HP's printer business, the market demand downturn twilight – market demand downturn, Hewlett-Packard's printer business, twilight
The foreign media Zhou Erzhuan text, due to the downturn in market demand, coupled with weak economic situation, HP's printing business will face a greater threat, and may impact on its overall performance. The following is the text of the article:When struggling IT giant Hewlett-Packard report quarterly earnings tomorrow, most analysts expect the company to achieve even more than the already sluggish expectations.However, HP was critical to the print market is facing major problems. HP's Imaging and Printing Group (hereinafter referred to as \"the IPG\") for the company contributed about 20% of the income scale than enterprises as well as servers, storage and network operations.Most print vendors, the IPG model is as follows: Hewlett-Packard will usually sell at a loss the printer, and then in the life cycle within the next few years, make up the losses through the sale of ink cartridges and other supplies.In this field, HP is the king. The print market report released last week by U.S. market research firm IDC shows that HP's overall market share exceeds 41%. According to IDC estimates, the HP 2011 printer sales reached twice the size of its nearest competitor, Canon 2 to 4 manufacturers (Canon, Epson and Samsung) is not and Hewlett-Packard a market ranking.Then the problem lie? The printing business is growing decline. According to IDC estimates, the 2011 full-year overall market volume increased by only 0.7 percent, while HP is no growth, the printer shipments even fell by 0.7%. Canon, Samsung and Brother shipments increase.Sales in key market further highlights the current weakness in the status quo. For example, the IDC data show that the U.S. printer market shrink by 9 percent in 2011, Hewlett-Packard sales decline of more than 12%. Hewlett-Packard printer sales in the United States throughout the year 4.2 million units, less than 4.8 million units in 2010.The slowdown in hardware sales one of the most prominent problem only. Do not forget, the HP printer is to sell at a loss, the real profit comes from supplies. The results of supplies at the moment but it is very bleak: of IPG last year's overall revenue unchanged, the 2011 annual sales of $ 25,780,000,000 and $ 25,760,000,000 in 2010, but sales of supplies decline.You might think that this is not important, but when you find the supplies sales accounted for more than two-thirds of the total income of the IPG, they will not think so: Printer Consumables annual income of $ 17 billion, and year after year to maintain growth However, in 2011 to turn down. Cartridge sales usually lag 6-9 months newer printer but the printer will also contribute a certain performance. The service period of the printer up to a few years, in the meantime will continue to consume the ink cartridges.Cartridge sales decline on the impact of IPG earnings amplification: from 17.1 percent in 2010, IPG's operating profit fell to 15.4 percent in 2011.If the market trend is not enough to drag on HP's printing business, economic and environmental factors still have a potential threat. Canon in Japan for the supply of key components of HP laser printers, which led to two key issues: the impact of the earthquake and tsunami of Japan suffered last year, logistics costs have risen; the yen-dollar exchange rate strengthened more additional cost .Conclusion: The print has become one of HP's long-term advantage, if people reduce the amount of print, it will compress the printer needs. If the printer is reduced demand for cartridge sales will be reduced. Which this adverse world's largest printer company. Wait for Hewlett-Packard on Wednesday announced the earnings call, we'll see just how bad. (/ SAN)
