HPQ
#Yes, look, I guess, my strategy there has not changed, since we were talking at SAM several years ago.
We're not chasing share for share's sake, and we are very selective about what are valuable units, what we can attach around.
And in a very challenging PC market, that is absolutely the right thing to do.
There has been some fairly significant headwinds.
And so, when I break that down, <UNK>, and I think about consumer and commercial, there is some parts of the consumer market that are not terribly interesting ---+ empty calorie business.
And we're not terribly interested in placing units there.
But we have been doing pretty well in the premium segment, where we have been taking share in the higher priced bands.
And we segment the market, and heat [mack] market fairly significantly.
We did anticipate a challenging operating system transition to Windows 10 on two dimensions.
One was a free upgrade that was, of course, offered.
And the second was the very short transition time, which is normally about three months, which was compressed to under one month.
And what that drove was fairly high Windows 8 channel inventory levels, and that will take a little bit of time to flush.
I guess, the good news is that the Windows 10 feedback is pretty good, and a great operating system is important for the ecosystem in the industry.
So once Window 8 flushes, which may take a little time here in the industry, we should see some stimulation from Windows 10.
Commercial, of course, is a little simpler to understand.
The compares are tough.
This was the peak last year of the Windows XP transition.
But that drives higher profitable units for us, and we are clearly focused on that.
I might clarify that is not our Windows 8 inventory that has to flush through.
We're running nice inventories at Windows 8 so.
Yes, so look, I think in general that is an industry statement.
Right.
If you were to look across, by all reports Windows 8 channel inventory levels are high, and they are on higher side for us as well.
But we are ---+ as an industry looking at having to flush through 8 before 10 really takes off.
And before we move on, the bright spot that <UNK> mentioned around the consumer, the premium consumer segment.
This calendar Q2, we gained 4 points of share with our Spectre X360.
So that has been a long time in coming, and a really nice result to continue to have a great product set in that space.
Yes, I will start first, and then turn it over to <UNK>.
So China remains a very big and important market for us, but it's very competitive.
And but I will say our joint venture with Tsinghua, is actually standing us in very good stead.
We had an excellent quarter in servers in China, quite a good quarter in storage, and a sequential improvement in networking in China.
And so, listen, it's a very competitive market, by local competitors, by international competitors.
But we are convinced that our strategy around the JV with Tsinghua is the right thing to do, and we're already seeing some benefits on just the basis of the announcement.
And I will say for printing and personal systems, personal systems particularly, the consumer segment is pretty soft.
The commercial segment whilst not overwhelming is not as contracted as what the consumer market is.
The printing market is ---+ has been softer than traditionally it has been.
So we continue to watch the market with interest.
We're very interested in the work that <UNK> and the team have done with Tsinghua University.
We think that is a pretty interesting model.
So let me tell you, Technology Services is the crown jewel of enterprise group.
This is one great business, but there is a lag to this.
And part of what you're seeing in as-reported revenue is the currency issue.
But frankly, as you saw our enterprise group revenue decline in 2012, 2013 and 2014, that has a knock-on effect with technology services attach.
The other problem is there was very high technology services attach to our BusinessCritical systems, Itanium for one.
So we are recovering from that.
What I have to say, is the team led by Antonio Neri when he ran Technology Services, is he has done a remarkable job in creating new products, like Proactive Care, Datacenter Care that are actually filling the vacuum that was left by Itanium, and a downward decline in enterprise group hardware revenue.
So you are now ---+ pretty soon just like in storage, you're going to see a shift now to actually as-reported growth in technology services, because the new products are kicking in, the attach rate is at very good levels, and now we have hardware growing again.
So we feel pretty good about the underlying financial architecture associated with enterprise group.
And Technology Services has not only great financial characteristics, virtually every customer needs to attach Technology Services, so they have that ability to service their hardware in their data center real-time, with the biggest footprint of services individuals around the world.
Broadly speaking, our view is not dissimilar to the industry analysts.
We think it will be challenging for the next several quarters.
We are generally aligned with industry on that.
We see it being down high single-digits versus only negative 2% last year driven by the XP refresh.
We see notebooks being stronger than desktops.
We see opportunity in commercial mobility, in accessories, in services.
And the market to me at the moment, reminds me a little bit of the market in 2013, and it really requires a highly disciplined approach to market segmentation, cost optimization, leveraging the 160,000 channel partners that we have around the globe that do an amazing job of adding value to our customer set, and continuing to drive our innovation agenda.
We remained disciplined about not chasing share for share's sake, playing where we choose to play, and winning in those segments.
And we are in a consolidating market.
And inside that consolidating market, we're growing faster than the market.
And if we do that in a very disciplined way, we still see opportunity in the longer term for the personal systems business
But I think as you said, <UNK>, that the next couple of quarters are probably going to be reasonably tough.
But the next several quarters, we think are going to be pretty tough.
(Multiple speakers) It's pretty challenging right there, right now, as I mentioned earlier.
Right.
