HP Boasts About The Success Of Its Strategy To Lock In Print Customers
Portfolio Pulse from Benzinga Neuro
HP Inc. (NYSE:HPQ) CFO Marie Myers highlighted the success of the company's subscription-based model, particularly the Instant Ink service, which has over 11 million subscribers. This model has improved margins, with the Printing division's margin increasing from 14.8% in fiscal 2020 to 18.9% in fiscal 2023. The subscription service and Smart Tank hardware now account for 60% of total shipments, indicating a strategic shift in HP's business model in response to declining global print volumes.
December 05, 2023 | 7:52 am
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POSITIVE IMPACT
HP Inc.'s successful subscription model and increased margins due to the Instant Ink service and Smart Tank hardware are likely to be viewed positively by investors, indicating a sustainable revenue stream and improved profitability.
The positive impact on HP Inc.'s stock is based on the reported increase in margins and the successful adoption of the subscription model, which is likely to generate a stable and recurring revenue stream. The transition to a subscription model, which has been well-received by 11 million subscribers, is a significant shift in strategy that addresses the challenge of declining print volumes. The increase in the Printing division's margin from 14.8% to 18.9% is a strong indicator of improved financial health, which is typically rewarded by the market.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100