Hewlett-Packard Co added its voice to the growing debate on the current state of the personal computer market that has erupted with Compaq Computer Corp’s warning of dismal first-quarter earnings. HP chief executive officer Lew Platt told a group of journalists in New York Tuesday that the company’s PC business is strong and expects to see double-digit growth in shipments for the year. He added that Asia Pacific was showing signs of improvement for the company.
Compaq’s assertion that the quarter was severely impacted by a slowdown in PC demand is in sharp contrast to statements from IBM Corp and Dell Computer Corp which seem to indicate that the death of the PC market is far from a reality. Now HP’s comments, coupled with strong earnings by Intel Corp – whose fortunes are inextricably tied to the PC market – make Compaq’s problems seem all the more isolated.
Platt, speaking at the launch of the company’s HP 9000 N-Class Enterprise Server, also reiterated that the company’s guidance for overall fiscal year 1999 performance is consistent with Wall Street analysts’ expectations, which call for between 6% and 8% revenue growth.
