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HP Discover event: in business printing, there is still some market growth

Read the 1st part here.

Going into this event, one might have thought that the logic behind HP’s split was to position Hewlett Packard Enterprise as exciting new service-led business driving future growth, and HP Inc. as the duller hardware business, to be hived off with lower growth prospects. However, that would be grossly unfair to the HP Inc. Management Team, led by Dion Weisler, who created a real sense of excitement and commitment to future growth potential. Interestingly, given all the indications that the PPS Division was being led mainly by people from a PC, rather than a Printer background, the main focus of the future growth potential identified at this event appeared to be in the Print business.

Against the general market view that print is in decline, HP believes it can generate increased revenue, by targeting ‘pockets of growth’, leveraging its brand strength, and being selective about where it plays.

Thus, although home printing volumes are declining, HP believes it can achieve growth by reinvigorating the market with a combination of:

  • Innovative new products, including new form factors which make printers more acceptable throughout the home
  • A truly easy to use mobile printing solution, to address the demand for printing on the go from mobile media
  • New services such as Instant Ink, which has been very successful in the markets where it has been introduced, showing extremely high customer retention levels

In business printing, HP believes there is still some market growth, but they are targeting what they have identified as specific pockets of growth opportunity.

The first was a challenge, which they have publicly set themselves, to achieve a market share in A3 printers (where HP’s presence is currently almost negligible) comparable to the dominant position which they have in A4 printers. To achieve this, HP dropped a very strong hint that they will be launching A3 versions of the highly successful PageWide  Office Jet Pro X ink-jet products, to disrupt the market with superior economics, as they have already done in the A4 market.
They showed an A3 print head at the event. However, HP will not focus just on Ink in the business market. They recognise that some customers will continue to prefer Laser. They will therefore go to market with a balanced portfolio, including the new Jet Intelligence products, with the recently announced soft shell toner technology, which makes the new laser printers significantly smaller, faster and more energy efficient.
Initial results for both new technologies are very promising, and if HP can achieve anything like its A4 market share in A3, it will grow its total business very significantly.

Discover the next specific pocket of growth opportunity on next thursday, June 25th.

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This article was written on 23 Jun 2015, and is filled under Business Forecast, Event.


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