HP 2010 Annual Report Download - page 3

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POWERFUL TRENDS AND
A WAVE OF INNOVATION
ARE RAPIDLY CHANGING
THE TECHNOLOGY
LANDSCAPE. AT HP,
WE ARE INVESTING TO
LEAD THE EVOLUTION
OF THE INDUSTRY, AND
WE CONTINUED TO
BUILD OUR PORTFOLIO
THROUGHOUT THE YEAR.
HP’s Enterprise Business grew 7 percent
year-over-year, led by 21 percent growth
in Enterprise Storage and Servers.
Industry Standard Servers, Blade Servers,
and BladeSystem Matrix products
continue to lead their categories with
exceptional growth. In networking, we
gained momentum throughout the year,
culminating in 227 percent year-over-year
growth in the fourth quarter, aided by the
acquisition of 3Com Corporation and more
than 50 percent growth in our ProCurve
networking products. Services and
Software held steady, growing roughly
at market. As HP moves increasingly to
deliver more solutions, we expect to scale
our services and software businesses
more rapidly.
In the Personal Systems Group, we
demonstrated the strength of our balanced
portfolio with growth in both commercial
and consumer sectors. Overall, revenues
grew 15 percent year-over-year and
operating margins increased. In a very
competitive environment, we did a good
job of maintaining our No. 1 position in
worldwide market share, as well as healthy
average selling prices. We continue to
differentiate through strong design and an
outstanding customer experience across
a full line of offerings that range from
high-end gaming PCs to sleek, powerful
notebooks to fashion-inspired netbooks
and innovative smartphones.
In the Imaging and Printing Group, a
similar pattern emerged with growth in
commercial and consumer sectors. For the
year, IPG grew 7 percent over fiscal 2009
levels, while still delivering more than
17 percent operating profit. At the end
of fiscal 2009, we committed to placing
more units and regaining share in 2010.
For the full year, we grew units by 13
percent, growing LaserJet by 20 percent
and Inkjet by 11 percent. Strong customer
response to our new line of innovative
web-connected printers helped us grow
revenues and maintain attractive margins.
Our growth initiatives in commercial
print, graphics, and retail publishing also
continued to gain solid traction with major
new customer engagements and thousands
of high-profile retail publishing solution
placements. Billions of pages a year are
moving from analog to digital, and we are
exceptionally well-positioned with leading
intellectual property to capture these high-
value pages.
From a regional perspective, we saw a
broad-based global recovery with growth
of 11 percent in the Americas; 7 percent
in Europe, the Middle East, and Africa;
and 16 percent in Asia Pacific and Japan.
Going forward, we are focused on moving
beyond being a multinational company to
being a truly global one with both deep
local expertise and a comprehensive world
view that brings the full value of HP to all
customers.
INVESTING TO LEAD THE
EVOLUTION OF THE INDUSTRY
Powerful trends and a wave of innovation
are rapidly changing the technology
landscape. At HP, we are investing to
lead the evolution of the industry, and we
continued to build our portfolio throughout
the year. In fact, HP had the largest and
best product releases in its history in
fiscal 2010, from the data center to the
cloud and from PCs to printers. With
Superdome 2, we added a powerful new
solution for business-critical systems.
A LETTER FROM THE CEO
HP ANNUAL REPORT
|
2010