Revenue rose 11% YoY in fiscal Q2 2018
HP Inc.’s (HPQ) Printing segment generated revenue of $5.2 billion in fiscal Q2 2018. Its revenue rose 11% YoY (year-over-year) and 9% on a constant currency basis. The company achieved revenue growth in hardware and supplies as well as in strategic areas such as A3, graphics, and managed print services.
Print units rose 13%, while supplies revenue rose 8% in fiscal Q2 2018. Comparatively, the global print hardware market rose 1.7% YoY, while HP managed to achieve a higher growth rate in the space during Q1 2018. HP claims that it’s a market leader in the printing space due to improvements in its supply chain efficiencies and its low product costs.
At the end of 2017, HP’s market share was 36.5% in the worldwide hardcopy peripherals market. Other top players included Japan’s (EWJ) Canon Group (CAJ), Epson, Brother, and Xerox Group (XRX) with shares of 23.1%, 19.8%, 7.5%, and 2.1%, respectively.
HP’s CEO, Dion Weisler, said, “We are on a journey to reinvent print and our focus on this enabled us to achieve several important and innovative milestones. We launched the HP NVISS Printer to the International Space Station in April, where it is currently in use alongside HP Z-Book workstations.”
The company continues to invest in next-generation printing solutions and is expanding its product categories via the introduction of a mobile-optimized HP LaserJet Pros and HP voice-enabled printing.
We can see that HP has valued the A3 copier market at $55 billion. The company continued to bring new partners onboard and gain market share in A3 in fiscal Q2 2018. HP views this business as a strategic one for growth driven by higher attach rates of supplies and services.
HP also claims that its A3 solutions result in cost savings, increased manageability, and security for customers. ImageNet Consulting managed to lower its service costs by over 15% after using the HP Smart Device Remote Management service.
In fiscal Q2 2018, HP closed its largest-ever packaging deal with ePac Flexible Packaging. The latter is a major player in the web-based digital printing space, and it quadrupled its capacity with HP’s Indigo presses.