AI PCs account for a quarter of HP’s revenue. The Windows 11 upgrade is also boosting sales.
HP has had a good quarter. The computer and printer manufacturer reported that its PC revenue has increased by 6 percent year-over-year in the third quarter, amounting to $9.9 billion compared to last year.
Selling like Hot Cakes
According to The Register, CEO Enrique Lores reportedly said during a quarterly call that he is satisfied with the increased sales. He stated: “We continue to shift our mix towards higher-value segments, such as AI PCs, commercial premium products, and services.” HP believes this growth will continue, as the figures are also favorable across multiple countries and regions.
“We’re seeing AI PCs perform better than comparable models without that functionality.” HP naturally acknowledges that AI PCs are significantly more expensive than non-AI PCs, which contributes to the rising revenue. The range of applications using AI is also continuously expanding, whether we like it or not. Gartner expects AI devices to capture 31 percent of the total PC market by the end of this year, and 54 percent next year.
Fewer Printers Sold
“Looking at the cycle, we estimate that just over 50 percent of our customers have migrated to Windows 11,” Lores said. “We estimate this trend will continue to rise in the fourth quarter.” He’s probably right, as support for Windows 10 ends on October 14, 2025.
Lores states that the increase is also due to “reducing costs through price adjustments and changes in the supply chain”. HP’s printer sales have declined by four percent compared to last year due to a “weaker office market”. HP was recently named the number one in the global printer market, based on last year’s figures.