HP purchases Samsung’s printer business for a cool $1.05 billion

On Monday, HP Inc. made two major announcements for its commercial printing business. HP Inc., which comprises the former personal systems and printing businesses of Hewlett Packard, revealed that it would not only acquire Samsung's printer business for $1.05 billion, but also that it is releasing a new line of A3 (yes, the paper size) multi-function printers (or MFPs) that are meant to go head-to-head with purportedly less-versatile and more complicated A3 copiers from other manufacturers.

Through the $1.05 billion deal with Samsung, HP will take on Samsung's portfolio of printers, its 6,500 printing patents, and a workforce of 1,300 researchers and engineers. With these assets, HP hopes to "disrupt and reinvent the $55 billion copier industry." HP thinks that customers have grown frustrated with the costs of operating and maintaining the current copiers on the market. The company believes that Samsung's multi-function printers are superior to existing copier technology. HP expects that Samsung's MFP know-how, combined with its own printing expertise, will help it offer simpler, more reliable devices with fewer, more easily replaceable parts.

HP expects this transaction with Samsung to take most of a year to close, but the company isn't waiting to deliver new products. Hours after announcing the acquisition of Samsung's printer business, HP announced a new A3 multi-function printing lineup that includes 16 new multifunction printers. HP claims that these devices offer heightened security, efficiency, and more affordable color prints and copies than other offerings in the market.

These moves follow some disappointing second-quarter financial results for the newly-split-out HP. The company reported to investors earlier this year that the revenue of its printing business was down 16% year over year, in part due to 18% lower consumer printing hardware sales and 16% lower supplies revenue. Even if consumers are printing less, paper copies appear to remain important in many industries. If Samsung's printing business can help HP deliver on its promises of more efficient and reliable copiers, perhaps that billion-dollar acquisition will be worth it.

Comments closed
    • ludi
    • 3 years ago

    “HP thinks that customers have grown frustrated with the costs of operating and maintaining the current copiers on the market.”

    Funny, our office transitioned away from HP office/workgroup printers because they had exactly that problem. And the downside of the networked copier market isn’t the hardware, it’s the buggy and ill-conceived print drivers that are provided with them.

    • designerfx
    • 3 years ago

    “reinventing the market” via consolidation? Hilarious. HP just bought and shut out one of their few competitors in a market which is already captive/stagnant.

    • pranav0091
    • 3 years ago

    Ah printers. One of those things that make you still make you think you live in the late 90s.

    It doesnt matter if its a cheap 2500 rupee (~40$) inkjet or an expensive network-connected multifunction device larger than a washing machine – they all suck.

    Printers are where we need some tech-revolution, its bloody 2016 already – I should be able to cancel a stuck print job without having to reboot the whole printer. And the page-scaling woes where you dont quite get what the preview says you’d get.

      • jensend
      • 3 years ago

      Anyone who’s worried about the supposedly impending robot takeover should consider how that’s going for the robot they have experience with- the one sitting on their desk or printer stand.

      KILL ALL HUMANS
      KILL ALL HUMANS
      *Ink cartridge error. Please replace the magenta cartridge before proceeding*
      *Paper jam*

      I mean, I guess million dollar deathbots may someday be more reliable than a $200 robot whose primary function is to funnel money from your wallet into the company’s coffers via overpriced ink refills, but still.

        • UberGerbil
        • 3 years ago

        When Skynet decides humans are no longer necessary and have become a liability, it won’t use robots to kill them off. Humans are already highly optimized to kill each other. They just need to be given a reason. Which is easy enough to do merely by subtly altering the information they’re already consuming. Simply identify the issues that are most likely to make each self-identified group of humans violent against another group, and feed each “information” that reinforces that tendency. If you spend any time on Facebook, you’ll see that process has already begun.

    • adisor19
    • 3 years ago

    So who is Dell gonna use now for their entry level small lazer printers ?

      • Shinare
      • 3 years ago

      Lexmark

        • adisor19
        • 3 years ago

        Ugh.. they’re both awful. I’d rather stick with HP. At least I know I’m getting driver updates for OS X that actually work.

        Adi

          • juzz86
          • 3 years ago

          If ever there was a modernised definition of Highway Robbery, it would be Lexmark ink cartridges.

    • blastdoor
    • 3 years ago

    [url<]http://www.theonion.com/article/new-apple-ceo-tim-cook-im-thinking-printers-21207[/url<]

      • chuckula
      • 3 years ago

      If you studied your Apple history you would know that there was a time when Apple’s most powerful computing system was the LaserWriter printer… not the Macintosh that was hooked up to it.

      [url<]https://en.wikipedia.org/wiki/LaserWriter#Hardware[/url<]

        • blastdoor
        • 3 years ago

        Interesting!

        I knew about the LaserWriter, but I did not know about its relative computing power.

    • drfish
    • 3 years ago

    When was the last time anyone here had to actually print something?

      • srg86
      • 3 years ago

      I often print out PDF manuals etc especially for something in-depth. I prefer reading something on paper than on a screen.

        • UberGerbil
        • 3 years ago

        Yeah, I tried using the shop service manual for my car as a PDF on a tablet but I find it’s much better to print off the specific pages I need and drag them under / into the car with me. On the one hand, it means I often need a flashlight to read them but in that case I need the light (usually a headlamp, actually) to do the work anyway, and on the other hand I don’t have to deal with pinch-zooming and dragging diagrams around with oily fingers.

      • blastdoor
      • 3 years ago

      I mostly agree. But I will say this — I was at a meeting and opened up a folder of high quality paper documents (high quality paper, high quality printing) and it was a startling contrast to looking at things on a screen, even high DPI screens. Really good printing on really good paper looks very good.

      But still — it ain’t the future. Eventually screens will match paper, and the extra benefits of the screens are considerable.

      • Sargent Duck
      • 3 years ago

      Yesterday.

      Had to print out a legal document, sign it then I scanned it and emailed it back

      • atari030
      • 3 years ago

      At least given current technology, I think reading actual printed words carries an inherent advantage in perception and retention. As an aside, I also think taking one’s own notes and writing them down via pen/pencil and paper (as opposed to simply typing notes or (even worse) being given notes) is inherently superior for perception and retention. Assuming the person’s handwriting isn’t chicken-scratch, that is 🙂

      • meerkt
      • 3 years ago

      Yesterday.

      Though it doesn’t happen often.

      • Redundant
      • 3 years ago

      Recently when we were asked to FAX!!! a document. WTF?

      • kuttan
      • 3 years ago

      I do not need to print on a regular basis but required on occasional basis.

      • Shinare
      • 3 years ago

      As Pollyanna as your statement is, unfortunately we do not live in a paperless utopia.

      I support more local desktop printers than I do BYOD devices. (unfortunately)

      • TwoEars
      • 3 years ago

      Yesterday. Packing slip. We’re not quite there yet.

      • f0d
      • 3 years ago

      i print out a lot of receipts

      • tsk
      • 3 years ago

      I think a lot of people on TR, cause they never get on with the times like us youngsters.
      People on here probably print their plane tickets 😀

        • Redundant
        • 3 years ago

        Gasp! iGnorant Gerbil with Geriatric Generalizations

      • albundy
      • 3 years ago

      mainly it’s most of us with jobs. also some of us think 3d printing is awesome!

      • Vaughn
      • 3 years ago

      You should check out an office building sometime.

      • ludi
      • 3 years ago

      Every day. I work in an engineering office.

      • moose17145
      • 3 years ago

      All. The. Time. I also copy things all the time. But I am military. You wouldn’t believe the amount of things a single soldier needs to print and copy… honestly even I have a hard time believing it, and I am the one doing the printing and copying!

      That being said… I do not own a printer at home. If I need to print something I just use the Army’s printers. Granted I don’t have much that I need to personally print at home… in fact almost every single thing I need to print anymore is Army related…

    • Neutronbeam
    • 3 years ago

    I hope it’s a good deal for HP, but it ain’t gonna be a license to print money.

      • UberGerbil
      • 3 years ago

      The hardware actually has circuitry in there to prevent that (or rather, to make it possible to trace counterfeit money printed on a color laser or inkjet… as well as [url=http://www.pcworld.com/article/229647/counterfeit_money_on_color_laser_printers.html<]anything else[/url<] it prints).

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