Hewlett-Packard Co. Tuesday introduced a broad lineup of laser and inkjet printers aimed at the small- and medium-business market, where color printing is growing in popularity.
Palo Alto, California-based H-P, the No. 1 printer maker, introduced some eight printers ranging in price from $149 to $799, as well as digital projectors and a scanner at its imaging and printing group conference in Half Moon Bay, California.
The printing business for H-P, which is also the No. 2 computer maker, is its most profitable and accounted for nearly 80 percent of operating profits in the most recent quarter.
H-P's annual imaging and printing conference for analysts comes as its printing business faces stiff pricing pressure from rivals including Lexmark International Inc. and No. 1 PC maker Dell In., which resells Lexmark printers.
In 2005, H-P aims "to continue to grow the business by really focusing on the balance between core and emerging, new business," said Vyomesh Joshi, who runs H-P's printing business.
Among the new printers is H-P's Color LaserJet 2600n, which starts at $399 and is up to 60 percent faster than comparably priced color laser printers, H-P said.
Joshi cited a study done by International Communications Research commissioned by H-P that found that 60 percent of small and medium businesses now use color marketing materials.
H-P's operating profit margin in its first quarter narrowed to 15.4 percent from 16.6 percent in the prior quarter and from 16.4 percent in the year-ago period.
Joshi and Chief Financial Officer Bob Wayman have pledged to take measures to shore up profit margins through cost cuts and to regain market share lost to Lexmark, Dell and others.
Earlier this month, H-P said nearly 2,000 workers had accepted voluntary severance packages in the imaging and printing business under a program begun in April to cut costs and boost profitability.
H-P employs about 150,000 people worldwide and about 30,000 of them work in the imaging and printing business.