Focus on gaining traction in addressable markets
In 2016, HP (HPQ) management stated that it wanted to stabilize revenue in fiscal 2017, and last year, management aimed to gain traction in addressable markets to “capture the future,” as described in a 2018 press release. HP believes the total available market (or TAM) across its strategic business segments is worth approximately $560 billion. Over $300 billion is in HP’s core segments, Printing and Personal Systems.
HP is looking to find pockets of opportunity and growth within its core segments to drive revenue. It has valued the TAM for A3 copiers at $220 billion and has repeatedly stated that it aims to disrupt the copier space with unique technology.
HP might gain traction in the graphics vertical
HP is optimistic about long-term opportunities in the graphics vertical. The demand to convert graphics from analog to digital has driven growth. HP does not have any foothold in analog and this transition is likely to benefit the company over the next few quarters.
HP management has valued the 3D printing space at $40 billion, taking the overall TAM to $560 billion. The company is investing in disruptive 3D printing technology. There are considerable short- and long-term opportunities for HP, which we’ll look at in this series.