Toni Sacconaghi: Thank you.
Enrique Lores: Thank you.
Operator: Your next question comes from the line of Asiya Merchant from Citigroup. Please go ahead.
Asiya Merchant: Great. Thank you for the opportunity. A little bit on inventory. If you could just comment on how you look at the inventory in the channel, both on the PC and the Personal — on the Print side as well? Specifically, in PCs, I think there was commentary that there was some elevated ones, when you spoke about it last quarter, not for HP but generally for the industry in general. And then, if you can just talk about the cadence of EPS? As you progress, if the second half is going to be stronger, I think, as was commented earlier, you’re starting the first year — first quarter up 10%, if math is correct, and you’re ending for the year at 5% for the year. So, if you can just kind of walk through that, that would be great. Thank you.
Marie Myers: So — good afternoon, Asiya. So, why don’t I just start out on the EPS sort of seasonality and how to think about it. So, in terms of Q1, just to sort of give you some context there, a third — we usually have corporate other expense that hits in — from a seasonality perspective, a third of that hits in Q1. So, if you look at our Q1 guide, just bear that in mind because that’s typically the stock comp expense period. So, as a result of that, you’re going to see that seasonality adjustment in our Q1 EPS. And as you correctly said, we’re actually up, I think, 11% on the midpoint year-on-year in our Q1. But we’re — SAM guide, I’ll just reiterate, of $325 million to $365 million, hasn’t changed. And just to close, Q1 is just really typical seasonality.
And then, if you think about channel inventory, both Personal Systems and Print were in really healthy shape, and we’re pleased with where we landed in terms of the progress we made this quarter. I would add on Personal Systems that we’ve seen declines sequentially and that we are really now back to much more normalized levels. And in fact, the industry levels themselves are also normalizing. And you can see that in terms of the quality of our pricing in the last quarter as well. So, I think looking back, we’ve seen CI really return back to more normalized levels, particularly in Personal Systems and in Print as well.
Asiya Merchant: Great. And if I can squeeze one more in on components, deflationary expectations, I think there was some commentary previously on how you think about components.
Marie Myers: Yes. It’s very much in-line with our SAM guide in terms of forward-looking. We expect both Print and PS to be headwinds for the year. And as we look into Q1, we do expect a headwind in PS, but a slight tailwind on Print. And then, in terms of just what you’ve seen in the quarter, we’ve seen tailwinds — sorry, tailwinds and favorability on Print as well, but definitely headwinds for both businesses for the year.
Asiya Merchant: Great. Thank you.
Operator: Your next question comes from the line of Aaron Rakers from Wells Fargo. Please go ahead.
Unidentified Analyst: Hi. This is Jake on for Aaron. Thanks for the question. I was hoping you could give some additional color on the amount of promotional pricing for PCs you expect to see heading into the holiday season and maybe how this could compare to prior years.
Enrique Lores: We expect to see a similar level of aggressiveness that we were seeing before channel inventory was high. And at this point, what we know about the holiday season is that based on the selling, the shipments we have been making, the strength of our portfolio, we have very good assortment on the stores. We have just introduced significant innovation across our full portfolio. So, we are optimistic about the holiday season in the coming weeks.
Unidentified Analyst: Great. Thanks. And then, I was also wondering if you could talk a little bit more about the growth you’re seeing in Poly and maybe some of the momentum you expect with the new as-a-service subscription offering.
Enrique Lores: Sure. We continue to be very bullish about the opportunities that we have with the Poly business. Of course, during the last week, it has been impacted — during the last quarter, it has been impacted by macro. But feedback we get from our channel, from our customers continues to be very positive. As you said, we just introduced both new technology in the systems and the new as-a-service model, which we think will help us to drive growth in 2024. And really the opportunity to grow and to innovate continues to be there. From a process perspective, we are now finishing the IT integration based on the plan that we shared a few quarters ago. We have been driving the process as per plan. And again, we are happy with the progress we have made. I’m really optimistic about the opportunities this business is going to bring to us.
Unidentified Analyst: Great. Thank you.
Enrique Lores: Thank you.
Operator: Your next question comes from the line of Erik Woodring from Morgan Stanley. Please go ahead.
