HP Korea in emergency over excessive inventory of laptops

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HP Korea in emergency over excessive inventory of laptops

디지털데일리 발행일 2014-10-02 09:39:41

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-50,000 laptops in stock, outnumbering the total shipment during the first half
-Looming restructuring and other uncertainty factors

HP Korea is suffering from increasing inventory of personal computers. The difficulty facing HP Korea is raising worries about the PC market in general because the company has enjoyed a leading market position in Korea among foreign PC manufacturer despite the overall decline of the global PC market in the aftermath of the rising popularity of smartphones and tablets, through efforts to find a breakthrough, such as the expansion of B2B business.

According to plural industry sources, HP Korea has over 50,000 laptops in stock, the number exceeding the total shipments of laptop computers during the first six months of this year, 47,000. Its shipments of PCs during the second quarter of this year also fell short of expectation. It shipped 53,000 desktop PCs and 34,000 laptops during the period, which are a 29 percent fall from the previous three months and an 11.6 percent fall from the same period in 2013.

To solve the inventory problem, HP Korea has introduced diverse marketing tools since the beginning of the third quarter, such as trade-in sales and additional discounts for those who bring tablets. But internally, the company is reportedly left in agony over the inventory that shows no signs of decrease.

Uncertainty factors, such as restructuring, have also negatively affected PC business of HP Korea. The company, which marks its 30th anniversary this year, has started restructuring under the guideline from its head office. It is expected to lay off about 100 employees under the condition that it pays them severance benefits amounting to a salary for 15 months. The Enterprise Business Division will likely be dealt the biggest blow but the Personal System Group, which is in charge of PC business, is not likely to totally escape the blow.

An industry observer said, “Despite the growing inventory of PCs, it is difficult to observe any efforts for self-improvement inside the company. For example, they still stick to the marketing tools that are not much different from old ones.”