HP faces challenges: Artificial intelligence, tariffs and lower margins

HP's entry into 2025 will bring a number of challenges that relate not only to PC demand, but also to growing uncertainty about tariffs and the overall economy. The company's CEO Enrique Lores said in a recent interview with Yahoo Finance that he expects any potential tariff increases will likely affect prices for consumers. In addition, results for the fiscal fourth quarter showed mixed results, reflecting continued pressure on consumer PC sales and a positive trend in the commercial segment.

Demand for personal computers has changed in recent months. While consumer PC sales declined 4%, commercial sales increased 5%. HP $HPQ continues to adapt to new trends such as the growing demand for computers equipped with artificial intelligence. Lores explained that the company looks forward to working with the new United States administration and stressed the importance of smooth trade relations between countries. However, there are currently many factors, including tariffs, that can affect…