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HP2-H65 exam Dumps Source : Selling HP Personal Systems Services 2018
Test Code : HP2-H65
Test Name : Selling HP Personal Systems Services 2018
Vendor Name : HP
Q&A : 35 Real Questions
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HP Selling HP Personal Systems
HP has currently announced in a statement (embedded beneath) that its device as a service (DaaS) company would be increased with Apple gadgets, together with iPhone, iPad, Mac, and the Apple Watch.
This essentially ability that HP will beginning selling Apple instruments to its valued clientele as part of the DaaS providing – this application has been launched to permit agencies to buy new hardware with a subscription, in place of pay upfront.
All Apple instruments blanketed in the application will benefit from HP help, managed functions, and analytics, identical to all the other products which are at present accessible as a part of HP’s DaaS. the entire one hundred channel companions the world over will deliver businesses with the option to purchase Apple devices, the company says.
“With the launch of DaaS for Apple, HP is offering the main multi-OS equipment administration answer and raising the bar on provider beginning,” noted invoice Avey, world head and well-known manager, own programs features, HP Inc.
“Our expanded aid for combined operating device environments across every section of the gadget lifecycle, mixed with our endured expansion into VR and statistics analytics, is proposing sensible, simplified options for the modern workforce and unlocking new growth opportunities for our clients, our channel companions, and our business.”
increasing in Microsoft’s playground
while this kind of circulation makes experience for HP due to the fact it’s planning to expand its DaaS offering, it’s additionally the residing proof for Microsoft that Apple is a extremely aggressive participant in the business market.
Microsoft is having a bet big on companies with cloud functions and products like the floor lineup, and Apple’s enlargement into this market with support from groups like HP, that have been once unique Microsoft companions, can’t be first rate news for the utility large.
HP, youngsters, says it expects the commercial device market to develop greatly within the coming years, estimating that by 2020, there may be some 9 billion such devices global with a typical of four items per user.
No result discovered, are trying new keyword!via its own programs and printing element of its company mannequin, HP is capable of provide enterprise and technology options to millions of consumers, in addition to other corporations. It partners with ...
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Selling HP Personal Systems Services 2018
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No result found, try new keyword!Through its personal systems and printing portion of its business model, HP is able to provide business and technology solutions to millions of consumers, as well as other businesses. It partners with ...
NEW YORK (CNNMoney) -- Hewlett-Packard announced Thursday that it will continue selling personal computers after all, reversing an earlier decision to exit one of its core business lines.
The company shocked Wall Street and the tech industry alike when it announced Aug. 18 that its board was exploring "strategic alternatives" for its Personal Systems unit. That division mainly comprises HP's PC business, which is the world's largest. A sale or spin-off were two of the options being considered.
Yet HP (HPQ, Fortune 500) now says it believes that PCs should be part of its future.
"It's clear after our analysis that keeping the Personal Systems Group within HP is right for customers and partners, right for shareholders, and right for employees," Meg Whitman, the new CEO HP named last month, said in a written statement. "HP is committed to PSG, and together we are stronger."
The company said it believes the PC business is too ingrained in the company's supply chain and other key HP operations to let it go. Computers also help promote HP's brand, and are a crucial part of the company's "one-stop shop" services that it offers to corporate customers, HP said.
HP's analysis also showed that spinning off the division would be so costly that it outweighed any benefit of dropping PCs.
The decision to ditch PCs came two months ago from then-CEO Leo Apotheker, who favored HP's fast-growing, highly profitable software and server businesses over its low-margin computer business. HP's PC unit was one of the industry's most profitable, but the company still only squeezed out about a 5% margin on the devices.
Apotheker also noted that PCs aren't flying off the shelves any more. Mobile devices like smartphones and tablets have begun to eat into PC sales.
"The tablet effect is real," he said in August. "Consumers are changing the ways they use PCs."
0:00 / 3:40 HP's decade of mistakes
HP's announcement sparked an uproar from many technology analysts. They called an all-in bet on software and services a risky decision for HP, considering that its services business has gone practically nowhere and its software business makes up just 2% of the company's sales.
Hardware has long been HP's cornerstone, and PCs making up a third of the company's revenue. Despite its recent struggles, HP still sells more PCs than any other vendor, shipping 16.2 million PCs last quarter -- enough to give it control of 17.3% of the market, according to Gartner.
Killing off the PC could confuse HP's customer base, some analysts noted -- particularly after the high-profile merger with Compaq 10 years ago that made HP the world's top PC maker.
Apotheker was fired the month after his strategy announcement, though current CEO Meg Whitman said upon her hiring last month that Apotheker's plan to exit PCs would still be considered.
But the company on Thursday drove a final stake into the heart of the Apotheker era.
"As part of HP, PSG will continue to give customers and partners the advantages of product innovation and global scale across the industry's broadest portfolio of PCs, workstations and more," said Todd Bradley, head of HP's Personal Systems unit. "We intend to make the leading PC business in the world even better."
HP (NYSE: HPQ), one of the largest PC and printer makers in the world, is often dismissed as a slow-growth mature tech stock. Yet HP met or beat analyst expectations on the top and bottom lines for ten straight quarters, and its stock rose nearly 10% this year -- compared to a 2% decline for the S&P 500. However, I think HP's stock deserves to climb much higher next year, for three simple reasons.
1. Growing core businesses
HP split with Hewlett-Packard Enterprise (NYSE: HPE) in late 2015. HP retained the company's PC and printing businesses, while HPE retained the enterprise hardware, software, and service businesses.
Image source: HP.
Sales of HP's PCs and printers have risen steadily since that split. Here's how the two businesses fared over the past year:
Personal Systems (PCs)
YOY revenue growth. Source: HP quarterly reports.
HP's PC sales were buoyed by robust demand for its higher-end laptops and convertibles, along with higher sales of its Omen gaming PCs. HP's shipments have risen year-over-year for ten straight quarters according to IDC.
IDC claims that HP controlled 22.8% of the PC market during the third quarter of 2018, placing it in second place behind Lenovo (NASDAQOTH: LNVGY), which received a market share boost from its takeover of Fujitsu's ailing PC unit earlier this year. However, the recent allegations of Chinese espionage against motherboard manufacturer Super Micro -- along with the charges against ZTE, Huawei, and other Chinese tech companies -- could cause more US companies to purchase HP's PCs instead of Lenovo's, even though Super Micro isn't one of Lenovo's suppliers.
HP's sales of printers remained positive in both the consumer and commercial markets, the latter of which received a big boost from the takeovers of Samsung's printing unit and office equipment dealer Apogee. The commercial unit is also diversifying into industrial 3D printers, which could become a major growth engine in the near future.
Image source: Getty Images.
2. Stable operating margins and earnings growth
HP's operating margins remained stable as it grew its revenues, indicating that it isn't aggressively selling lower-margin products or over-expanding its operations to stay competitive. Lower prices for components -- especially memory chips -- are also supporting the PC unit's profitability.
Operating margins. Source: HP quarterly reports.
HP also consistently repurchases shares to boost its EPS and tighten up its valuations. Over the past 12 months, it spent $2.6 billion -- or 64% of its free cash flow (FCF) -- on buybacks. It also approved a new $4 billion buyback plan (equivalent to 11% of its market cap) earlier this year. Those buybacks contributed to HP's solid EPS growth over the past year.
YOY EPS revenue growth. Source: HP quarterly reports. *Includes gains from recent acquisitions.
For the full year, HP's non-GAAP EPS grew 23% to $2.02 per share, and it expects that figure to rise to $2.12-$2.22 in fiscal 2019, which would represent 5%-10% growth. Those earnings will easily cover its forward dividend yield of 2.5% with a payout ratio below 30% -- which gives it plenty of room for future hikes.
3. Discount valuations
At $23, HP trades at less than 11 times this year's earnings estimate. It also trades at less than one times this year's revenue estimate of $59.4 billion, which would represent 1.5% growth from 2018.
Analysts expect HP's EPS to grow at an average rate of 12% over the next five years. Based on that forecast, HP has a 5-year PEG ratio of 0.9. Since a PEG ratio below 1 is considered "undervalued", HP's stock looks cheap relative to its long-term growth potential.
The key takeaway
Investors are likely avoiding HP due to fears of tariffs, a cyclical slowdown in PC sales, and a belief that higher-yielding bonds are more reliable income investments. However, I believe that HP's widening moat, stable growth, low valuation, and decent dividend make it a dependable long-term investment in a volatile market -- so I'm not selling my shares anytime soon.
More From The Motley Fool
Leo Sun owns shares of HP. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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