Execs from HP revealed difficulties it is facing with supply shortages during its Q2 results earnings call.
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Reduced supplies are hampering HP's print and PC sectors. Regarding print, HP expects shortages in the supply chain and logistical delays to curb revenues to continue throughout 2022, with some improvement towards the end of the year.
From a PC standpoint, the supply issues are primarily due to one of HP's PC component suppliers, which is struggling with production in one of its factories. This will impact shipments in Q3, although HP believes it will recover in Q4.
Despite these setbacks, it has been a good quarter for HP overall, which gained $16.5 billion in revenue, representing a 4% growth year-over-year.
Enrique Lores, President & CEO at HP, said: "In Personal Systems, revenue grew 9% to $11.5 billion. This was our highest Q2 revenue ever, reflecting the durability of PC demand.
"We also delivered an operating profit margin of 6.9% at the high-end of our target range. We are managing our PS portfolio with great discipline and are focused on driving profitable revenue growth more than units.
"Our continued mix shift towards commercial and premium combined with our pricing strategy allowed us to more than offset fewer unit shipments in the quarter. Increased spending on hybrid work solutions is driving strong commercial PC demand.
"Personal Systems delivered almost $800 million of operating profit with operating margins of 6.9%. Our Personal Systems business has grown its operating profit margins in 17 of the last 18 quarters.
"This consistent performance is indicative of our strong portfolio, the strong secular tailwinds we continue to see and our ability to deliver results in very different environments."
HP revealed reduced demand in the consumer side of its business, which has been down 6% year-on-year. However, it is still outperforming pre-pandemic levels, and consumer peripherals grew 40%.
Further positive news came from its 3D printing division, which hit double-digit revenue growth. HP also announced its partnership with Legor Group, a luxury jewellery production company, this quarter.
