*NEWS*HP:$104,000,000,000.00 IN SALES

Toner News Mobile Forums Latest Industry News *NEWS*HP:$104,000,000,000.00 IN SALES

Date: Wednesday January 2, 2008 02:21:00 pm
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    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.

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