HP has launched a new initiative to try to recapture declining revenue in the printer space.
The company will now offer a subscription-based paper delivery service to its Instant Ink subscribers as it looks for new revenue streams.
“Now we are testing the paper delivery service to these customers, which is another key value proposition because if you print from home, you have to go buy paper. [is] heavy, very painful, and we're going to deliver it,” HP CEO Enrique Lores said at Cowan's 50th Annual Technology, Media and Telecommunications Conference.
What is behind the move?
The latest move is intended to replace some of the lost revenue that the printing giant, which has traditionally made high revenues from ink sales, has lost in today's hybrid working climate.
"The amount of office printing will be around 80% of what we expected before the pandemic started," Lores added.
HP has moved to a more subscription-based model for years.
The hardware giant raised prices for compatible printers with third-party ink and supplies in 2020, opting instead to push HP+, a cloud-based printing service that can include automatic supplies deliveries for users.
At the end of 2021, HP decided to end its popular "free ink for life" plan, which allowed its customers to print up to 15 pages per month, and also increased the price of the Instant Ink subscription service (potentially up to 50% ). in some cases) in March 2022.
It's unclear if HP's efforts to reinvent itself are paying off, as the company "lost money on nearly 25%" of its customers, The Register reports on the conference.
Like many other companies, the company has been affected by global issues affecting supply chains.
HP's inkjet and laser printers are popular around the world, and the company reportedly sacrificed around $XNUMX billion in sales by withdrawing from the Russian and Belarusian markets.
The future of the desktop printer world may not be certain, but that didn't stop legendary investor Warren Buffet from recently revealing a substantial stake in the company, buying around 121 million shares, or 11%, of the computer giant.
Via The Register (Opens in a new tab)