The macro economy, Europe, blah blah blah. The simple fact is, the previous CEO committed an enormous blunder (for which he was handsomely rewarded) and that pain will be felt for many quarters to come.
It's no surprise that some mistakenly thought HP was getting out of hardware altogether. It's also no surprise that there may still be some uncertainty about HP's commitment to hardware, considering the $10 billion acquisition of an analytics company. That's a staggering sum for a company that insists it is not trying to re-make itself into a software company. It almost makes the Palm acquisition look like pocket change.
Whitman said HP's biz in China was especially impacted by the fact the company considered getting out of that biz. Some mistakenly thought HP might get out of all hardware altogether, she said. Whitman is committed to PCs now, despite their low margins.