How HP Views the A3 Copier Market

In September 2016, HP (HPQ) announced its intention to acquire Samsung’s (SSNLF) Printing business for $1.1 billion. This acquisition was completed in November 2017. While the acquisition should help HP gain traction in the A3 space, the company expects short-term headwinds to reduce its installed base.

HP launched several Printing products last year and is looking to expand into new channels. HP aims to penetrate the A3 copier space with its differentiated technology. It is using printing laser technology, resulting in a cost advantage to channel partners and consumers.

HP has an ~8% market share in the A3 space

Although HP is still in the early stages of selling its full portfolio, the company has claimed to have a 7.9% market share in the A3 copier space. The company is optimistic about the positive customer response to its focus on the security of its products. Security continues to be an attractive selling point, not just for connected personal computers but also for connected printers.

HP continues to be flexible in its product offerings, providing ink to enterprises at half the cost of laser technology. HP is now targeting a share of 12% in this market by the end of fiscal 2020.

Last year, HP valued the total available A3 market at $55 billion. Achieving a 12% share in this space would mean annual revenue of $6.6 billion in this vertical. HP has detailed plans to penetrate the A3 space in every country over the next few years. In the US A3 copier space, HP competes with tech giants Canon (CAJ), Ricoh (RICOY), Xerox (XRX), Konica Minolta, and Toshiba (TOSYY), who had market shares of 26%, 20%, 16%, 14%, and 6%, respectively, at the end of 2016.

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I find most SMB A3 copier decision makers assume that all copier vendors in 2018 offer high levels of product security.

They weight this function lightly in the decision making process and rarely consider this a knock out feature.

I have watched all of the HP "Wolf" security videos.  They are well produced but portray very unlikely chain of circumstances that are only likely to happen in a James Bond movie.

Just want to throw this out there...I  have done very well selling A4 devices due to the fact that the majority of businesses, schools, and other users of devices never run A3 size paper.

Would it not make more sense to develop these type of devices that by the manufacturers than continue fighting for what is left of the A3 market

Thoughts?

I sell A3 copiers every day and expect to do so 10 years from now.

I might have to walk back a bit SMB buyers fears about security.

It was revealed today that State actors like Russia (with vast funds and skills) are actively probing for weaknesses in IT infrastructure to conduct espionage and steal intellectual property.

http://thehill.com/policy/cybe...-on-internet-devices

A good copier sales rep sells fear part of the time to his clients.  I do not think that HP solely occupies the high ground on device security.

Notice the linked article does not mention print devices.

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