HP today announced that it will seek an alternative business model for its HP-branded cameras and shift resources toward its Print 2.0 initiatives. HP is currently working to identify an original equipment manufacturer (OEM) partner that would be licensed to design, source and distribute digital cameras under the HP brand. HP will continue selling its own cameras through the holiday season and intends to have the partnership arrangement in place in the first half of 2008.
HP hopes this shift in strategy will enable the company to accelerate its investment in Print 2.0 initiatives, while accelerating the company's retail photo-finishing business. Print 2.0 services include home photo printing and online photo services.
Announced in May 2007, the company's Print 2.0 strategy focuses on three areas. First, HP wants to create a next-generation digital printing platform. The next-generation platform would hopefully improve print speeds, and lower the cost of printing for high-volume commecial markets. Second, HP wants to focus on printing from the Web. Finally, the Print 2.0 strategy aims to extend the HP brand, especially where it applies to digital content creation and publishing, reaching out to customers that the company perhaps hasn't targeted previously with its printing efforts.
As a result of its new camera business strategy, HP will take a pre-tax charge of approximately $30 million in the fourth fiscal quarter ending Oct. 31, 2007.
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