HP claims 50 billion pages printed on PageWide printers in the past year.
HP Inc. gave security analysts an update on how the company is doing since it spun off from Hewlett-Packard nearly a year ago. ENX has reviewed the presentation and background materials and pulled out items of interest to the dealer community. Here’s what we found:
● CEO Dion Weisler sees commercial and consumer worlds blending, a trend that affects all of HP’s products. Driving this trend are the expectations and behavior of millennials, greater use of mobile devices, demand for more security, the everything as a service model, and the emergence of blended reality.
● HP’s managed print services (MPS) business has seen 13 consecutive quarters of revenue growth, based on constant currency.
● Its graphics business has grown constant currency revenue for 12 consecutive quarters. Digitally printed applications such as packaging, signage, marketing collateral, and decoration are growing three times faster than conventional.
● Successes on the consumer side include 25 percent year-over-year growth in mobile pages (2 billion total), and a 20 percent increase in HP’s Instant Ink program with a 90 percent retention rate.
● HP claims that 50 billion pages have been printed using PageWide technology in the last four quarters. In technical department production, PageWide adoption has grown by 30 percent in the past year.
● On the supplies side, HP sees opportunities for growth through hardware innovation and focusing on units with proven supplies profitability, efforts to encourage print relevance and growing contractual sales of supplies, and optimizing pricing.
● HP sees its inkjet/laser unit shipment mix shift toward a higher lifetime gross margin per unit band. It expects a 5 percent growth in the top bands through 2017.
● Contractual supplies sales are expected to grow from 15 percent of total to more than 35 percent by the end of 2021.
● Office printer growth will be driven by better security, innovations such as JetIntelligence and PageWide, and enhanced MPS offerings.
● Strategy for the graphics market includes targeting packaging and signage applications, partnering with brands to improve time to market and offer more personalization, and reinventing printer service provider operations with cloud connectivity, automation, and better collaboration capabilities.
● As a whole, HP expects to be on track to cut $1 billion in costs. Part of that cost cutting appears to be coming from planned job cuts of 3,000 to 4,000 globally between 2017 and 2019, according to a separate SEC filing. It’s not clear where those cuts will be made.
