Things looking up in the printing market
February 24, 2010 by Steve HannafordPosted in: Dealers & Channel, In this week's e-newsletter, Latest News & Views
Excellent news from Hewlett-Packard sent its price soaring this week. The company saw a 25% jump in profits over the last quarter, after a long spell of declines.
Much of the uptick came through an increase in personal computer sales, a market where HP is the world leader. But sales of printers (another area where HP is the leader) saw a sharp rise as well.
According to a Wall Street Journal article (“H-P Net Rises 25% on Strong Demand,” 2/17/10):
“Along with its strong PC sales, HP’s printing division also exceeded analysts’ expectations and helped relieve some Wall Street concerns about a recent decline in printer revenue. The division reported a 4% revenue increase, with commercial printer unit sales up 11% and consumer shipments rising 18%.”
In fact, HP could have sold more printer units but ran into supply problems. The article explains that printer profit was flat year-over-year, but that the revenue from the sale of new printers is not immediately realized, since printers are sold at a loss in expectation of consumables revenue.
Expectations were that other companies in the computer and printer industries should see similar increases. HP, according to the article, is seen as a bellwether in the tech industry.
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Tags: Hewl, Hewlett-Packard, HP, printer sales
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