Focus on disruptive technology
HP (HPQ) will complete its acquisition of Samsung’s (SSNLF) printer assets by the end of this year. It aims to penetrate the A3 copier space after the acquisition by bringing disruptive technology. In the A3 segment, HP has focused on cheaper printer technology compared to copier technology, which is more expensive and more difficult to service.
While HP is pleased with execution in its core segments, it’s looking to increase investments in 3D (three-dimensional) printing technology. While these investments have negatively impacted EPS (earnings per share), HP is confident about the long-term revenue growth in 3D printing.
HP values the $12.0 billion 3D printing manufacturing industry. Currently, the 3D printed plastics vertical is driving revenue growth and is the largest market in this space. Several companies now realize the benefits of 3D printing, which is expected to significantly drive demand for HP.
Jabil (JBL) is now one of HP’s biggest 3D printing customers. General Electric (GE) has acquired several companies in the 3D market. In fiscal 3Q17, HP launched its 3D printing business in the Asia-Pacific region, the largest manufacturing market globally. HP has expanded into Greater China (FXI), South Korea, Japan, Australia, and Singapore.