HP: Expect More PC Pressure

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"In our view, HP's restructuring initiative is a move in the right direction," he wrote, in a note. "However, we remain concerned with the Company's high exposure to Europe (EMEA at 36% in 3QFY12), competitiveness in the PC market (29% of 3QFY12), leveraged balance sheet and longer-term relevance in the enterprise IT market given the Company's current portfolio."

Whitman certainly has her work cut out. From intensifying competition with Apple(AAPL) in PCs, and a rejuvenated Cisco(CSCO) in servers and networking, HP's vast product portfolio necessitates an aggressive war on multiple fronts.

To aid this effort, the CEO has already discussed plans to streamline HP's bewildering array of products, reconnect with channel partners, consolidate marketing and improve internal IT systems.

HP shares climbed 3.5% to close at $13.30 on Monday, but dipped 0.08% in extended trading.

--Written by James Rogers in New York.

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