HP Inc. Discusses Newly Expanded HP-Xerox Partnership

Earlier this month, HP Inc. and Xerox announced an interesting expanded business partnership. Under that expansion, Xerox will  source from HP certain A4 and entry-level A3 printers and copier/MFPs, while Xerox will supply toner to HP for these and other products. The printers will be based primarily on the laser printing technology HP acquired from Samsung in 2017 with its purchase of Samsung’s printer group. The two companies also agreed to partner in the Device as a Service (DaaS) market.

Enrique Lores, president of Imaging and Printing at HP Inc., recently spoke with CRN about the expanded HP-Xerox partnership, stating:

“In the market, the personalities of the two portfolios are going to stay fairly differentiated. The engines will be common. But all the software tools, the front panel, everything that customers will be interacting with is going to be different. So I don’t think it’s going to make the situation more or less competitive for our partners, because the differentiation between the two portfolios is going to stay fairly high.”

Lores also said that HP printers offer better security than Xerox printers – something Xerox is sure to disagree with – to differentiate them, as well as a simpler user interface (also something Xerox is likely to disagree with).

Lorres also reiterated that HP will continue to seek to expand into the managed print services (MPS) market – what HP is also calling printing-as-a-service – with MPS becoming even more critical to HP because of a recent 3-percent year-over-year decline in supplies revenue (with MPS, of course, the vendor – in this case HP and HP partners – are contracted to supply customers with toner and ink – effectively locking out customers from using non-HP third-party supplies).

Fujifilm Response

As for Fujifilm, CRN reported earlier this month that the expanded partnership doesn’t seem to concern the Japanese company, which holds joint partnership with Xerox in Fuji Xerox. Xerox has traditionally sourced much of its hardware from Fuji Xerox.

“This announcement does not have a major impact on Fuji Xerox’s business, as Xerox already has been sourcing entry-level products from other companies,” Fujifilm said in a statement. “Mid- to high-level (A3 MFP) products that make up a large part of Xerox’s revenue have been both developed and provided by Fuji Xerox. With regard to Fujifilm’s position on the combination of Fuji Xerox and Xerox, that has not changed and Fujifilm believes that the combination is not indispensable for Fujifilm/Fuji Xerox’s growth. We continue to maintain a cooperative relationship with Xerox.”

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