Let me share with you what I've learned in the Photizo group webinar : "HP buys Samsung". 5 experts have shared their profound knowledge about this big financial and industrial operation. I have taken the liberty to make a brief summary attached below.

More than 50% of the 700 attending the webinar, felt that the operation "HP buys Samsung" was revolutionary or transformative for the market.

Let's get started:

HP background

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In the last 30 years Hp and Canon had an agreement: Hp provides a strong brand and Canon provided them with technology. In the lasts years, HP requested Canon their A3 Laser technology and Canon didn't provide it so HP had to shop around for other OEMs suppliers to find what they where looking for. Konica Minolta and Sharp were on the line.

After the HP split 9 month ago, (HP inc. printer business and HP enterprise. servers and hardware) they claimed wanted to disrupt the market with new technology:   HP Wide Page technology it's already disrupting the printer market.  Laser printers needed also a boost specially to get into the A3 office market.

Samsumg background

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Samsung started disrupting the market since they've got into the printer business:

  • Mobile first friendly printing. Print from the phone, NFC friendly.
  • Tablet like control panel in MFP based in their well known Android.
  • 3rd party app friendly printers.
  • User friendly trouble shooting video guide embedded in every printer.
  • Few replaceable parts to simplify maintenance.
  • Very aggressive price strategy.

That's mainly because they've invested a fortune (8-10% revenue) in RD with 1300+ world class engineers working for the printer division.

Samsung threats

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The Samsung's Note 7 phone recall (exploding  battery) costed Samsung a fortune ( 5 $Bio in revenue lost + 22 $Bio in market value loss, even some airlines banned the 7 Note phone.

After an aggressive strategy trying to become world's # 1  printer manufacturer, they could only reach #5. Printer division brought less that 5% to the Whole Samsung group revenue.    

With the Note7 gate on the table, and the request for RD investments, it was the time to focus into their core and more profitable business, aka chip and phone manufacturing. 

HP and Samsung Love Story

 

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HP and Samsung Love Story

  • HP needed a technological partner to disrupt the laser market.
  • HP wanted to get into the A3 office market aggressively .
  • Samsung had 1,300 top class engineers in the RD department.
  • Wide page technology together with Samsung innovations give HP the widest printer portfolio in the market.
  • Samsung alone has 6,500+ printer patents. Patents in today's battlefield are gold.
  • Samsung have designed and built the 13 brand new laser printers from the 2016 HP protfolio.

hp_buys_samsung_printers

This looks like a major revolution in the market. According to Photizo group estimatons, HP may bring to the A3 market a 40-60 PPM Wide page printer for as little as $1,000 - $2.500 and a pro version for as little as $2,000 - $5,000. This is 1/10 the price of a Konica or Xerox laser printer.

Do you find this a game changer? 

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