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HP is buying Samsung's printer business in hopes of disrupting copier industry

By Shawn Knight
Sep 12, 2016
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  1. HP on Monday announced intentions to acquire Samsung’s printer business as part of a deal valued at $1.05 billion .The business, currently comprised of 6,000 employees including 1,300 engineers and researchers, will be spun off into a separate company on November 1 before being sold to HP.

    The deal, HP says, will position it to disrupt and reinvent the $55 billion copier industry, a segment it says hasn’t innovated in decades. In a press release, HP described copiers as outdated, complicated machines with dozens of replaceable parts requiring inefficient service and maintenance agreements.

    The company’s vision is to replace standard office copiers with what it calls “superior” multifunction print (MFP) technology. It just so happens that Samsung has built a solid A3-sized MFP portfolio consisting of products that HP says deliver the performance of copiers with the power, simplicity, reliability and ease-of-use of standard printers with as few as seven replaceable parts.

    It’s hard not to side with HP on this as the copier remains as one of the last office relics yet to see a major technological advancement.

    The sale also includes an intellectual property portfolio consisting of more than 6,500 printing-related patents.

    Samsung, meanwhile, says the sale is part of the company’s efforts to concentrate on its core business areas. As per the agreement, Samsung will source printers from HP and continue to market in Korea under the Samsung brand.

    The deal is expected to close within 12 months pending regulatory approval at which time Samsung will make a $100 million to $300 million equity investment in HP through open market purchases.

    Permalink to story.

     
  2. Kenrick

    Kenrick TS Booster Posts: 187   +88

    Now HP has more valid reason to jack up the prices of inks and toners which cost more than the machine itself and the worst is the nagging ads when printing.
     
    Godel and Ben Myers like this.
  3. Squid Surprise

    Squid Surprise TS Guru Posts: 861   +272

    All companies already do that... I'm fine with being gouged, but it's insane how much companies pay for copier maintenance contracts... While I'll have to see it to believe it, HP's claims can only mean good things for companies who have been slaves to Xerox, Ricoh, etc...
     
  4. Uncle Al

    Uncle Al TS Evangelist Posts: 1,663   +772

    Interesting comment .... my Brother printer does not do that and as long as I've been using it I've never had them abandon a printer by refusing to provide driver upgrades. HP has done that to me twice, which why I'm now a "former HP user" .....
     
  5. Squid Surprise

    Squid Surprise TS Guru Posts: 861   +272

    We're talking about copiers, not printers... If copiers were like printers, they'd be better...
     
  6. wiyosaya

    wiyosaya TS Evangelist Posts: 1,035   +269

    MFP == Multi-function Printer
     
  7. MoeJoe

    MoeJoe TS Maniac Posts: 398   +207

    HP will ruin the reputation Samsung has built in this sector.
    I use a SCX MFP at work. It's reliable, cost effective and it was worth every penny.

    HP (and India) will ruin this product line. No doubt about it.
     
    Godel likes this.
  8. MoeJoe

    MoeJoe TS Maniac Posts: 398   +207

    Better re-read the article. HP is buying the MFP division and MFP's are essentially the new copier.
     
  9. Squid Surprise

    Squid Surprise TS Guru Posts: 861   +272

    That's my point.... Saying my xxx printer works better than my hp printer is irrelevant... This will be HP using Samsung printer tech to make better COPIERS!
     
  10. MoeJoe

    MoeJoe TS Maniac Posts: 398   +207

    Reading isn't fundamental ... for you.
    That much is obvious.
     
  11. p51d007

    p51d007 TS Evangelist Posts: 908   +384

    I've worked on Samsung MFP's since they introduced them to the states a few years back. The SCX-8030, when we got the first one (and it's color cousin the CLX-9230)...we unboxed them and before turning them on, kind of went through them, looking them, pulled the covers and what not. Very nice on the inside, laid out well, clean.
    The only variable was the SOFTWARE. Boy, talk about an omen! We had nightmare after nightmare with their software. Next versions that came out, the software was just as bad. Next version the same. The current versions that came out in the spring, the SL-X74/7500 are built around Android..."phone" style swipe screen, icons, widgets. It's "not" as bad as the previous software but still has bugs. Unless HP beefs that up, customers are going to complain.
    Plus, 99% of the other issues we've had is with their imaging units. They just don't last, fail for all sorts of reasons....CRIM chip problems, sucks all the developer(carrier) out, stops adding toner because the add motors are junk, fuser belts that if you are lucky, will make it 3/4 through the maintenance cycle. Yeah, the parts are warrantied, but, customers get tired of seeing you all the time. We've even had a dozen or so replace them with a different brand we carry. The only reason they bought Samsung, was the name, and the fact Samsung priced them extremely low, just to get into the market.
    Their service support sucks and, a lot of times if you do call them, their standard answer is if you figure it out, call us so we can add it to the database.
    I'm telling you, this might be a BAD deal for HP, unless they do some serious rework of their print engine and software!
    I've been doing this for almost 37 years, and out of all the brands I've worked on, Sharp, Canon, Toshiba, Ricoh, Konica/Minolta...Samsung's have the WORST reputation around.
     
    Phr3d likes this.
  12. Squid Surprise

    Squid Surprise TS Guru Posts: 861   +272

    And comprehension clearly isn't your forte.... But hey, keep on truckin
     
  13. Uncle Al

    Uncle Al TS Evangelist Posts: 1,663   +772

    Sorry folks, but unless you don't work in an office that has them, most copiers now serve as printers and quite a few printers have a copier function as well ...... but I'm still swearing off HP ..... their customer service leaves a LOT to be desired and if you need to re-download a driver, they often charge for it after a few years ......
     
    p51d007 likes this.
  14. MoeJoe

    MoeJoe TS Maniac Posts: 398   +207

    HP is a garbage company. I'd go so far as to say, their CS dept leaves EVERYTHING to be desired.
     
  15. MoeJoe

    MoeJoe TS Maniac Posts: 398   +207

    Well then, HP and Samsung (MFP division) are made for each other.
     
    p51d007 likes this.
  16. Makson

    Makson TS Rookie Posts: 17

    HP phooey, can't use generic ink, HP says, "Will void the warranty", past warranty date I was buying generic ink, switch machine off twice, reload ink again. worked fine until an update ... or HP load and destroy, and could no longer use generic ink.
    I trashed the HP and bought a Brother and use generic ink ..... no problems. The ink is from a local Printer shop, the ink is sourced from manufacturers who supply big name brand printer manufacturers ...... half the price of 'name brand' ink and 'chipped' to suit Brother.
     
    MoeJoe likes this.
  17. MoeJoe

    MoeJoe TS Maniac Posts: 398   +207

    Brother is eating HP's lunch.
     
    p51d007 likes this.

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