HP 2015 Annual Report Download - page 20

Table of Contents

The following discussion of risk factors contains forward-looking statements. These risk factors may be important for understanding any statement in this
Form 10-K or elsewhere. The following information should be read in conjunction with Part II, Item 7, "Management's Discussion and Analysis of Financial
Condition and Results of Operation" and the Consolidated Financial Statements and related notes in Part II, Item 8, "Financial Statements and Supplementary
Data" of this Form 10-K.
Because of the following factors, as well as other variables affecting our results of operations, past financial performance may not be a reliable indicator
of future performance, and historical trends should not be used to anticipate results or trends in future periods.

If we are unsuccessful at addressing our business challenges, our business and results of operations may be adversely affected and our ability to invest in
and grow our business could be limited.
We are in the process of addressing many challenges facing our business. One set of challenges relates to dynamic and accelerating market trends, such as
the decline in the PC market, the growth of multi-architecture devices running competing operating systems and movement to continuous ink supply
systems. A second set of challenges relates to changes in the competitive landscape. Our major competitors are expanding their product and service offerings
with integrated products and solutions; our business-specific competitors are exerting increased competitive pressure in targeted areas and are entering new
markets; our emerging competitors are introducing new technologies and business models; and our alliance partners in some businesses are increasingly
becoming our competitors in others. A third set of challenges relates to business model changes and our go-to-market execution. For example, we may fail to
develop innovative products and services, maintain the manufacturing quality of our products, manage our distribution network or successfully market new
products and services, any of which could adversely affect our business and financial condition.
In addition, we are facing a series of significant macroeconomic challenges, including weakness across many geographic regions, particularly in Central
and Eastern Europe and Russia, and certain countries and businesses in Asia. We may experience delays in the anticipated timing of activities related to our
efforts to address these challenges and higher than expected or unanticipated execution costs. In addition, we are vulnerable to increased risks associated
with our efforts to address these challenges given our large and diverse portfolio of businesses, the broad range of geographic regions in which we and our
customers and partners operate, and the ongoing integration of acquired businesses. If we do not succeed in these efforts, or if these efforts are more costly or
time-consuming than expected, our business and results of operations may be adversely affected, which could limit our ability to invest in and grow our
business.
We operate in an intensely competitive industry and competitive pressures could harm our business and financial performance.
We encounter aggressive competition from numerous and varied competitors in all areas of our business, and our competitors have targeted and are
expected to continue targeting our key market segments. We compete primarily on the basis of our technology, innovation, performance, price, quality,
reliability, brand, reputation, distribution, range of products and services, ease of use of our products, account relationships, customer training, service and
support and security. If our products, services, support and cost structure do not enable us to compete successfully based on any of those criteria, our results of
operations and business prospects could be harmed.
We have a large portfolio of products and must allocate our financial, personnel and other resources across all of our products while competing with
companies that have smaller portfolios or
18
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.