HP believes that the printer market still has lots of potential, as it just announced that it is buying Samsung’s Printing Business Unit. High-speed printing of multiple copies is key in the copier business, and among Samsung’s many printing patents are key laser printing technology patents HP will be able to use.
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Almost two years ago, HP announced plans to split into two publicly traded companies: Hewlett-Packard Enterprise (infrastructure, software, services) and HP Inc. HP now has 36 percent of the printer business, with Epson, Brother, and Samsung in second through fourth place, respectively. But in the printer market, HP sees a big future in 3D printing, and would like to be a leader in that nascent market.
HP Inc faces an uphill struggle as printing declines, yet the acquisition of Samsung’s printer business gives them access to the copier industry, a $55 billion market which has not innovated in decades.
Nearly simultaneously with the $1.05 billion Samsung deal, HP launched an A3 portfolio containing 16 new next-generation HP PageWide and LaserJet platforms slated to go on sale in mid-2017.
Still, revenue in HP’s printing division fell 14% to $4.42 billion in the latest quarter, while total sales fell about 4% to $11.9 billion. Samsung’s printer business has 6,000 employees and a production base in China. In a press release, HP described copiers as outdated, complicated machines with dozens of replaceable parts requiring inefficient service and maintenance agreements. The transaction is expected to close within one year, subject to the appropriate regulatory approvals.
HP already has a laser printing portfolio with Canon. Samsung developed the printing engines used in its own laser printers, while HP has always used external suppliers for these components. The acquisition allows HP to integrate the Samsung printer business’ products, including its mobile and cloud user experience, with HP’s PageWide technologies.
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“HP Inc has been a valued partner and customer of Samsung”, said Dr Oh-Hyun Kwon, vice chairman and CEO of Samsung Electronics.
