Hewlett-Packard Company (NYSE:HPQ), or H-P, recently announced additions to its Elite portfolio, which includes two notebooks, two compact desktops, and a 23-inch touchscreen display. The new offerings provide faster web access, increased durability and are equipped with larger displays. HP Elite products are expected to boost results in the long term and further help H-P to evolve as a market leader in PC shipments.
The company’s latest offerings include HP EliteBook Folio 1040 G1 (notebook version), the EliteDesk 800 G1 (desktop version), the ProDesk 600 G1 Desktop Mini and HP EliteDisplay S230tm (touchscreen version) that features a high-definition (HD) screen that can easily connect to other devices.
These products will enhance the web experience and provide high-quality visuals. Moreover, the new lineup will add variety and functionality to some older notebooks and desktops, which in turn will be able to attract new clients.
Priced at $1,299, the HP EliteBook Folio 1040 G1 is now available in the U.S. Priced at a respective $669 and $489, HP EliteDesk 800 G1 Desktop Mini and HP ProDesk 600 G1 Desktop will be available by April 2014. Moreover, HP EliteDisplay S230tm, priced at $359, will be available in the U.S. from Jan 6, 2014 onwards.
The company is expanding its product portfolio to gain further traction in the PC business. While IDC expects the shift in consumer preference toward tablets and mobile devices to shrink PC shipments in 2013, the research firm expects the rate of decline to moderate in 2014. Moreover, PC shipments are expected to increase 0.4% in 2017, primarily due to growth in emerging markets.
Moreover, to counter the current situation, H-P has been trying hard to shift its focus from its PC-centric business to the high-margin server, storage and cloud computing space. The back-to-back launches of a new BPO (business process outsourcing) solution, a host of desktop printers, two media players and the Moonshot server in the past few months indicate that H-P’s plans are well on track.
However, increasing competition from companies like Accenture plc (ACN), IBM Corp. (IBM) and Oracle Corp. (ORCL) coupled with continuing macroeconomic challenges and tepid IT spending will pose challenges, going forward.
Currently, H-P has a Zacks Rank #3 (Hold).