HP Tallies Record Quarterly PC Unit Shipments, According to Industry Report - Company Financial Information

Edge: Work-Group Computing Report, August 2, 1999

Hewlett-Packard Company achieved record quarterly PC unit shipments during this year's second calendar quarter, according to a preliminary report issued today by International Data Corp. (IDC), a leading industry research firm. HP, the world's fourth-largest PC maker, shipped 1.68 million total PCs worldwide during the quarter, an increase of 36 percent over the same period a year ago. IDC reported that overall industry PC shipments rose an estimated 27 percent during the quarter.

HP recorded balanced growth across its wide-ranging PC family. Shipments increased significantly in both Western Europe and Asia Pacific compared with last year, according to the IDC report, and HP OmniBook notebook PCs achieved record shipments worldwide for a single quarter.

"The latest data exemplifies the commitment we made last year to grow our PC business faster than the overall market and to grow it profitably," said Duane E. Zitzner, president and chief executive officer of HP's Computer Products.

In early June, HP outlined a new strategic agenda for its PC business aimed at providing customers higher levels of choice, convenience and Web-enabled accessibility. As a key element in the strategy, HP has greatly expanded its Web-based-selling capabilities.

According to Zitzner, the response to HP's increasingly customer-centric approach to its PC business has been excellent. He noted that HP's recently announced contracts with Rockwell International and FTD were built upon the strategy of providing a process that best matches how customers prefer to buy today.

"We're putting a much more flexible and responsive business model behind our award-winning product family," said Zitzner. "It's not just a customer need today, it's a requirement."

Hewlett-Packard Companya leading global provider of computing and imaging solutions and services for business and home --is focused on capitalizing on the opportunities of the Internet and the proliferation of electronic services.

HP has computer-related revenue of $39.5 billion in its 1998 fiscal year. HP plans to launch a new company consisting of its industry leading test-and-measurement, semiconductor products, chemical analysis and medical businesses. These businesses represented $7.6 billion of HP's total revenue in 19998. With leading positions in multiple segments, this technology-based company will focus on opportunities such as communications and life sciences.

HP has 123,000 employees worldwide and had total revenue of $47.1 billion in its 1998 fiscal year. Information about HP, its products and the company's Year 2000 program can be found on the World Wide Web at http://www.hp.com.