HP CEO: "AI PCs Will Account for 60% of Sales Within 3 Years"

Enrique Lores, CEO of HP, which posted better-than-expected quarterly results, expressed optimism about the upcoming artificial intelligence (AI) PC boom. He forecasted that AI PCs will account for 60% of total sales within three years.

[Image source=Reuters Yonhap News]

In an interview with Yahoo Finance following HP's quarterly earnings announcement on the 29th (local time), CEO Lores highly evaluated the potential of AI PCs in the PC segment. He predicted that AI PCs would make up about 10% of PCs sold this year and expand to 60% within three years.

Earlier, HP introduced AI PCs such as the HP Omnibook X AI and HP EliteBook Ultra AI. These models feature AI-based tools like real-time translation and meeting summaries, along with extended battery life. Around the same time, PC competitors including Dell also unveiled new PCs focused on AI capabilities. Yahoo Finance reported, "HP is not the only major tech company entering the new AI era," adding that "several catalysts, including AI PCs and Windows upgrade cycles, are working in HP's favor."

HP's fiscal second-quarter results released that day were better than expected. Quarterly revenue was $12.8 billion, down 0.8% year-over-year but slightly above Wall Street estimates of $12.6 billion. Adjusted earnings per share (EPS) rose 4% year-over-year to $0.82, beating the Wall Street forecast of $0.81.

HP also provided guidance for fiscal third-quarter EPS in the range of $0.78 to $0.92. The annual EPS guidance was set between $3.30 and $3.60.

CEO Lores explained that corporate PC demand has been stronger than expected due to device upgrade and replacement cycles. He pointed out that many companies had been using devices without replacement due to the pandemic's impact, stating, "Both small and large businesses have aging installed bases and are realizing the need for change." However, printer sales continued to decline in double digits due to price pressure from Japanese competitors, maintaining a sluggish performance.

This content was produced with the assistance of AI translation services.