HP (HPQ - Free Report) unveiled an ultralight premium convertible notebook HP Elite Dragonfly for mobile business professionals.
The 13-inch Elite Dragonfly notebook, which weighs below 1 kg, is equipped with up to 16GB RAM and a solid-state storage (SSD) of up to 2TB. Further, it claims to provide the longest battery life of up to 24.5-hour and features the latest Wi-Fi 6 connectivity. The laptop, which will be available on Oct 25 at a starting price of $1,549, is based on the 8th Gen Intel (INTC - Free Report) Core vPro processor.
Additionally, HP announced two curved monitors. The HP S430c Curved Ultrawide Monitor is expected to be available on Nov 4 for $949 while the HP E344c Curved Monitor will be available on Oct 7 for $599.
HP Rides on Growth in Personal Systems
HP is benefiting from a strong uptrend in Personal Systems business. Investments in new products, services and solutions are yielding results for the company. Rising demand for its notebooks, desktops and workstations on the back of product innovation and differentiations is an upside.
In the worldwide PC market, HP secured the second spot in the second quarter with 23.7% market share per IDC and 22.2% share per Gartner. The company witnessed an upturn in shipment after suffering a decline in the previous two quarters.
In the commercial side of the business, the company is catering to the needs of an increasingly mobile workforce. The launch of the latest EliteBook x360 line-up is a positive in this regard. Further, the roll out of HP Sure Sense across EliteBook and ZBook, leveraging AI, to enable real-time malware protection is encouraging.
Notably, in the last reported quarter, personal systems revenues increased 6% in constant currency and the operating profit surged 51%.
HP to Cash in on the Growing Convertible PC Market
Over the last few years, 2-in-1 devices, which can function both as laptops and tablets have become a growing segment of the PC market. Sale of such convertible devices is a breather for the personal computing devices market, which has witnessed sluggishness in traditional devices.
Per International Data Corporation (IDC) forecasts, unit shipments of personal computing devices, which comprise traditional PCs and tablets, will decline at a CAGR of -2.4% over the 2019-2023 period.
However, 2-in-1s (such as detachable tablets and convertible notebooks) along with ultraslim notebooks together are expected to grow 5% during the same time frame, adds the firm. Whereas the firm predicts shipments of only 2-in-1s to grow more than 3.8% in the period.
We note that the product innovation has helped HP maintain its leading position in the PC market. The expansion of its product portfolio will attract more users that will eventually back HP’s top-line growth going forward.
Zacks Rank & Stocks to Consider
HP currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are Chegg (CHGG - Free Report) and Perficient (PRFT - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Chegg and Perficient is currently projected to be 30% and 10.8%, respectively.
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