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HP predicts market rebound in 2010

HP has added to the growing chorus of suppliers anticipating a general market rebound in 2010, predicting that it will grow faster than the industry average.

HP has added to the growing chorus of suppliers anticipating a general market rebound in 2010, predicting that...

it will grow faster than the industry average.

At its Securities Analyst Meeting in the US, Mark Hurd, CEO talked up HP's wide-ranging portfolio of products and services and pointed toward its global reach as reasons for shareholders to be sanguine.

"We expect the IT industry to return to growth in 2010 and believe that HP will outpace the market," he said.

"Our broad product and services portfolio and global scale give HP a clear competitive advantage. As a result, we see tremendous opportunity to grow our business and earnings while delivering value to our customers," he added.

For this fiscal year ended 31 October, HP expects revenues to grow 3% to $117bn, and while cost savings from EDS will continue it will remain on the lookout for further acquisitions.

The printer market, one of HP's major revenue and profit generators has been in the doldrums for most of this year as customers make do with existing fleets, while PC sales have declined in all markets bar consumer notebooks.

Earlier this week Gartner said the worst of the recession was over for the PC market as it upgraded 2009 forecasts in anticipation of growth in Q4, largely on the back of positive shipments in China, the US and emerging markets.

The analyst expects worldwide unit growth of 12.6% in 2010 as consumer demand for mobile PCs continues and corporate customers start refreshing ageing hardware, something that Dell also expects to happen.

Intel, a strong indicator for the health of the PC market has already called time on the recession, a point mirrored by some senior execs in the IT channel.

The positive signs that have recently emerged in the US financial sector will spread to the rest of the economy Cisco CEO John Chambers predicted this week.

A version of this story originally appeared on Microscope.

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