In an analyst briefing, HP reveals they now have over 10 million instant ink subscribers and the HP+ programme is now operating in 35 countries
In the recent analyst briefing Tuan Tran, the President of Imaging, Printing & Solutions, at HP Inc. (HP) revealed that while revenue growth contracted by 1.5%, their operating profit grew by 7.5% and included “HP outperformed the competition”
The largest area of growth was the HP graphics segment that grew +4.1% to $48 billion on the back of strong growth in key Industrial graphics segments such as labels & packaging. At the same time, sales of media grew +1.2% to $18 billion (€15.5 billion).
In the office segment, sales rose by +0.7% to $80 billion (€69 billion) as the office is becoming hybrid, with more digitisation, services & solutions. Whereas the home segment declines -2% to $44 billion (€38 billion) as the work from home uplift dissipates.
HP reports the Instant Ink programme now has over 10 million subscribers and >30% revenue and subscriber growth that generates around $500 million (€431 million) in subscription revenues. But is experiencing a 1% (100,000) monthly subscriber churn rate.
HP continues to focus on rebalancing system value towards hardware to be less reliant on supplies, increase hardware margins and reduce the number of unprofitable customers.
The HP+ programme, provides exclusive solutions and incentives including an extended 12-month warranty. If you sign up for it, you get 6 months of HP Instant Ink (a new ink or toner cartridge delivered to you). But after 6 months, a monthly fee is automatically charges, unless cancelled.
Also included is the “connected cloud” that automatically detects and fixes connectivity issues and new “Smart Security” settings monitoring system that detects and helps mitigate malware attacks.
Customers who sign up to the HP+ programme will require an HP account, internet connection, and use of Original HP Ink or Toner for the lifetime of the printer. Once activated, HP+ is embedded in the device and will require the use of original HP ink or toner for the lifetime of the printer.
