Enrique Lores, HP CEO, joins 'Money Movers' to discuss PC and AI computer demand trends and the impact of tariffs on business.

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

HP CEO Enrique Lloras stated that demand for PCs, especially those with AI capabilities, remains strong and is performing as expected. He noted that the company has already surpassed its target for AI PC sales and expects continued growth in this segment. Lloras addressed concerns about the impact of tariffs, explaining that HP has diversified its supply chain, implemented cost-saving measures, and, in some cases, raised prices to offset additional costs. He emphasized that the overall effect of tariffs on HP's business has been minimal and that global demand remains robust. In the printer market, Lloras described a mixed environment, with slower recovery in office and consumer segments but steady or slightly stronger demand in industrial printing.

HP CEO: Tariffs are mostly nonmaterial

One of the biggest players in the PC market joins us for an exclusive interview after just finishing speaking at the event. Let's bring in HP CEO Enrique Lloras. Enrique great to have you back. Welcome. Thank you. Thank you for having me here. So what are you seeing overall in terms of appetite for spending by the enterprise right now. I think that the market is behaving as we were expecting. There are some areas like a PC and the PC overall driven by Windows Refresh where we see strong demand is what we were expecting at the beginning of the year. And this is really what is happening as well. So I would say demand is strong. I'm performing as we were expecting in the business space. You have a IPC is growing double digits for this quarter now making up I think a quarter of your of your product mix. Where does that go. What kind of runway for growth is there on the A.I. PCs. Yeah we are very pleased with the progress we have made on a IPC. The mix this year this quarter was more than 25 percent which was our objective for the next quarter. So we're we're we're we're quarter ahead. And we think that demand is going to continue to grow. They bring capabilities that you couldn't do with previous pieces. So we think demand is going to sustain for some time now. Enrique can you get to a full offset of the tariff effects. We are doing a lot of things to mitigate the impact of the changes in the trade environment. We have diversified our supply chain. We have taken additional cost actions. In some cases we are driving price increases. When we look at the overall after some time we think we can compensate for for the overall cost increases that the new environment is going to bring. The other question we had a few days ago on the heels of some retail earnings was whether or not we are cycling into a replacement window after everyone sort of either upgraded or bought new equipment during Covid. Has it been. Has it been long enough. Yes we think this is one of the drivers of demand. The life of PCs is about four or five years. So we are starting to see the need to replace the products that we bought that were bought during Covid. And this is one of the drivers that we think is behind demand as well as the transition to Windows 11 as well as the expansion and the creation of the category. What about printers specifically there because there were questions of how long that would take to recover post Covid. I think in printers we see a more mixed environment especially in the office side where companies are prioritizing AI and other investments. We have seen a slowdown of demand in the consumer side in the industrial side. Demand has performed as we were expecting or slightly stronger. And on tariffs. Carl mentioned about about offsetting and mitigating. Has has the tariffs created any kind of pull forward in demand as businesses race to get ahead of tariffs as prices. You said you had to raise prices a little bit as they kicked in. We haven't seen a big pull in because of studies. We estimated a quarter ago that this was less than 1 percent. I would estimate this quarter is even lower than that. So really non-material. And we've done a lot of work to try to calculate that. And we really don't see that having a major effect. Think also that our company is global and the demand that we see is strong globally. So really not driven by what is happening here in the US.

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HP CEO: Tariffs are mostly nonmaterial

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