HP’s CEO reveals that customers are printing much less – and that’s a big concern
HP CEO Enrique Lores has highlighted the significant challenges facing the company’s printing division as customers choose to print fewer pages, noting a significant 20% drop in the number of pages printed compared to before the pandemic.
Speaking at Bernstein’s 40th Annual Strategic Decision Conference (via The register), Lores attributes this to the rise of hybrid work models, where fewer people in offices reduce the demand for printed materials and more employees are willing to access digital versions of documents on the go.
The shift in printing habits is reflected both at home and in the office, with consumers inking much less paper than before.
Is HP concerned about the future of printing?
Despite the challenges, HP reports that it has been proactive in adapting its business model, but customers are not necessarily happy about it. HP has maximized supplies revenue by pushing for more customer subscriptions and selling printers preloaded with ink.
The company previously hinted that Instant Ink subscribers were more lucrative than those who buy ink as needed.
To address this, a firmware update supposedly designed to improve security began preventing printers from using third-party ink, which was considered unsafe for the printers, forcing customers to purchase their supplies directly from HP (and often for more money than non-HP counterparts).
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 are trying to quantify exactly how much this is.”
Looking ahead, the company continues to grow its subscription revenue. IT 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 most recent financial quarter, down 0.8% from the same period last year.