Hewlett-Packard Co., the world’s largest maker or printers, introduced less-expensive color laser printers and toner technology as part of a plan to defend its market lead from competitors, including Dell Inc.
“Our goal is to double our printing business in 10 years, from $24 billion Monday,” said Vyomesh Joshi, head of the printing and imaging group, in an interview at a company event Monday in San Jose, Calif. “It’s important for us to figure out where we want to play and make some breakthroughs with the technology to make it happen.”
Hewlett-Packard, which got about 58 percent of its fiscal third-quarter profit from printers and supplies, has been bringing out new devices and cutting prices to win back business lost to rivals including Dell.
Printer shipments rose 10 percent last quarter as gross profits on the devices and supplies narrowed to 13 percent of sales from 14.8 percent. The company’s goal is to keep margins at 13 percent to 15 percent while adding new customers who may buy more-profitable supplies.
New machines offered Monday include a $4,999 combination printer-copier that’s on a par with devices that sell for $10,000 and more, Joshi said. The LaserJet 4730mfp, which prints up to 30 pages a minute, is a color-capable version of a monochrome model unveiled last November to tap demand for copiers. In the past year, Hewlett-Packard has increased its copier market share to 15 percent from 2 percent, Joshi said.
Shares of Hewlett-Packard fell 16 cents to $27.38 in New York Stock Exchange composite trading. The shares had gained 31 percent this year before Monday.
Tracking Software Palo Alto, Calif.-based Hewlett-Packard also refreshed its color LaserJet laser printer and color Officejet inkjet printer lines and added software that lets small and medium-sized business customers track supply levels across up to 15 networked devices, Joshi said.
Hewlett-Packard has about 40 percent of the market for color printers today, Joshi said. Color laser shipments jumped 31 percent last quarter. The market for color imaging and printing products, including supplies, is expected to reach $80.6 billion by 2009, according to Lyra Research Inc. in Newton, Massachusetts.
The company also introduced a toner line called ColorSphere that aims to improve the quality of photographs printed by laser devices, Joshi said. ColorSphere toner was developed with Hewlett-Packard’s partner, Canon Inc., he said. More-profitable supplies, such as toner and ink, accounted for more than half of the company’s $5.91 billion in printing sales last quarter.
To win more sales, Hewlett-Packard said starting Nov. 1 it will let small and medium-sized businesses design their own contracts for leasing or buying laser printers, supplies and services at a fixed monthly price.
