HP Inc. to buy Samsung Electronics’ Printer Business

HP Inc. to buy Samsung Electronics’ Printer Business

Anne Valaitis
Sep 12, 2016




HP Inc. announced today they are set to buy Samsung’s printer business for a reported $1.05 billion. HP Inc. went public with a number of announcements today during their Global Partner Conference in Boston, Ma continuing for the next few days. As part of the Samsung announcement, HP is set to gain about 6,000 Samsung employees once the deal is finalized. HP sets its expectation to close within 12 months (according to Enrique Lores HP, president of imaging and printing). Of the 6,000 employees, approximately 2,000 are research and development engineers, 1,000 are sales and support staff and the remaining are in service and manufacturing, Lores said. As of this writing, Samsung has not shared the revenue that had been generated from their printing business.


In addition to the acquisition announcement, HP Inc., announced today their next generation A3 printing portfolio aimed at disrupting the $55B copier segment with 6 new next generation Pagewide and LaserJet platforms.

InfoTrends will work to develop a detailed analysis piece to be published in the coming days as more information is gathered and the HP Global Partner Event concludes.

Samsung is said to be divesting the printer business as a means to focus on its core smartphone, television and memory chip businesses. HP will grow, with this acquisition, in areas such as Asia and will gain intellectual property such as a patent portfolio that includes approximately 6500 printing technology patents. In addition the obvious nature of eliminating a rival cannot be dismissed in what is a very competitive market that has had its share of challenges.

Dion Weisler, President and CEO of HP Inc. was emphatic in today’s Global Partner Conference presentation webinar that HP and the industry in which is competes must innovate, and change “…in order to grow, we must embrace change…keep reinventing everyday…” Dion was also joined by Satya Nadella, CEO of Microsoft who echoed many of same sentiments regarding change and innovation. Satya stated that we need to look differently at IT, “IT is not an enabler of office work, it is at the core of business…” In addition they both agreed that the industry has been lacking innovation with too much emphasis on a single product or area “…no longer can you over index on just the software, or just the hardware…”.

We look to share more information, insights and predictions to the ramifications of the HP Inc acquisition of the Samsung printing business in the next few business days.

Samsung Electronics America and Samsung Telecommunications America Come Together As One New U.S. Organization

To Better Serve Customers, Samsung Electronics America and Samsung Telecommunications America Come Together As One New U.S. Organization 

RIDGEFIELD PARK, N.J., December 10, 2014 – Samsung announced that effective January 1, 2015, a single U.S. organization will be established to drive continued growth in the consumer electronics, mobile and enterprise markets. The integration of the two current organizations as a single Samsung Electronics America will give customers and partners the advantage of a single point of contact. Gregory Lee will continue as President and CEO of Samsung Electronics North America, while Tim Baxter has been named President and COO of the new, integrated Samsung Electronics America.

The new organization will be positioned to focus on aggressive growth in new strategic initiatives.  By creating one business organization that will bring together all of the company’s branded consumer and enterprise business operations, Samsung will also be able to better serve its U.S. customers through strengthened business operations and collaboration across market segments.  A single business organization will also provide expanded career development and mobility programs for Samsung’s growing workforce.

Samsung’s U.S. offices will continue to operate with centers of excellence in Ridgefield Park, NJ; Richardson, TX; and Silicon Valley.

Samsung Brings Increased Productivity and Personalization with New ProXpress Printers and MFP’s

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RIDGEFIELD PARK, NJ – September 2, 2014 – Samsung Electronics America, Inc. announced the C2620DW, C2670FW, M4583FX, and M4580FX, a new line of ProXpress single and multi-function printers (MFPs) designed for desktop use, but with the functionality to run an office. These powerful devices are built for small and medium-sized businesses and comfortable in the enterprise. Businesses can customize applications to meet a variety of needs with XOA while the M4583FX and M4580FX feature the new Samsung Smart User Interface (UI) powered by Android™, the first time MFPs have come equipped with an Android operating system.

“Samsung is dedicated to producing high quality, cost efficient printers to provide business users with an unparalleled printer experience,” said Matt Smith, Vice President of Sales and Marketing, Printing Solutions for Samsung’s Enterprise Business Division. “We understand the importance of seamless connectivity and simple user interfaces. Adopting the Android operating system into our printers makes them even simpler to operate and optimize.”
M4583FX and M4580FX: Powerful Performance and Intuitive Operability
The M4583FX and M4580FX are built for performance with fast scanning and powerful paper handling powered by a 1GHZ dual core CPU. Both models feature quick, reliable and economically efficient printing at speeds of up to 47 ppm. A Dual Scan Document Feeder (DSDF) allows for double-sided scanning at up to 60 images per minute. Further, a long life drum supporting up to 100,000 pages and high yield toner supporting up to 40,000 pages* are designed to perform longer, resulting in a lower total cost of ownership.
With the new Samsung Smart UI, along with an intuitive 10.1-inch LCD touchscreen display powered by Android, the MFPs can operate independently without a PC. Businesses can customize their printing experience with web search, quick print, and document preview functions. Both models also have an option to add wireless and active NFC capabilities, which provides users with the ability to effortlessly print files from an NFC-enabled smartphone using the Samsung Mobile Print App.
The M4583FX and M4580FX feature Samsung’s XOA-Embedded platform, allowing solutions developers and businesses to greatly enhance the functionality of these machines by building custom applications for a variety of business needs. From smarter workflows to enhanced security, custom XOA solutions can modernize an office and elevate businesses to new heights of efficiency.

C2620DW and C2670FW: Professional Color Quality and Ease of Use
Building on the successful line of CLP-680 series printers and CLX-6260 series MFPs, the C2620DW and C2670FW are enhanced for the modern office.Featuring Samsung’s Rendering Engine for Clean Page (ReCP) technology and polymerized toner, the printers deliver sharp vibrant prints at speeds up to 27 ppm for black & white and color.
The C2620DW and C2670FW are powered by a 4.1-inch LCD touchscreen display for intuitive and easy usage. Advanced mobility features, such as native Google Drive support and built-in NFC, allows users to print files from the cloud and from NFC-enabled smartphones via the Samsung Mobile Print App.
Additionally, the devices include the XOA-Web platform, allowing business to integrate server-based smart solutions to enhance the feature set and improve productivity. The cost per page has been reduced from previous models, resulting in a lower TCO and better value to businesses.

Samsung Business Core Printing Solutions (BCPS)
BCPS is a software suite that runs on the XOA-Embedded platform and was created to improve workplace efficiency for small to medium-sized businesses. With custom workflows, secure print release, and cloud printing, IT managers can easily implement the kind of print and document management solutions typically seen in the enterprise. By installing BCPS on a M4580FX or M4583FX, businesses can connect up to five XOA-Web enabled machines, including the new C2620DW and C2670FW, which will save on costly infrastructure and servers.

Fully Mobile
All four new models are Google Cloud Print and Apple AirPrint compatible, providing a universal user experience no matter how users choose to print. In addition, the Samsung Mobile Print App facilitates printing and scanning from any Android or iOS powered mobile device with any Samsung network shared printer and MFP without the need for a computer. The app can be easily downloaded to a smartphone or tablet from popular app stores such as Google Play. With its capability to print Microsoft Office documents as well as support for Job Accounting and Secure print, businesses can improve the efficiency of their increasingly mobile workforce. 
All Samsung printers can be found at select Samsung resellers and channel partners. Local availability can be determined by calling 1-866-SAM-4BIZ or by visiting samsung.com/business. Follow us on Twitter @SamsungBizUSA.

About Samsung Electronics America Enterprise Business Division 
As a global leader in Information Technology, Samsung’s Enterprise Business Division (EBD) is committed to introducing new business experiences across a diverse spectrum of industries from retail to healthcare, hospitality to sales.  We believe technology brings business and customers together — to better share, collaborate and discover new opportunities. With a market-oriented approach to innovation, EBD is a division of Samsung Electronics America, Inc. (SEA), a U.S. subsidiary of Samsung Electronics Company, Ltd. (SEC). For more information, please visit samsung.com/business, call 1-866-SAM-4BIZ or follow Samsung EBD via Twitter: @SamsungBizUSA. 

About Samsung Electronics Co., Ltd.
Samsung Electronics Co., Ltd. is a global leader in technology, opening new possibilities for people everywhere. Through relentless innovation and discovery, we are transforming the worlds of TVs, smartphones, tablets, PCs, cameras, home appliances, printers, LTE systems, medical devices, semiconductors and LED solutions. We employ 286,000 people across 80 countries with annual sales of US$216.7 billion. To discover more, please visit www.samsung.com.
*ISO Disclaimer

Samsung poised for ‘paradigm shift’ into printing

By Peter Nowak |

Conquering the world of smartphones and televisions would usually be enough for any one company, but Samsung Electronics has grander ambitions. The South Korean giant is readying a new, full-throttle foray into the exciting and sexy world of ... printers?

After announcing record quarterly profit on Friday morning of 9.5 trillion won (US$8.3 billion), a 47-per-cent jump from a year earlier, the move toward printers is unusual, to be sure, given the general sentiment about the business – that it’s dying.

Yet Samsung is aiming for $400 billion in annual revenue by 2020, or more than double its 2012 total of $187 billion. With market observers starting to doubt that the company can continue its momentum in phones, a key part of that projected growth will be expanding into previously untapped markets. That includes printers, or rather, "printing," as executives are keen to point out. There's a big difference.
"We're poised to lead a paradigm shift," says Hyusang Ha, vice-president of product strategy for printing solutions. "We feel the world of printing is changing."

Is printing dead?
Printing is indeed changing. On the consumer side it’s safe to say it’s drying up. Paper consumption has dropped off a cliff everywhere in the world, with the exception of China, since around 2007, which is – not coincidently – when the mobile revolution began in earnest. Since the arrival of the iPhone, consumers have finally been moving to the paperless existence promised by technology for so long. In North America alone, consumption has dropped by about 30 per cent over the past five years.
It’s easy to understand why. With smartphone and tablet apps dominating, people are finding fewer reasons to print out things like travel directions and boarding passes, especially with the exorbitant price of printer ink.

Samsung has fared decently in the consumer segment, claiming up to a quarter of the market, depending on the country. The company has about 5 per cent of the total global market, according to tracking firm IDC, after HP, Canon and Epson – three printing giants.
The problem, Ha says, is that the consumer segment accounts for just over a tenth of the total $200 billion market and, as the paper consumption numbers indicate, it’s flattening out. The enterprise side, on the other hand, is not only a much bigger market, it’s also growing at a healthy 7 per cent per year. That’s where Samsung wants to be.

The enterprise “printing” business is different than the consumer “printer” business because it’s about more than just hardware, Ha says. While consumers simply buy a printer and then refill it with ink every now and then, businesses require ongoing support, cloud hosting, set-up and maintenance, as well as continual supplies, all of which amount to regular revenue for the service provider.

NFC to be key
Pushing into the segment won’t be easy, since it’s currently ruled by established powerhouses such as Xerox and Ricoh. If Samsung has an edge, it may actually be its consumer electronics prowess.
The company is drawing on its mobile expertise by building near-field communications technology into the printers, the first of which will be available in North America in late July. The sensors will allow for a “tap to print” function, where the user will simply touch their phone or tablet to the printer in order to start a job, similar to how Galaxy S devices currently share photos.

Chin Yoon, vice-president of the commercial business group, says NFC is a technology that will soon be everywhere because it allows for quick, efficient and secure transmission of data. Putting it in printers will accelerate its uptake. “We expect that you cannot avoid it," he says.
Samsung also expects NFC will somewhat counter the trend toward paperlessness. Yoon points out that printing isn’t on the decline solely because people don’t want to do it, it’s just that they’re using mobile devices more and, so far, it hasn’t been very easy to print from them.

Ultimately, the company’s move into printing looks like someone driving a car in the wrong direction on a one-way street. While established giants such as HP and Epson are trying to lower their exposure to what conventional wisdom deems is a business in decline, Samsung is convinced there’s still gold in the printed page.

The problem that rivals are having, in Samsung’s view, is that they’re focusing on the wrong markets. Xerox and Ricoh are concentrating almost exclusively on Fortune 1000 companies, where there isn’t much growth, while HP and Canon are too tied to the shrinking consumer market. Small and medium-sized businesses is where Samsung sees the real opportunity. There is perhaps money to be made in those cracks, and as the established players look for opportunities elsewhere.

Staying the course with consumer printers, however, isn’t an option for anyone, Yoon says.
"We can only survive as a division if we're successful in B2B.”

Worldwide Hardcopy Peripherals Market Sees Year-Over-Year Decline in Both Units and Shipment Value in the First Quarter of 2013, According to IDC

FRAMINGHAM, Mass., May 15, 2013 – The worldwide hardcopy peripherals market decreased 9.7% year over year with 25.8 million units shipped in the first quarter of 2013 (1Q13), according to the International Data Corporation (IDC) Worldwide Quarterly Hardcopy Peripherals Tracker. Shipment value experienced a decline of 5.7% year over year to $14.3 billion. This is the third consecutive quarter of year-over-year decline in worldwide shipment value.

"Markets are changing and this is bringing about changes in strategy and product portfolios. The key areas of focus for many vendors are mobility, the cloud, and how users access material for printing. With many workers either working from home or working remotely several times per week, they must be able to access their company information and, in many cases, print this information from a variety devices and locations. The key for manufacturers will be the ability to offer this in a format that makes it simple and easy for the business and its users," said Phuong Hang, Program Manager, Worldwide Quarterly Hardcopy Peripherals Tracker.
Once again the color laser multi-function printer (MFP) market had the greatest year-over-year growth, increasing 3.2% in 1Q13, followed by monochrome laser MFPs, which grew by 0.9%. But color inkjet MFPs continue to make up the majority of the hardcopy peripherals market with 50% unit share in 1Q13.

Technology Highlights

• The inkjet market, and more specifically the color inkjet MFP market, is still the technology that holds the majority share of the hardcopy peripherals market, with over 15 million units shipped worldwide, 13 million of which were color inkjet MFP units.
• In 1Q13 monochrome laser devices continued to rank second in units shipped (7.8 million units) and first in shipment value ($5.5 billion). Monochrome laser units have a 30% share of the hardcopy peripherals market in terms of unit shipments, but 39% share in terms of shipment value.
• Color laser devices represent a 42% share of the hardcopy market shipment value in 1Q13, while only taking up a 7% share of unit shipments.

Vendor Highlights

• HP – HP continued to be the number one ranked vendor in 1Q13 with worldwide market share of 38.7% despite a year-over-year decline of -13.4% on shipments of 10 million units. The U.S. was the strongest geographic region for HP in terms of unit growth, with close to 1% year-over-year gain in 1Q13.
• Canon – Canon achieved the best year-over-year shipment growth (13.7%) among the top 5 vendors with 5.3 million units shipped and maintained its position as the second ranked vendor in the overall market. This performance was driven by positive year-over-year growth in all regions except Japan.
• Epson – Despite year-over-year decline of -26.8%, Epson remained in the top 3 with 3.9 million units shipped in the worldwide hardcopy peripherals market. Similar to HP, the U.S. was Epson's best performing region. There was a significant uptick in some of Epson's main models (Workforce WF and Workforce Pro). Instant rebate programs of up to $50-$70 were ongoing during the quarter on these portfolios.
• Brother – Brother strengthened its number 4 position by posting 10.6% year-over-year growth, the second best performance among the top 5 vendors. The company gained 4 points from a year ago to 20% share in the overall market. Brother enjoyed positive year-over-year growth in all regions, except for Japan and Middle East & Africa.
• Samsung – Samsung continued in the number 5 position in 1Q13 with 1.7 million units shipped and -2.7% year-over-year growth. The vendor experienced year-over –year gains in the U.S. and Western Europe while declining in Asia/Pacific (ex. Japan) and Middle East & Africa.

IDC Worldwide Hardcopy Peripherals Shipment Value, Market Share, and Year-Over-Year Growth, First Quarter 2013 (shipment value in $M)

Vendors	1Q13 Shipment Value	1Q13 Market Share	1Q12 Shipment Value	1Q12 Market Share	1Q13/1Q12 Growth
1. Xerox	$2,425	17.0%	$2,557	16.9%	-5.2%
2. Ricoh	$2,273	15.9%	$2,234	14.7%	1.7%
3. HP	$2,030	14.2%	$2,270	15.0%	-10.6%
4. Canon	$1,867	13.1%	$1,991	13.1%	-6.2%
5. Konica Minolta	$1,291	9.0%	$1,326	8.7%	-2.6%
Others	$4,421	30.9%	$4,792	31.6%	-7.7%
Total	$14,306	100.0%	$15,170	100.0%	-5.7%

Source: IDC Worldwide Quarterly Hardcopy Peripherals Tracker, May 2013
Notes:

• IDC tracks A2-A4 devices in the Quarterly Hardcopy Peripherals
• Hardcopy Peripherals include single-function printers, multifunctional systems (MFPs), and single-function digital copiers (SF DC) for both office-based and production segments.
• Data for all vendors are reported for calendar periods.

For more information about IDC's Worldwide Quarterly Hardcopy Peripherals Tracker, please contact Phuong Hang (Phang@idc.com).
About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 49 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

Gartner Says India Printer Copier and Multifunctional Product Shipments Declined 4.7 Percent In The Third Quarter Of 2012

Gartner Says India Printer Copier and Multifunctional Product Shipments Declined 4.7 Percent In The Third Quarter Of 2012

Mumbai, India, December 20, 2012—

The combined serial inkjet and page printer, copier and multifunction product (MFP) market in India totaled 7,60,778 units in the third quarter of 2012, a 4.7 percent decline from the third quarter of 2011, according to Gartner, Inc. However, total end user spending stood at USD $246.5 million, up 31 percent from the same period last year.

“The festive season did not really resuscitate the printer copier market; as was expected by most of the major hardware providers. With besieged economic environment and green initiatives gaining growing importance, organizations adopted a ‘wait and watch’ approach on their IT spending for peripheral devices,“ said Amrita Choudhury, research analyst at Gartner. “Most of the technology providers suffered on the product front. However, services such as managed print services, cloud printing, and document outsourcing witnessed positive responses from the Indian market. The dissuasion from the home segment continued with shipments in the third quarter of 2012 declining 18 percent compared to the third quarter of last year, which indicates this will be a fast-declining market compared to the professional segment.”

HP maintained its leadership in the Indian printer, copier and MFP market (see Table 1), as its market share totaled 51 percent, followed by Canon with 23 percent market share. Epson accounted for 9 percent, while Samsung accounted for 8 percent of market share in the third quarter of 2012.

 Table1

 India Printer, Copier and MFP Unit Shipment Estimates, 3Q12 (Thousands of Units)

Vendors	3Q12 Shipments	3Q12 Market Share (%)	3Q11 Shipments	3Q11 Market Share (%)	3Q12-3Q11 Growth (%)
HP	384.9	50.6	409.0	51.2	-5.9
Canon	170.9	22.5	195.6	24.5	-12.6
Epson	70.2	9.2	72.2	9.0	-2.7
Samsung	62.6	8.2	67.9	8.5	-7.9
Others	72.1	9.5	53.7	6.7	34.3
Total	760.7	100.0	798.3	100.0	-4.7

Note: Totals may not add up to 100 percent due to rounding

Source: Gartner (December 2012)

The Page A4 MFP segment grew 11.5 percent compared to the third quarter of 2011.The top three providers in the segment are HP with 51.8 percent market share, followed by Samsung with 22.1 percent market share, and Canon with 11.5percent market share. HP grew nearly 40 percent from the midsized business segment, Samsung recorded a stable performance of 26.6 percent in shipments from all businesses, while Canon suffered a major decline of 57 percent this quarter. The monochrome devices of this segment grew 12 percent coming from the impetus provided by the small business and government public sectors units PSUs, while the color devices suffered a decline of 20 percent compared to the third quarter of 2011.  

The Page A3 MFP segment increased 22.2 percent compared to the third quarter of 2011. Canon led the market with 23.2 percent market share, Ricoh took a step forward this quarter, ranking No. 2, accounting for 21.4 percent market share, while Konica Minolta ranked No. 3 with 18.4 percent market share. The monochrome segment accounted for more than 95 percent of the shipments in this segment, and grew 20.2 percent, similarly, color devices also showed 50.5 percent increase, mainly driven by the large businesses and reprographic production houses. Stable demand brought about by the replacement cycle and demand for managed print services also resulted in the healthy growth of this segment.

 The page printer market experienced a fall of 5.7 percent in the third quarter of 2012. HP dominated the market with 53.9 percent market share, followed by Canon at 28.8 percent market share, and Samsung with 9.9 percent market share in third quarter of 2012. HP grew 15.3 percent in the 11-20ppm printer segment. Canon and Samsung fell 23.3 percent and 34 percent in shipments from the 31-40ppm printer segment. Both color and monochrome devices in this segment declined 17.8 percent and 5.2 percent compared to the third quarter of 2011.

The Inkjet MFP market dropped 6.2 percent in unit shipment compared to the third quarter of 2011. HP suffered a decline of 29.2 percent compared to the same quarter of 2011, even though it accounted for 53 percent of the market share. HP focused on the larger businesses, and its newly launched DeskJet IA2515 was well received in the Indian market. Canon and Epson had a positive outlook for this quarter, with a 75 percent and 21.1 percent growth in shipments coming from the small businesses, accounting 27 percent and 16 percent market share.

The inkjet printers declined for seven consecutive quarters, as the market declined 24.5 percent compared to the third quarter of 2011. HP witnessed a shipment decline of 29.9 percent, and accounted for 47.4 percent of the market. Epson had a shipment decline of 19.1 percent, and had 38.5 percent market share. Canon, which had improved its inkjet printers in the second quarter, suffered a 17.9 in unit shipment percent compared to the third quarter of 2011, contributing to 14.1 percent of market share.

Additional information is available in the Gartner report "Quarterly Statistics: Printers, Copiers and MFPs, Asia/Pacific,3Q12 Update". The report is available on Gartner's website at  www.gartner.com/id=2244215.