Is Hewlett-Packard merging its PC-printer units?

New Delhi: The news that PC and printer giant, Hewlett-Packard, is considering a plan to restructure the company and combine its printer and personal computer division is gaining ground in the global market.

When contacted the channel partners and the solution providers on theirviews on the much talked about fusion, the box pushers expressed that itmay create a tough time for them to earn better margins. Solution providers (SPs) are hoping that this unity would help them in offering complete solutions to their customers at a much better price.

Giving his views on the information, Sunil Kakkad, CEO of
Ahmedabad-based Sai Infosystems said, “The combination of PC and printer business would be a good opportunity for the SPs. Through this merger, they can offer complete solutions to customers. Today, they offer PCs
with servers. Once the printer is also added in the solution, customers
can get the whole service at a better price. However, this would create
a tough time for the box pushers as it might create a drop in the
margins and they will have to struggle to get higher profitability.”

Offering a positive view on the possible blend, PL Suhasaria, CEO of
Kolkata-based Caltron mentioned, “If they are actually considering it,
it will be a better move for the company as well as the channel
partners. Till now, partners who have been selling printers were
focusing on all the brands at the same time. Therefore, their focus on
HP as a brand reduced. Once the PC business is combined with printers,
partners who are selling HP can focus more as they are selling all the
required products at the same time.”

Few partners also opined that since it has been circulated without any
official sources, it could be a rumour and one need to wait and watch
till HP officially announces their restructuring plans. RS Shanbagh, CEO
of Bengaluru-based Value Point Systems accorded, “I have just heard
about this information and as such I have not got an official statement
from HP. So it could be a rumour also. It is difficult to predict the
results till there is any confirmation on the report.”

Sounding a similar note, Devendra Taneja, CEO of New Delhi-based PC
Solutions said that one cannot expect much difference in the business
profile of the channel who is selling HP. “PC addresses a generic market
and multi-branded printers are also being driven by the OEM vendors. So
it may add more competition in the market. HP wants to move its PC
business in the solution space. Everything is a speculation as of now
and till the time things are formally finalized, it is difficult to
predict the market reaction,” Taneja mentioned.

When contacted HP India for a comment on the information, the company
declined to give a comment, mentioning it to be rumour and speculation.

HP is the world's number one PC maker, holding roughly 20 percent share
of the global market. In the Indian PC market, HP held the largest share
during Q1 2009 (January—March 2009), according to IDC India's latest
study. HP maintained its lead and gained share in PCs (desktops and
notebooks) to capture 18.2 percent of the Indian PC market in terms of
unit shipments.