3 Reasons why HP are bucking the market trend

Total revenue was $14.5 billion, analysts had been modeling $13.465b. The share price increased by as much as 9.3 percent in late trading yesterday.

Having worked for HP for 7 years and witnessed a lot of changes from the inside of the organisation, I have my own thoughts on this turnaround. There are many factors that contribute to this great success under the stewardship of Dion Weisler, but I think that I can condense these down to three big ones.

Both the PC and the Printing business had been starved of investment into R&D for many years. This changed when Dion took control, and the result of that change of strategy is that HP have returned to their heritage as one of the most Innovative companies in the industry.

When you compliment these technical innovations with great aesthetics, some of these products are beautiful, then you have something that becomes hugely desirable.

Whilst many of HP’s competitors, particularly in the print market, have become obsessed with driving their costs down, HP have been obsessive about making their products more secure. This has proven to be a very good move, as Cyber-Security has become one of the biggest concerns for organisations, large and small.

The result. HP now supply ‘The Worlds most Secure PC’s and Printers’.

Whilst Security and the Product functionality/features and aesthetics are all important, let’s not kid ourselves into thinking that the price doesn’t matter.

This is where HP have really taken control of the market, by providing all of the above at a market connected price.

HP are riding a big wave at the moment and I am aware of future products and innovations that will help them to ride that wave for many quarters/years to come.