HP…$104,000,000,000.00 BILLION IN SALES
HP…$104,000,000,000.00 BILLION IN SALES
2008-01-02 at 2:19:00 pm #18932
HP LatAm sales grow 33% in FY07
Latin American sales of US tech giant HP grew 33% in fiscal year 2007, ended October 31, compared to FY06, HP’s Latin America and Caribbean president Rui da Costa told BNamericas.
Globally, net revenues for FY07 were US$104bn, a 15% increase from the previous financial year.Da Costa was unable to say if Latin America was the fastest growing region for the company in FY07 or not but said, “I do know that Bric countries [Brazil, Russia, India and China] grew approximately 37%, so there are other countries showing strong growth,” he said.Although the executive would not comment on expected growth in the region for fiscal year 2008, he said the services and software areas offer the highest growth potential.”We have made several acquisitions of software companies to complement our solutions portfolio, all of them aligned with a strategy of offering a vast variety of solutions, from the entry points to the company’s most critical infrastructure. So services and software will be the areas where we see the strongest investments in Latin America in 2008,” he added.
In line with its expansion plans for Latin America, HP plans to open a global delivery services center in Panama in May 2008.HP, which is currently the third largest player in the Latin American services industry, expects to focus its investments on two services divisions: consultancy and integration; and outsourcing.
In 2007, HP’s sales in Latin America were driven by the Personal Systems Group (PSG), with sales of PCs and laptops leading growth.”Our strategy was to manufacture in Brazil and this market saw explosive growth. In addition to PC sales in general, the growth of the PSG division was also driven by sales of laptops, where we have almost a 36% market share in the region,” da Costa said.”Undoubtedly there is a tendency towards the adoption of laptops, not only because of falling prices but also because of the trend towards mobility and the possibility they offer to be always online. Desktop sales will continue growing, particularly among SMEs, but laptops will grow in the residential and corporate segment,” he added.
INDIA:We sold 60 mn printers last year: HP’
Back in 2000, when Vyomesh Joshi took over as executive vice-president of Hewlett Packard’s (HP) Imaging and Printing Group (IPG), many thought that in a post-internet era, printing is a declining business. However, under VJ, as Mr Joshi is popularly called, IPG has grown in revenue from about $19 billion to $28.5 billion and doubled its operating profit to $4.3 billion. Now, VJ spearheads HP’s shift from a mere printer making company to a printing company with strategies like print 2.0, a web based printing service. Mr Joshi took time out from a busy one-day trip to India to talk to ET about new technologies, HP’s focus areas, print 2.0 and more. Excerpts:
Where do you see growth coming from?
In 2007, our revenue has grown to $28.5 billion and operating profit to $4.3 billion. We can continue to grow revenue by 4-6% a year and make an operating profit of 14.5-15.5%. There is a huge opportunity out there enabling this.There are 48 trillion pages printed in the world. In unit market share (that is printers sold world wide) we have 46% share. We sold 60 million printers last year. In page market we have 1.6% share. That’s because out of the 48 trillion pages printed only 8% are digital and out of that we have 1.6% market share. By 2010, we expect that over 50 trillion pages will be printed a year.
How can you tap the 92% market which is printing using analogue solutions? Is it cost effective to opt for digital printing?
I believe things will change. Look at what happened to photography. With digital images we are better than the earlier silver halide process and dark room film development. Digital images compete very well on costs and print faster. What used to take two minutes to print (a photo) now takes five seconds. Once you offer this kind of difference, things will flip. You have to think about the breakevens and then offer solutions to people that make sense.Now, in analogue and digital printing if the number of pages you print cost the same it may not be very attractive for users to switch. But as volumes rise, say marketing collateral’s running into 2,000 pages or more, it will be cost effective to use digital printing technologies. If you need more printing, the market will shift to digital solutions as it is faster, cost effective and better.
Google and others are talking about cloud computing and applications residing on the internet. Wouldn’t this reduce the need for printing?In certain cases, the need for printing could reduce but not in all cases. For instance, take imaging. Photo books is a big thing now. People are not printing just 4’x6’ images but complete picture books now. It is high-margin business for us. When things go digital customisation, personalisation, organisation are going to be the three key things. People may not print everything but they will print more of whatever they do.For instance, if a family visits a concert and takes pictures of them seeing the live concert, the crowds, the artist and capture the whole mood they could publish a personal photo book of their experience at the concert. I believe more printing will happen in 2010 than in 2008.
How has Snapfish (a web-based photo sharing and print service) acquisition helped HP?
When we bought Snapfish (in 2005) we had 11 million customers. Now, we have 45 million customers globally. With Snapfish people can share pictures easily and print at home or send it to a print service provider.In the US Wal-Mart, Walgreens and small and blog retailers use Snapfish. It’s a powerful way for customer to take their content, combine with professional content and do some very interesting things, like make their own photo books.
HP recently announced Print 2.0 strategy. What exactly is this?
It’s a web-based printing service with an expanded portfolio of printers and imaging products, and a host of alliances and relationships that serve the growing markets.The Print 2.0 strategy focuses on three areas: delivering a next-generation digital printing platform that increases print speeds and lowers the cost of printing for high-volume commercial markets; making it easier to print from the web; and extending our digital content creation and publishing platforms across all customer segments. The goal is to capture a more significant portion of the 50 trillion pages expected to be printed by 2010.With Print 2.0, we’re leveraging the power of the web as a gateway for our customers to communicate, collaborate and publish their content in ways they could not before.