Forerunners have to go through a long waiting period, and the 3D printing market has not yet erupted.
HP wants to achieve business transformation is still difficult.
Yesterday, Hewlett-Packard announced its third-quarter earnings this year, and also announced that current CEO Dion Weisler will leave in November this year, taking over HP’s imaging, printing and solutions business. President Enrique Lores.
The earnings and CEO’s departure news came out, and HP’s share price fell more than 6%.
First look at the earnings report, the report shows that HP’s third-quarter net revenue was $14.6 billion, which was flat year-on-year, slightly lower than the expected $14.61 billion; net profit was $1.2 billion, up 34% year-on-year. The company’s earnings per share were 58 cents, higher than the estimated 55 cents.
From the perspective of various business units, the two main businesses of personal computers and printing have increased and decreased. Sales in the personal systems segment, including PCs and tablets, increased by 3%, and print business sales fell by 5%, showing weak performance.
According to research and analysis company Gartner report, the global Q2 quarter personal computer market, HP market share reached 22.2%, the giant position does not fall, second only to Lenovo (25%).
The current CEO, Dion Whistler, is responsible for the computer and printer business and is a strong believer in 3D printing technology. In 2016, HP released its first 3D printer and officially entered the field. In 2017, it acquired the Samsung printer business for $1.05 billion in order to expand the HP print business product line. Wissler’s goal is to subvert the $12 trillion manufacturing industry with 3D printing technology in five to ten years.
People who are familiar with HP still remember that in 2015 HP split into HP Enterprise and HP Inc., the former enterprise hardware and services business, which is mainly engaged in PC and printer business.
In the same year, Dion Weissler served as President and CEO of Hewlett-Packard Co., Ltd. At that time, Hewlett-Packard Company’s share price was less than $12, and yesterday’s closing price was about $19, an increase of nearly 60% in four years.
Dion Wissler left the company in November 2019 due to family health issues, but will remain in HP to help Enrique Lorey transition to the transition until January 2020. Enrique Lorry is an old employee and has worked at HP for nearly 30 years.
He was committed to leading the company’s transformation during his tenure, especially the printer business. Whether his departure will affect HP’s insistence on 3D printing is also the focus. The weakness of HP’s printing business has long been revealed, with print business revenues of $5.056 billion in the first quarter of this year, slightly lower than the same period last year.
Dion Weissler chooses to bet 3D printing, the global 3D printing market in 2017 is 7.3 billion US dollars, IDC forecast 2In 020, the global output value will reach 28.9 billion US dollars. However, as Weisler predicts, the true popularity of 3D printing will still take 5 to 10 years, which also indicates the difficulty of HP’s business transformation.
The first mover always has to go through a long waiting period. Although HP’s investment in 3D printing has not yet ushered in the market, it has already entered the market, and if it is abandoned, it will not be worth the loss.