New HP printers help SMBs look like larger competitors

HALF MOON BAY, Calif. — Hewlett-Packard introduced several new printers designed for small and medium size businesses at an event Tuesday designed to reassure media and analysts that HP’s printer business still has significant room to grow in coming years.

The new printers include the HP Color LaserJet 2600n printer, which at $399 will allow small businesses to save money by printing their own high-quality sales and marketing materials, said Vyomesh Joshi, executive vice president of HP’s Imaging and Personal Systems Group (IPSG.)

HP’s printer group takes in more revenue from small businesses — $10 billion over the last four quarters — than it does from either enterprise customers or consumers, Joshi said during a keynote presentation at The Ritz-Carlton hotel along the Pacific Ocean in Half Moon Bay, California.

These small and medium-size companies are worried about competing for business against companies with greater resources, Joshi said. HP believes its new inkjet and laser printers will allow these companies to generate their own slick marketing material for less than it would cost them to hire a specialized printing design firm, he said.

The 2600n will fit on a desktop and generate eight color pages per minute, Joshi said. Customers interested in other color laser printers can choose from a wide range of new printers, including the $179 HP LaserJet 1020 and the $799 HP Color LaserJet 2800 All-In-One series, which allows customers to print, scan, fax, and copy while connected to a network.

All of the printers will be available around the world, and most are available immediately. The 2600n will be available by the end of the month, an HP spokeswoman said. Further details on the printers are available at HP’s Web site.

IPSG is the crown jewel of HP’s various businesses, accounting for just about all of the Palo Alto, California, company’s profit. The group was also HP’s single-largest source of revenue in the first quarter of 2005.

But HP is critically examining its printer business to make sure it can continue to grow into the future, Joshi said. This involved recently laying off 1,905 workers within IPSG who worked on products or services that did not have as much growth potential, he said.

Right now, segments such as color office printers, multifunction printers such as the Color LaserJet 2800 series, and digital photography printers are the strongest growth areas, Joshi said. HP’s core printer businesses, such as monochrome laser printers and single-function inkjet printers, have stagnated in developed markets such as the U.S. and Europe but are picking up in emerging markets such as China, Russia, India, and Brazil, he said.

“We think printing and imaging is very healthy. The important part is to continue to innovate,” Joshi said.