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Report: HP May Be Merging Printer, PC Divisions

By - Source: AllThingsD | B 16 comments

Sources claim that HP will announce its plans to merge its Imaging and Printing Group with its Personal Systems Group.

AllThingsD reports that HP will soon announce plans to move its Imaging and Printing Group under its PC-making Personal Systems Group. The combined business unit will report to Executive Vice President Todd Bradley while Vyomesh "VJ" Joshi, once the executive vice president in charge of IPG, will leave the company entirely.

The move actually makes sense. IPG sells printers to both the consumer and business sectors as does the PSG. Combining the two, HP will have a more streamlined, cost-cutting operation. The two businesses should even be more integrated so that HP can offer a more unified product to businesses and customers alike.

Sources reportedly agree, pointing to CEO Meg Whitman's discussion during HP’s last earnings conference call on Feb. 22 where she talked about ways to streamline HP's operations. "One thing I’m working on is bringing the entire product portfolio to customers as one HP. Our biggest customers want to buy from one HP, and not from different segments," she said.

At one time HP's IPG was the bread and butter, selling more printers than any other company in the world. The big revenue stemmed from the ink cartridges, USB cables and other supplies than the printers themselves. But the printer sector on a whole as seen a decline, and HP reported a 7 percent drop in sales during its most recent quarter.

"The sell-through of ink is at low levels, and it’s not just our ink, but industry-wide," Whitman said. "We do see pockets in decline. Consumers are printing fewer photos. We’re steady as she goes. Going to think hard about accelerating new business to compensate for the loss in ink sales. Also, the headwinds from the Japanese yen will remain. It’s a terrific business, but we’ve got some work to do."

With that in mind, having IPG serve as a standalone division would presently be more costly for HP than it has been in the past. That said, having Bradley controlling both the IPG and PSG as a single unit would undoubtedly reduce costs and free up funds for other areas. In 2011, IPG and PSG accounted for $65 billion in sales, or more than 51-percent of HP’s overall sales. Combined profits were $6.3 billion, and that number will likely increase if the two groups do in fact merge as reported.

HP has not released an official announcement as of this report, so stay tuned.

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  • 2 Hide
    LuckyDucky7 , March 21, 2012 2:52 AM
    Hmm... what could HP be planning?

    Could it be... the PCJet? A 100-dollar machine built on tech from 2008 where it plain refuses to produce clear output on screen 1 in 20 times used and needs necessary 50-dollar parts for every 100 documents you create with it?
  • 0 Hide
    richboyliang , March 21, 2012 2:57 AM
    Time to move back to Canon if you aren't already there
  • 0 Hide
    memadmax , March 21, 2012 6:07 AM
    "The big revenue stemmed from the ink cartridges"

    This was why I stayed away from the "big name" printer companies in favor of the cheap ones long ago.
    Buy a cheap o $20 dollar Lexmark, use it once.... let it sit for an eternity, ink dries up, toss, rinse and repeat.... lol

    j/k
  • Display all 16 comments.
  • 0 Hide
    belardo , March 21, 2012 11:07 AM
    HP printers... blow.

    Also, with todays digital cameras, its way easy to take thousands of photos - that don't need to be printed. Just view them on your iPad or phone or whatever.
  • 0 Hide
    sporkimus , March 21, 2012 11:50 AM
    I hardly use my printer anymore because the ink cartridges are so friggin' expensive.
  • 1 Hide
    lamorpa , March 21, 2012 12:46 PM
    HCPC? (Who Could Possibly Care)

    What possible difference could it make to consumers whether the corporate structure of HP changes? This is not news, it's an internal HP memo.
  • 0 Hide
    house70 , March 21, 2012 2:54 PM
    Shut up, Meg.
  • 0 Hide
    keyanf , March 21, 2012 3:19 PM
    After having to deal with print drivers, HP's PC division is screwed...
  • 0 Hide
    livebriand , March 22, 2012 2:00 AM
    richboyliangTime to move back to Canon if you aren't already there

    I had a Canon D680 and, in december 2009, it had no 64-bit drivers. In fact, it STILL doesn't have those, even now. At least HP printers use standard PCL drivers and you can get 64-bit Win7 drivers for very old models.
  • 0 Hide
    livebriand , March 22, 2012 2:00 AM
    richboyliangTime to move back to Canon if you aren't already there

    I had a Canon D680 and, in december 2009, it had no 64-bit drivers. In fact, it STILL doesn't have those, even now. At least HP printers use standard PCL drivers and you can get 64-bit Win7 drivers for very old models.
  • 0 Hide
    livebriand , March 22, 2012 2:00 AM
    richboyliangTime to move back to Canon if you aren't already there

    I had a Canon D680 and, in december 2009, it had no 64-bit drivers. In fact, it STILL doesn't have those, even now. At least HP printers use standard PCL drivers and you can get 64-bit Win7 drivers for very old models.

    Edit: What is up with the comments section? I post this 3 times, even while disabling Ghostery, and none of my replies appear from the article discussions yet they do in the forums... this isn't the first time I've seen this happen, and from another browser my comments also don't show up.

    Edit again: oh wait, 5 times... wtf...
  • 0 Hide
    livebriand , March 22, 2012 2:00 AM
    richboyliangTime to move back to Canon if you aren't already there

    I had a Canon D680 and, in december 2009, it had no 64-bit drivers. In fact, it STILL doesn't have those, even now. At least HP printers use standard PCL drivers and you can get 64-bit Win7 drivers for very old models.
  • 0 Hide
    livebriand , March 22, 2012 2:01 AM
    richboyliangTime to move back to Canon if you aren't already there

    I had a Canon D680 and, in december 2009, it had no 64-bit drivers. In fact, it STILL doesn't have those, even now. At least HP printers use standard PCL drivers and you can get 64-bit Win7 drivers for very old models.
  • 0 Hide
    livebriand , March 22, 2012 2:03 AM
    memadmax"The big revenue stemmed from the ink cartridges"This was why I stayed away from the "big name" printer companies in favor of the cheap ones long ago.Buy a cheap o $20 dollar Lexmark, use it once.... let it sit for an eternity, ink dries up, toss, rinse and repeat.... lolj/k

    Or just get a laser printer, waste less, and have a low per page cost and better text quality...
  • 0 Hide
    livebriand , March 22, 2012 2:03 AM
    Honestly, the only reason I ever use my printer is for school. That's IT.
  • 0 Hide
    LukeCWM , March 22, 2012 7:37 PM
    I just bought a phenomenal HP printer for $500. It works like a dream, even better at some tasks than our $15,000 Konica. However, I just bought a full load of toner for $480. It shouldn't cost that much for a $500 printer...