HP It has shown its growth plans for the future in a framework in which hybrid work will dominate, and in which everything to the point that each person will have a computer. But for the company it is also a future in which everyone will have subscriptions to printing services, and in which many will use 3D printing systems to make packaging more sustainable. The company, according to Zdnet, has plans for this situation, and has shown them at its event 2021 Securities Analyst Meeting.
These plans, according to the CEO of HP, Enrique Lores, and his team, go through strengthen its main divisions, PC and Print, focusing and driving growth in trends such as 3D printing, hybrid work and digital services.
HP currently has a leadership position in business and consumer notebooks, and the company’s plans for them include blurring the lines between work and play, and making it easier for IT departments to manage devices. As they see it, the PC will be a key technology hub, and HP’s personal systems divisions will see their target market grow to 560 billion by 2024. Also, keep in mind that, as they say, video conferencing , the retail point of sale, companies and gaming will drive the upgrade of PCs.
As they see it in the company, and we have mentioned, the world is heading for each person to have a PC. In addition, Windows 11 will make many companies and individuals have to update their computers, and peripherals will also be a prominent market, in order to complement the PC.
Regarding the supply chain, Lores has assured that HP is managing the situation well, and that this advantage can also boost its sales. Lores stressed in this regard that the company is «developing more direct supplier relationships, as well as long-term agreements for critical items. It is important so that we can orchestrate everything between providers more effectively. We have increased provider coverage in recent months, and we plan to continue to do so. We have also improved the commonality of key components, and lowered unique components by up to 30%. We will go further and increase the leverage of design between commercial and consumer products to reduce the number of platforms and unique displays«.
In addition, HP is optimizing its internal systems, and consolidating them to stay with a single ERP system. Additionally, they are using, and leveraging, data science and analytics to optimize their supply chain.
The future of printing for HP
When it comes to printing, at HP they are aware that printing habits have changed, but they maintain that printers are still essential in home life, at work and in school. The company is also shifting focus in its printing division, since in a way, its printing division is embracing subscription. So your Instant Ink service user base already exceeds 10 million, and HP project that will achieve $ 500 million in subscription revenue in its fiscal year 2021.
Looking to the future in printing, HP works with certain premises. The first is that the demand for having the home office in the past months has sweated strong, and although they are aware that the office printing market is going to be smaller than that of 2019, they are sure that it can stabilize. They also appreciate that the graphic market has given mixed results, since the graphic world has been impacted by the pandemic, but sees that digital labels and packaging printing are increasing. In addition, they point out that services such as subscriptions to HP + or Instant Ink will be crucial to monetize the printing business.
From HP they also anticipate that Instant Ink will evolve and go beyond ink to also include toner and paper. According to the company, nearly half of its customers want to have their PC, printer, supplies and services consolidated into a single monthly bill.
When it comes to 3D printing, HP has been significantly quieter than other companies and industries. But now they have confirmed that they have a plan for their 3D printing division and are heading to markets such as sustainable packaging. Of course, although the sector’s 3D printing income has not yet recovered its pre-pandemic levels, at HP they aim to revolutionize several sectors. Its industrial thermoplastic printers have been well received, and it is now focused on printing metal to scale by 2022.
Another of its main objectives is to enter the sustainable fiber-based packaging market, and HP expects to use its 3D printing systems to replace more than 150 million tons of single-use plastics that are produced annually with fiber-based packaging. which is biodegradable.
At HP they have already removed half of their single-use plastics from their personal systems packaging, and are working with food, beverage, cosmetic and dairy companies to develop 3D printed packaging. Other areas in which they want to be strong in 3D printing is in personalized health, as well as well-being. Apart from this, HP is also targeting the sports shoe sector and has a custom performance midsole in development.