HP CEO Claimed 20% Decline in Print Volume

HP CEO Claimed 20% Decline in Print Volume

HP CEO, Enrique Lores, expressed concerns about the printing segment at Bernstein’s 40^th Annual Strategic Decision Conference, claiming that number of printed pages has declined by 20% since the pandemic.

“I use pages as a proxy because, depending on what happens with pages, happens eventually with devices”, said Lores. He attributed the drop in office print volume in offices to the rise of hybrid work, which has resulted in fewer people working in the office. For home printing, despite a temporary peak during the pandemic, the total number has been declining ever since. Hardware sales have also been decreasing and are expected to continue declining due to a longer lifecycle of purchased products.

This trend is reflected in HP’s financial report. In the first quarter of fiscal year 2024, printing revenue decreased by 5%, with a similar decline of 7% recorded in the second quarter.

HP has been implementing a series proactive measures to boost sales of both hardware and printing supplies. One key strategy, as disclosed by Lores in an interview earlier this year, is to “make printing a subscription.” Most importantly, this business model seems to be exclusive to branded HP products only, with other third-party supplies blocked by a firmware update purportedly for security enhancements. “We lose money on the hardware. We make money on the supplies,” Lores explained.

Additionally, HP introduced the SecuReuse program in May that aimed to support remanufacturers. While future details of the program are yet to be disclosed, it is seen as part of HP’s efforts to regain customer trust and address the decline in its printing business.

Related:

• HP Discloses Fiscal 2024 Q2 Results
• HP SecuReuse – “It’s a Trap”
• HP to Introduce Initiative for Remanufactured Consumables
• HP Abruptly Closes Russian Online Services

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