continue growing, especially in commercial. Key drivers include the aging of the installed base, Windows 11 refresh, and the penetration of AIPC.s. We're focusing on premium categories and leveraging our strong sales team and innovation to drive growth.
Q: How confident are you in achieving the significant EPS growth in the second half of the year? A: Karen Parkhill, CFO: We're confident due to expected improvements in both revenue and costs. We anticipate more pronounced PS seasonality, continued mix shift to premium, reduced commodity costs, and incremental savings from our future-ready plan. These factors, along with our momentum, give us confidence in our EPS ramp.
Q: Can you provide an update on the adoption of AIPC.s and any changes to your projections? A: Enrique Flores, CEO: We expect AIPC.s penetration to be around 25% by the end of this year, slightly higher than previously projected. Our long-term projection remains at 40-50% penetration by 2027, with average selling prices 5-10% higher than traditional PCs.
Q: How is the competitive environment in the print business, particularly in China, affecting your strategy? A: Enrique Flores, CEO: The competitive environment remains stable, and we continue to focus on profitable growth. We've grown share in the premium space, especially in home printing, and are committed to driving profitable growth by focusing on more profitable customer segments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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