Hewlett-Packard Estimates Fewer Notebook Shipments In 2014 (HPQ)
Hewlett-Packard (NYSE: HPQ) may greatly reduce the number of notebooks it ships next year.
According to DigiTimes, the company is internally forecasting that it will ship 21 million notebooks in 2014. This is significantly lower than the 32 million notebooks it shipped in 2012.
In 2015, Hewlett-Packard's notebook shipments may be limited to just 19 million units.
It is not yet known how many notebooks Hewlett-Packard will ship this year, but the number is believed to be lower than 30 million units.
Even so, Hewlett-Packard is still expected to reclaim its position as the world's leading manufacturer of notebooks. Chinese manufacturer Lenovo (OTC: LNVGY) earned that title and knocked Hewlett-Packard to second place during the last quarter.
Hewlett-Packard's decline comes at a time when the company is trying to achieve success through the growth of other divisions.
"We're two years into a five-year turnaround," she told the network. "There are businesses that are doing quite well. There are businesses that haven't quite turned the corner yet. But overall I'd say we're on track. We've got a lot of heavy lifting ahead but feel good about where we are."
Hewlett-Packard's in-line Q3 results suggest that the company might be on the right track. But even if it can successfully grow its various cloud and IT businesses, the new revenue may not make up for the inevitable loss of the notebook division.
Notebook PCs aren't going anywhere -- not at Hewlett-Packard or anywhere else. But consumers are finding that it is much easier to purchase a cheap tablet to do the bulk of their day-to-day tasks, such as e-mail, video viewing and Web surfing.
Hewlett-Packard has been reluctant to reveal specific sales figures for its tablets, but the discounts are very telling. The company's first major tablet, known as the HP TouchPad, was famously discounted from $499 to $99 a few months after release.
The company's most recent tablet, the Android-based Slate 7, recently dropped from $169.99 to $139.99.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.