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HP Inc’s “outlook for printing” analysed

HP Inc’s “outlook for printing” analysed

February 27, 2017

HP Inc’s “outlook for printing” analysedMarket analysts have predicted the OEM’s plans for printing moving forward.

Market Realist noted that the “rising use of supplies” will form “one of HP Inc’s key objectives”, where it is expected to “place hardware units with a higher usage of supplies”. In the OEM’s first quarter results last week, the supplies sub-segment “accounted for 67 percent of total printing revenue” compared to 62 percent in 4Q16 and 64 percent in 3Q16.

This follows the OEM’s statement last June that it would “harmonise” global pricing and “improve margins over time” in the supplies business, with Market Realist adding that the OEM is “looking to make a one-time investment to reduce the level of supplies inventory across channels over the next two quarters”. HP Inc also expects the “trajectory” of the revenue in the supplies business to “stabilise” this year.

In 2016, the revenue from the printing business fell 14 percent year-over-year, but was “limited” to a two percent year-over-year fall in the latest results, and “now, with the supplies business stabilising” and the OEM’s 3D printing investments, the business “might drive revenue over the long-term”.

Market Realist then went on to look at the “major players in printing”, with Canon “notably” a “big HP competitor”, and which reported “a rise in unit sales in its laser printer business” in the fourth quarter of 2016, after a “decline during the first nine months” of the last financial year. Revenue from its inkjet business conversely fell 11.1 percent year-over-year, while Xerox saw a 12 percent year-over-year decline in equipment sales during the fourth quarter.

Citing IDC data, the market analysts noted that the OEM leads the global hardcopy peripherals market with a 37.9 percent market share as of the third quarter of last year, a slight decline from 38.6 percent in the corresponding period in 2015. Canon, Epson, Brother and Samsung followed with respective shares of 19.6 percent, 18.3 percent, 7.1 percent and 3.3 percent, while laser printer sales fell 10.5 percent year-over-year in the fourth quarter, an improvement on 14.6 percent the year before.

Categories : City News

Tags : Business HP Inc Printing

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