It’s been widely reported by several sources that HP Inc has agreed to by Samsung’s printer business for over $1 billion.
What might this mean in the marketplace, let us explain…
Samsung are one of the top 5 players in the global printer marketplace and has 6,000 employees globally.
The immediate impact on the market place is likely be minimal, as it will probably take up to 12 months for the deal to be finalised and possibly years for HP to work out the transition and carry out the required consolidation.
Longer term, the obvious benefits to HP Inc is eliminating one of its printer rivals, consolidating and increasing their No 1 position and boosting their revenues. But probably and more importantly, it will give HP a much greater presence in ASIA.
It was also reported by Fortune, that Samsung’s laser printing technology will be crucial for HP Inc as it attempts to enter the copier machine market, which requires machines that can quickly print multiple copies.
But, what might this mean to the consumer, let us explain…
In our opinion, not a great deal to the home consumer, as Samsung’s printer business strength lies mainly in its laser printing technology. So any potential medium to long-term impact will be seen more by businesses and other organisations. Also, any impact, will depend on what is negotiated in the final agreement and the future strategy that HP Inc adopt, such as:
- Will HP Inc keep the Samsung printer brand?
- Will HP Inc invest in developing Samsung’s current printing technology further?
- How will the consolidation be carried out?
We think, the ASIA market was a critical factor in this deal going ahead. But, as the Samsung brand is so strong in ASIA, we ask what impact will this have on the ability of HP Inc to grow their market share in ASIA, if they rebrand Samsung’s printer business to HP?