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Archive for the ‘HP’ Category

HP posts strong results for Q1

Wednesday, February 20th, 2008

HP yesterday reported an upbeat profit report and forecast. As the whole tech sector in the US has been struggling, with even Google seeing a 5% drop in its share price over worries that online advertising would be cut HP’s results were very important for the whole sector because their product spreads across PC’s, Servers, Storage and of course Printing.

They reported a 38 percent profit rise over the period, showing that they were managing very well through a difficult economy due partly to strong sales in overseas markets, which account for moe than two-thirds of total revenue.

Notebook comuters, server computers and software all showed revenue improvement, although the printer division showed some weakeness where consumer usnit sales fell 2 percent, although overall revenue rose in the division.

HP was helped by cost cust and strong sales abroad as US tecnology spending slowed on recession concerns. But HP faces a tougher environment this year as consumers and companies reduce spending on technology hardware and competition with a resurgent Dell, the number two PC maker hots up.

The imaging and printing group, which includes printers and printer supplies had revenue growth of 4 percent, to $7.3 Billion, and an operating margin of 15.7 percent, up from the earlier periods 15.3 percent.

We will be seeing all of the major printer manufactueres reporting during the next few weeks, and I would expect that HP will be strongest amongst them all. Interesting times that we live in!.

Black Clouds loom for HP and Staples

Thursday, December 20th, 2007

HP and Staples in trouble?

It must have been last April when HP and Staples in the States announced that henceforward Staples would only be stocking HP original ink cartridges, and would dispense with their own brand refilled cartridges. Our immediate thought was that there must have been some deal done because our experience is that our customers like to have choice when it comes to selecting their cartridges.

Well, call me cynical, but the brown stuff seems to be hitting the fan as a Mr Ranjit Bedi of Pacific Palisades, California has filed an Antitrust lawsuit in a US District court in Boston (all nice and local there then!) alleging that the two plaintiffs (HP and Staples) have entered “an illegal agreement between competitors to stop competing” in which HP paid Staples market development funds to stop selling non-HP-branded ink-jet printer cartridges for HP printers. The suit alleges HP paid Staples, the largest U.S. specialty retailer of office supplies, more than $100 million in MDF (Market development Funds) to stop selling lower-priced printer cartridges for HP printers. Nowhere does Mr Bedi explain how he determined the sum of $100M.

HP released a statement denying the claims of the lawsuit. “HP denies that it has engaged in any anticompetitive conduct,” the statement said. “HP is confident, therefore, that after the relevant facts are presented to the judge it will be determined that our business relationship with Staples has been and is entirely proper.”

The suit asks for class-action status and says the actions violated the Sherman Act and Clayton Act, which prohibit noncompetitive behavior. It seeks unspecified money damages and asks the court to stop HP and Staples from engaging in noncompetitive acts. As a non lawyer this means nothing to me, but probably means that someone somewhere is going to make loadsamoney in various courts.

HP Sales exceed $100 Billion for the first time

Wednesday, November 21st, 2007

HP Turnover increased:

HP have just announced glowing sales and profit figures, which have been very well received by all. For the full fiscal year 2007, HP rang up $104.3 billion in sales, a 14 percent improvement over last year and the first time HP has cracked $100 billion in annual sales. Net income for the year was $7.26 billion, or $2.68 per share.

HP currently commands about 20 percent of the worldwide PC market, compared with Dell’s roughly 15 percent, according to the latest data from market researcher IDC.

But HP’s most profitable business is printer ink. The company derived 42 percent of its $2.63 billion total operating profit in the latest quarter from its Imaging and Printing Group, nearly twice the amount contributed by the Personal Systems Group, which includes PCs

HP coming out of Camera production

Monday, November 12th, 2007

HP has announced that it will be offloading its digital camera business to a third-party manufacturer.

The company will sustain its brand through the holiday season and will seek out an original equipment manufacturer (OEM) to take over the production and distribution of all HP digital cameras.

The cameras will retain the HP branding, and the company expects to take a $30m charge as a result of the move.

HP said that it will focus on its printer business, and in particular its Print 2.0 campaign. Printers and inks accounted for roughly 25 per cent of HP’s $25bn in revenue in the most recent quarter.

Cartridge wars

Friday, November 2nd, 2007

HP launches two-pronged defence

There are lies, damned lies, and press releases. The battle for inkjet cartridge mindset and consumers’ cash has long been a contentious issue as the OEM printer manufacturers strive to protect their very profitable piece of turf in a market worth $25 billion worldwide. Printer manufacturers successfully play on fear, uncertainty and doubt (the so-called FUD factor) while their competitors play successfully on lower prices and environmental benefits, despite the FUD propaganda.

The latest battle in the war of words takes the form of a two-pronged strike by HP. The first arm of its pincer movement was the recent publication of a comparative report claiming better page yields and higher quality results from HP brand cartridges compared to refills. The firm’s second strike against the refiller market was the announcement that its new cartridges now come in two sizes, with one costing much less (and printing fewer pages).
The authors of the comparative report claimed that “European research firm Innovationstechnik proves original HP inkjet cartridges print more and are more reliable than alternatives”. Since the report was commissioned by HP, it is fair to assume we may never have heard about it if the researchers had reached the opposite conclusion.
The report concluded that HP ‘originals’ print 34% more pages than compatible alternatives and 69% more than refilled cartridges. The commissioned report also concluded that more than one in five compatible alternatives was dead on arrival or failed prematurely and that one in three refills was DoA or failed prematurely. The test covered 1,000 inkjet cartridges from 16 established European suppliers, including Pelikan, Staples, Tesco, Cartridge World and Vobis.

HP’s advertising in Britain recently led to a complaint to the Advertising Standards Authority by the UK Cartridge Recyclers Association by suggesting that using refilled cartridges was like “eating used food” and by suggesting that the environmental benefits of recycled cartridges were of little significance.

After collating material from focus groups, market research and help desk calls, HP concluded that its inkjet customers’ profile can be broadly divided into two groups. One comprises low-level users who want low prices. By contrast, the second group prints more pages and is more concerned about long term values and infrequent intervention rates. So now HP provide two cartridge sizes. Its Standard pack prints about 200 pages (rated by the ISO/IEC 24711 system of calculating yield), and costs £7.99. The Value pack has more ink, yielding about 1,000 pages and reducing the cost per page by between 35 and 55%, HP claims. A third type, the photo cartridge, will be available for some printers for premium quality and enhanced performance.

All major OEM suppliers are caught up in ink wars. Epson’s main battle is with the compatible cartridge manufacturers - of which there are hundreds in Asia, according to Iain Friar, Epson’s European IP manager. He says Epson has a robust patent enforcement policy, with 25 infringement cases settled in Europe in the past 18 months.
Friar said a high proportion of printers returned to service centres contained non-Epson cartridges. He said most problems resulted from dirty ink, bubbles, and the use of conventional ink in printers designed for pigments, which have different characteristics.