Rival stocks retreat with the launch of new 3D printers
HP Inc. (HPQ) is stepping up its pursuit of revenues in the nascent 3D printing market. HPQ is looking for new ways to stimulate growth amid softness in the desktop computer and traditional printer markets. In February 2018, the company expanded its line of 3D printers with the launch of what it described as low-cost, full-color 3D printers.
HPQ unveiled its new Jet Fusion 300/500 3D printer series on February 5, 2018, and said that it was launching the industry’s “first 3D printing technology to enable manufacturers to produce engineering-grade, functional parts in full color, black or white” in a fraction of the time of rival solutions.
The launch of HPQ’s Jet Fusion 300/500 series rattled rival 3D printer makers. Stratasys (SSYS) stock fell ~3.7% on the day HPQ unveiled its new 3D printers, while 3D Systems (DDD) stock fell ~5.8% on the day.
Product aimed at SMB market
HPQ’s Jet Fusion 300/500 series has a starting price in the $50,000 range. They are targeted at small to medium-sized product development teams and design businesses. The printers are also presented as suitable for research institutions. HPQ already sells industrial-grade Jet Fusion 3D printers.
The new Jet Fusion 300/500 series printers are expected to start shipping in 2H18.
$22 billion in revenues in the 3D printer market
HPQ has a significant revenue opportunity in the 3D printer market. According to Research and Markets, the global 3D printing market is expected to expand 30.2% per year over the next few years to reach $22.2 billion by 2022. The market was estimated at $5.9 billion in 2017.