Copyright 2023, Faulkner Information Services. All
Publication Date: 2302
Report Type: VENDOR
HP Inc. produces PCs, printers and imaging equipment, accessories, and
business solutions to consumers, small- and medium-sized businesses, and
large enterprises, including those in the government, health, and
education sectors. The company is the result of the 2015 split of
Hewlett-Packard (HP) into two separate companies – Hewlett Packard
Enterprise and HP Inc. Led by President and CEO Enrique Lores, the firm
has 51,000 employees with operations in 185 countries. HP Inc.’s growth
strategy is built on modernizing its core product lines, expanding into
new markets adjacent to its traditional focus areas, and creating new
businesses. This profile takes a more detailed look at HP Inc.’s
operations and recent activity.
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Name: HP Inc.
1501 Page Mill Road
Palo Alto, CA 94304
Phone: (650) 857-1501
Type of Vendor: Personal Systems, Printing, Displays, and
Service Areas: Global
Stock Symbol: HPQ (NYSE)
|Hewlett Packard Enterprise Company Profile|
Figure 1. HP Inc.
Source: HP Inc.
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HP Inc. was created out of the November 2015 split of the former
Hewlett-Packard (HP). This division – which also resulted in the creation
of Hewlett Packard Enterprise – saw the establishment of an independent
company that focuses nearly exclusively on Personal Systems and Printing.
Figure 1 shows the company’s net revenue by business segment, company
unit, and key operating areas for the 2022 fiscal year.1
Figure 2. FY 2022 Revenue
Source: HP Inc.
HP Inc. has 51,000 employees as of its 2021 annual report2.
History & Milestone Events
Hewlett-Packard (HP), as it was formerly known, was co-founded by William
Hewlett and David Packard in 1939. HP began in a garage in Palo Alto,
California, with $538. Hewlett considered himself the idea man, while
Packard assumed management responsibilities. The duo’s initial offering
was an electronic test instrument known as an audio oscillator. From these
modest beginnings sprang one of the largest computing companies in the
world. Anecdotally, the company’s name was decided by a coin toss. Packard
In November 2015, HP was officially split into two companies and HP Inc.,
as it is currently known, was formed. This organization would go on to
focus on Printing and Personal Systems in addition to pursuing “adjacent
markets” such as copiers, graphics printing, and commercial mobility.
Significant highlights from HP / HP Inc.’s past include:
- 1937 – Is founded as Hewlett-Packard.
- 1957 – Goes public, later expanding its reach beyond
the US and into Switzerland and Germany, where HP established marketing
and manufacturing plants.
- 1961 – Enters the medical arena with its acquisition
- 1971 – Develops the handheld scientific calculator,
and from it, desktop PCs, the first desktop mainframe, and the LaserJet
- 1989 – Acquires Apollo Computers, and with it,
technology that would lend itself to the development of workstation
- 1992 – Buys Texas Instruments’ UNIX-based computer
- 1997 – Purchases VeriFone.
- 1999 – Names Carleton “Carly” S. Fiorina as president
and CEO … Spins off 15 percent of its test and measurement equipment,
medical electronics businesses, and other non-computer operations under
the name Agilent Technologies.
- 2000 – Disperses the remaining 85 percent of Agilent
Technologies to its shareholders.
- 2002 – Acquires Compaq.
- 2004 – Forms the Technology Solutions Group.
- 2005 – Names Mark Hurd as president and CEO,
replacing Carly Fiorina … Announces plans to cut 10% of its workforce.
- 2006 – Sees former chair Patricia Dunn and several
other executives brought before the California Attorney General on
charges of illegal solicitation methods in an internal boardroom
- 2007 – Exchanges patent infringement suits with PC
competitor Acer in the US.
- 2008 – Acquires EDS, and integrates the company as
part of its reformed Technology Solutions Group.
- 2009 – Is one of seven technology companies to
announce a collaboration to facilitate the timely creation and operation
of a white spaces database to govern use of the vacant television
broadband spectrum, commonly known as
TV white spaces.
- 2010 – Acquires Palm, 3Com, and 3PAR … Dismisses
CEO Mark Hurd over the alleged misuse of corporate funds … Hires Leo
Apotheker as new CEO.
- 2011 – Announces that it would acquire Autonomy for
$10.3 billion … Removes CEO Apotheker and names Meg Whitman as his
replacement … Reveals that the WebOS mobile operating platform will be
shared with the open-source community.
- 2012 – Announces a major restructuring plan to
combine its PC and printing divisions into one unit.
- 2014 – Announces a number of changes to its board of
directors, including the naming of president and CEO Whitman as chair.
Whitman replaces the departing Ralph Whitworth.
- 2015 – Officially splits into two publicly traded
companies: HP Inc., under the direction of CEO Dion Weisler, and
Hewlett-Packard Enterprise, under CEO Whitman … Enters into a $100
million settlement agreement related to securities claims associated
with Autonomy, which it acquired in 2011.
- 2016 – HP Inc. reaches an agreement to acquire
Samsung’s printer business for $1.05 billion.
- 2017 – Closes its acquisition of Samsung’s printing
division … Appoints Chip Bergh as Independent Chair, replacing former
Chair – and former HP CEO – Meg Whitman … Reaches an agreement with
Deloitte Consulting to collaborate on implementing HP Inc. 3D printing
systems in “large-scale manufacturing environments” … Forges a
partnership with VMware to add its Workspace ONE to HP Inc.’s DaaS
(Device-as-a-Service) technology platform.
- 2018 – Closes its acquisition of Apogee … Adds new
Print consulting Services to its portfolio … Names Vikrant Batra as
CMO, CCO Karen Kahn to its executive leadership team, Alex Cho as
President, Personal Systems, Steve Fieler as CFO … Joins the
Cybersecurity Tech Accord … Forges separate strategic collaboration
agreements with Aon and Dassault … Introduces new Device-as-a-Service
offerings … Names Kim Rivera as President, Strategy and Business
- 2019 – Discloses its Fiscal 2020 Restructuring Plan,
which would include workforce reductions of 7,000-9,000 … Approves
Enrique Lores, the President for Imaging, Printing, and Solutions, as
new company President and CEO … Rejects an initial proposal for a
potential business combination with Xerox.
- 2020 – Unveils Omnicept, a platform that combines an
intelligent VR headset and developer-focused SDK … Appointed Marie
Myers as CFO … Intros Managed Print Cloud Services … Adds the Sure
Check cybersecurity risk assessment program and Advanced Security
Solutions … Rejects Xerox’s latest exchange offer.
- 2021 – Acquires the HyperX gaming division of
Kingston Technology Company for $425 million … Tolga Kurtoglu, former
CEO of Palo Alto Research Center (PARC) joins HP Inc. as chief
technology officer, leading HP Labs … Completes purchase of Teradici
Corporation, a developer of remote computing software to enhance its own
remote services tailored for hybrid work … Commits to gender parity in
the workforce by announcing its intention to achieve 50/50 gender equity
in its leadership positions by 2030, and have at least 30 percent of its
technical and engineering positions filled by women in the same
- 2022 – Purchases workplace collaboration systems
developer Poly for $3.3 billion … Acquires Choose Packaging, creator
of the world’s first zero-plastic paper bottle; the company’s goal is to
disrupt the single-use plastics industry with fiber-based, 100 percent
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HP Inc. provides products, technology, software, and services to
individual customers, SMBs and large businesses, government agencies, and
the healthcare and education sectors. The company’s strategy is focused on
leveraging its existing portfolio of products and services to help better
“meet the demands of a continually changing technological landscape,” as
well as to offset areas experiencing decline. HP Inc. also focuses on a
broad distribution strategy that includes retail, commercial channels, and
direct sales, as well as its own ability to cross-sell offerings. To
execute this strategy, the company:
- Emphasizes certain aspects of its core business.
- Identifies and capitalizes on natural areas of growth.
- Innovates and develops new products and services to allow it to expand
beyond its existing technology.
- Invests in HP Labs and certain other business incubation projects.
In November 2022, HP Inc. announced its fiscal year 2023 Future Ready
Transformation plan, driving significant structural cost savings through
digital transformation, portfolio optimization, and operational
efficiency. The company estimates that these actions will result in
annualized gross savings of at least $1.4 billion by the end of fiscal
2025, and it will incur approximately $1.0 billion in labor and non-labor
costs related to restructuring and other charges, with approximately $0.6
billion in fiscal 2023, and the rest split approximately equally between
fiscal 2024 and 2025. As part of the plan, gross global headcount is
expected to be reduced by approximately 4,000 to 6,000 employees. These
actions are expected to be completed by the end of fiscal 2025.
Competitive advantages include:
- Broad product portfolio, innovation, R&D capabilities, brand, and
- Ability to cross-sell products and services, offer extensive support
services, and make products more accessible.
- Unique distribution strategy, from retail and commercial channels to
- General market leadership for PCs and access devices, imaging and
printing products, and related technology and services.
- Expansive customer base that includes individual consumers, SMBs,
large enterprises, and the government, healthcare, and education
- Consistent, balanced performance across all segments and regions.
- Innovation via core, advanced growth initiatives and investments.
HP Inc. tends to remain vulnerable to competitive pressures, dependence
on third-party suppliers, and a potential inability to manage the risks
associated with its businesses. Other risk factors include
unforeseen such as:
- Changes in competitive conditions
- Delays in obtaining tax opinions or rulings
- Financial market uncertainty
- Difficulty integrating acquired companies, products, or services into
the overall business
In the face of what it calls “unprecedented uncertainty,” HP believes
that it will continue to succeed based on what President and CEO, Enrique
Lores called “the agility of [its] teams and the strength of [its]
portfolio.” Lores continued: “Disciplined execution [is] powering our
performance and we’re well positioned to drive continued value creation.”
The company highlighted key growth areas from the 2022 fiscal year:
- Workforce solutions
- Consumer services
- Industrial graphics
- 3D and personalization
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HP Inc. focuses on consumer systems and printing. Table 1 provides an
overview of the HP Inc. product and service portfolio.
|Personal Systems|| Commercial and consumer desktop PCs,
laptops, workstations, thin client PCs, tablets, retail POS
(point-of-sale) systems, calculators, and other related
accessories, software, support, and services.
|Printing|| Consumer and commercial printer
hardware, supplies, media, software, and services, as well as
scanning devices and commercial imaging products and services.
HP Inc.’s top PC competitors include Lenovo, Dell Technologies, Acer
International, ASUS, Apple, Toshiba, and Samsung, among other companies.
In the printing arena, it also competes with Canon USA, Lexmark, Xerox,
Seiko Epson, Ricoh USA, and Brother.
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Mergers, Acquisitions, and Divestitures
HP Inc. announced the completion of its
acquisition of Poly, a leading global provider of workplace collaboration
solutions. The deal is expected to accelerate HP’s strategy to create a
more growth-oriented portfolio, further strengthen its industry
opportunity in hybrid work solutions, and position the combined
organization for long-term sustainable growth and value creation. Poly
brings industry-leading video conferencing solutions, cameras, headsets,
voice and software to HP, allowing customers to create meeting equity
between those in the room and those who aren’t. With the transaction
completed, Poly CEO Dave Shull will join HP as President, Workforce
Services & Solutions, starting November 1. HP completed the deal as an
all-cash transaction of $40 per share, implying a total enterprise value
of approximately $3.3 billion, inclusive of Poly’s net debt.
HP Inc. has acquired Choose Packaging, a
packaging development company and inventor of the only commercially
available zero-plastic paper bottle in the world. Choose’s patented
technology provides an alternative to plastic bottles and can hold a wide
variety of liquid products. Its paper-based bottles are made with
naturally occurring and non-toxic materials and pave the way for a new
standard for bottling solutions globally. With the integration of Choose
into its Personalization & 3D Printing business, HP will focus on
scaling its technology and customer footprint to expand the addressable
market. There are more than 150 million tons of single-use plastics
produced each year, and HP intends to disrupt this market with
fiber-based, 100% plastic-free packaging.
Alliances and Joint Ventures
HP Inc. and Legor Group SPA have entered
into a strategic collaboration for the development of innovative precious
metal materials for HP’s Metal Jet system. Legor, a leader in metals
science and the production of alloys, powders, and plating solutions, is
the first to produce specialty precious metal materials for the jewelry
and fashion accessories markets designed to work with HP’s revolutionary
3D metal binder jet platform. The collaboration will initially focus on
enabling the production of functional stainless steel accessories. In
parallel, the companies will implement a rigorous research and
developmenet program bronze, silver, and eventually gold powders, with
research will take place in the new Legor 3DMetalHub in Bressanvido,
Personnel and Organizational
HP Inc. announced its fiscal year 2023
Future Ready Transformation plan, driving significant structural cost
savings through digital transformation, portfolio optimization, and
operational efficiency. The company estimates that these actions will
result in annualized gross savings of at least $1.4 billion by the end of
fiscal 2025. The company estimates that it will incur approximately $1.0
billion in labor and non-labor costs related to restructuring and other
charges, with approximately $0.6 billion in fiscal 2023, and the rest
split approximately equally between fiscal 2024 and 2025. The company
expects to reduce gross global headcount by approximately 4,000-6,000
employees. These actions are expected to be completed by the end of fiscal
HP Inc. has appointed industry leader
Ernest Nicolas as Chief Supply Chain Officer, leading the company’s
worldwide supply chain organization. HP’s supply chain delivers more than
100 million products to customers each year through a sophisticated
network of ODM factories, manufacturing partners, commodity suppliers,
logistics providers, and a wide variety of other partners. Nicolas will
also oversee social and environmental sustainability efforts tied directly
to HP’s global reputation and business growth. Nicolas joins HP from
Rockwell Automation, where he served as Chief Supply Chain Officer. In
this global leadership role, he had overall responsibility of the
end-to-end supply chain including Supply Chain Planning, Strategy and
Transformation, Strategic Sourcing, Manufacturing Operations, Logistics
and Customer Care as well as Enterprise Quality teams.
Slumping sales in consumer PC, notebook, and printer sales contributed to
an 11.2 percent revenue decline for HP Inc.
in the fiscal 2022 fourth quarter as compared to one year earlier. For the
full year, net revenue was $63.0 billion, down 0.8 percent from the
prior-year period. In the fourth quarter, net revenue reached only $14.8
billion. Personal Systems net revenue was $10.3 billion, down 13 percent
year over year, while Consumer net revenue decreased 25 percent and
Commercial net revenue decreased 6 percent. Total units shipped were down
21 percent overall with Notebook units down 26 percent and Desktop units
down 3 percent. Printing net revenue was $4.5 billion, down 7 percent year
over year. Total hardware units in this sector were down 3 percent with
Consumer units down 4 percent and Commercial units up 5 percent. Consumer
net revenue was down 7 percent and Commercial net revenue was up 1
percent. Supplies net revenue was down 10 percent.
HP Inc. and its subsidiaries released
their fiscal 2022 third quarter numbers showing net revenue of $14.7
billion, down 4.1 percent from the prior-year period. Personal Systems net
revenue was $10.1 billion, down 3 percent year over year with a 6.9
percent operating margin. Consumer net revenue decreased 20 percent and
Commercial net revenue increased 7 percent. Total units were down 25
percent with Notebook units down 32 percent and Desktop units up 1
percent. Printing net revenue was $4.6 billion, down 6 percent year over
year with a 19.9 percent operating margin. Consumer net revenue was up 1
percent and Commercial net revenue was down 3 percent. Supplies net
revenue was down 9 percent. Total hardware units were down 3 percent with
Consumer units down 1 percent and Commercial units down 15 percent.
HP Inc.’s fiscal 2022 second quarter net
revenue was reported at $16.5 billion, up 3.9 percent from the prior-year
period. “Collectively, our key growth businesses grew double digits and
drove $5.6 billion in revenue in the first half of the year,” said Enrique
Lores, HP President and CEO. “Our consistent performance in the face of a
volatile macro environment gives us confidence in our plans to build a
stronger HP.” Personal Systems net revenue was $11.5 billion, up 9 percent
year over year with a 6.9 percent operating margin. Consumer net revenue
decreased 6 percent and Commercial net revenue increased 18 percent. Total
units were down 17 percent with Notebook units down 23 percent and Desktop
units up 11 percent. Printing net revenue was $5.0 billion, down 7 percent
year over year with a 19.3 percent operating margin. Consumer net revenue
was down 12 percent and Commercial net revenue was down 4 percent.
Supplies net revenue was down 6 percent. Total hardware units were down 23
percent with Consumer units down 24 percent and Commercial units down 17
HP Inc.’s first quarter net revenue for
2022 reached $17.0 billion, up 8.8 percent from the prior-year period.
President and CEO Enrique Lores, cited the firm’s double digit growth in
gaming, peripherals, workforce solutions, consumer subscriptions, and
industrial graphics and 3D. Personal Systems net revenue was $12.2
billion, up 15 percent year over year with a 7.8 percent operating margin.
Consumer net revenue decreased 1 percent and Commercial net revenue
increased 26 percent. Total units were down 6 percent with Notebook units
down 9 percent and Desktop units up 3 percent. Printing net revenue was
$4.8 billion, down 4 percent year over year with a 18.2 percent operating
margin. Consumer net revenue was down 23 percent and Commercial net
revenue was up 9 percent. Supplies net revenue was down 2 percent (down 3
percent in constant currency). Total hardware units were down 28 percent
overall, with Consumer units down 31 percent and Commercial units down 3
1 “HP Inc. Earnings Announcement.” HP Inc. November 22, 2022.
2 “2021 Annual Report and 2022 Proxy Statement.” HP Inc.
Retrieved February 9, 2023.
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