HP CEO Enrique Lores highlighted the significant challenges facing the company's printing division as customers opt to print fewer pages, noting a substantial 20% drop in the number of pages printed compared to before. of the pandemic.
Speaking at the 40th Annual Bernstein Strategic Decisions Conference (via Register), Lores attributed this to the rise of hybrid work models, with fewer people in offices reducing demand for printed materials and more workers prepared to access digital versions of documents while traveling.
The change in printing habits is also reflected at home and in the office, where consumers ink paper much less than before.
Is HP concerned about the future of printing?
Despite the challenges, HP reports having been proactive in adapting its business model, although customers have not necessarily been very happy about this. HP has been maximizing supplies revenue by driving more customer subscriptions, as well as selling printers prefilled with ink.
The firm previously alluded that Instant Ink subscribers were more lucrative than those who purchase ink as needed.
To fix this, a firmware update supposedly designed to improve security began preventing printers from using third-party ink, considered unsafe for printers, which in turn forced the customer to purchase their supplies directly from HP (and often, for more money than non-HP ones). homologs).
In addition to evolving printing trends, Lores also recognized that customers are now keeping their printers for longer periods of time, further impacting hardware sales. He added: “We're trying to quantify exactly how much this is.”
Looking ahead, the company continues to grow its subscription revenue. TI now has around 13 million ink and toner subscribers and has also launched a more comprehensive service that includes ink, toner, paper and the printer itself.
HP posted revenue of $12.8 billion in its latest financial quarter, down 0.8% from the same period last year.
