Hewlett-Packard Company (HPQ)’s Rise Does Not Compute

Furthermore, Apple’s Mac sales slid 22% this holiday season from the same period a year ago. It marked the first time in more than six years that Apple’s Mac sales have not grown faster than the overall PC market, which shriveled 6% during the same quarter.

The kind of news does not bode well for HP. Whitman has much more than slipping PC sales to deal with. She came in amid a failed spin-off attempt, a bungled acquisition and in the wake of two CEOs who were shown the door.

Whitman squashed the decision to spin off HP’s PC division and plans to reduce headcount by 29,000. Following the earnings release, Whitman warned of a tough 2013. So don’t look for HP shares to “boot” up too much more.

It’s not only diminishing PC sales at HP that should be a cause of alarm for investors. Weak printer shipments, the overall decline of the market and future contract losses in services are also grave and mounting concerns. The sale of printers, copiers and related services add approximately 17% to HP’s revenue. But the segment is under pressure as it continues to carry the lion’s share of reined-in corporate spending.

So while HP’s latest news was better than expected, it was nothing to get excited about. Fundamentals remain weak at best. There are no “undo” buttons for that.

The article Hewlett-Packard’s Rise Does Not Compute originally appeared on Fool.com and is written by Diane Alter.

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