Making a hard copy takes a device, often a personal computer, to create a document or presentation and a printer to transfer words and images to paper. That’s pretty much the business of HP Inc., one of two companies created from the breakup of Hewlett-Packard Co. HP makes 60% of its revenue from personal systems (notebook computers and desktops) and 40% from printers and supplies such as ink. It’s the No. 1 printer company and No. 1 commercial PC maker in the world ( Lenovo is tops overall). About half of revenue comes from customers in the Americas. Even after the breakup HP and sibling HP Enterprise (HPE) would rank in the Fortune 100.
Sales of notebook computers account for a third of HP Inc.’s revenue, followed by printer supplies such as ink cartridges, at 26% of revenue. The business of actually selling printers is 16% of HP’s revenue and its split between 10% for commercial printers and 6% from consumer printers. Desktop computer sales bring in about a fifth of revenue and workstations about 6%.
Some 46% of HP Inc.’s revenue comes from sales to customers in the Americas. Customers in the Europe, Middle East, and Africa region generate 25% with the Asia-Pacific region and Japan accounting for 19%.
Sales and Marketing
HP markets its products directly, as well as through a wide range of third-party channels, including retailers, resellers and distributors, and original equipment manufacturers, and systems integrators.
Most financials aren’t available from HP Inc. yet, but when it was part of the former Hewlett-Packard its revenue was $57.3 billion (compared to HPE's $53 million revenue). Moreover, the high-margin printer business was the former company’s biggest profit maker.
Fortunately for HP Inc. the vision for the paperless office hasn’t come true. The company pegs the printer market at $234 billion and still growin. People in offices and homes still want to print documents and images and many of them do it with HP printers and HP ink. For years the printer business profits helped pay for other Hewlett-Packard units that had a hard time finding traction. Now HP Inc. can take some of that money and invest in research and development. With its Multi Jet Fusion 3D printer HP is moving beyond images and words on a page to objects. It also is looking at what are called A3 printers that handle 11 inch by 17 inch sized paper as well as the standard 8 ½ by 11 inch pages. Managed-print services is another area receiving serious attention from HP.
The PC side isn’t as cheery. Overall PC shipments have declined for several years for just about all PC makers. The state of the PC has even driven HP and competitors such as Dell and Lenovo to run an advertising campaign touting new capabilities for PCs running the Microsoft Windows operating system (Microsoft also is part of the campaign).