14 DAY TRIAL // HP's business really works. I'd say that not only it works but it works well. So well that they are preparing for a final assault on IBM, the actual No. 1 holder when it comes to tech related companies. HP's fourth quarter earnings report showed that all its businesses are performing optimally and its sales are expected to be bigger than IBM's by the end of 2006.
HP has recently increased as a company mainly because of its printer line. I have to say that printing has always been a good deal for HP but recent innovations such as cheaper ink/laser cartridges have propelled the company even higher that they were expecting. Actual corporate sales increased operating profits by 47% to $4.7 billion USD while sales regarding the PCs have upped by 10% to $7.8 billion USD. About this BusinessWeek sais:
"Overall revenues grew 7.2%, to $24.6 billion for the quarter, impressive for a company the size of HP. For the year, HP pulled in sales of $91.7 billion, a 6% increase. That's a smidgen ahead of IBM's projected annual sales, making HP tech's biggest player. HP generated $11.4 billion in cash for the year, up from $3.3 billion the year before. That leaves it with $16.4 billion in cash, up from $13.9 billion at the end of the previous year."
I think that HP will dethrone IBM especially because of their printer line that sells very well. Combine it with the fact that IBM no longer produces CPUs for Mac and you'll see why this is a complete victory. Long live the king!