Toner News Mobile › Forums › Latest Industry News › *NEWS*HP:$104,000,000,000.00 IN SALES
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AnonymousInactiveHP 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. -
AuthorJanuary 2, 2008 at 2:21 PM
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