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Vendor : HP
Exam Code : HP5-B04D
Exam Name : Delta - Selling HP Printing and Personal Systems Hardware
Questions and Answers : 149 Q & A
Updated On : April 22, 2019
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HP5-B04D Delta - Selling HP Printing and Personal Systems Hardware

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HP5-B04D exam Dumps Source : Delta - Selling HP Printing and Personal Systems Hardware

Test Code : HP5-B04D
Test Name : Delta - Selling HP Printing and Personal Systems Hardware
Vendor Name : HP
Q&A : 149 Real Questions

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HP Delta - Selling HP

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video game-altering safety carrier, commercial virtual truth solution, and new PCs shine at HP’s world accomplice conference

news Highlights:

  • Introducing safety as a provider with HP DaaS Proactive safety service
  • Innovating for starting to be agencies with new HP ProBooks and HP ProDesk
  • Reimagining conferencing and collaboration solutions with HP Zoom Room solutions
  • Revolutionizing training with the HP Reverb VR Headset
  • Delighting buyers with design, mobility, and performance elements throughout HP ENVY and x360s
  • HOUSTON, March 19, 2019 (GLOBE NEWSWIRE) -- HP Reinvent: World partner discussion board – today at HP Reinvent, the company’s largest world associate adventure, HP Inc. unveiled a lot of daring new offerings – together with a ground-breaking safety service, a reducing-side industrial virtual reality (VR) headset, and superb client and commercial PCs – all designed to transform experiences across work and lifestyles.

    “As shoppers’ expectations for fabulous technology is better than ever, taking part with our partners to meet the evolving needs of the subsequent generation has certainly not been extra essential,” noted Alex Cho, president, own systems, HP Inc. “via growing ways for customers to manipulate, discover and protect in opposition t protection threats with HP DaaS Proactive safety service; redefining practising with HP Reverb; and, bringing commercial and client top class laptop design mainstream, we stay smitten by developing the area’s most enjoyable devices and intelligent options.”

    transforming Experiences for WorkSecurity as a ServiceThe security landscape continues to adapt, with endpoints being one of the crucial commonplace assault vectors, and sixty four p.c of businesses experiencing a significant breach by way of an endpoint within the closing 12 months alone1.

    HP is taking the lead in addressing these endpoint protection challenges, unveiling a brand new protection-concentrated managed provider designed to implement policies, actively display screen, proactively respond, and defend against the danger of undetected assaults.

    HP DaaS Proactive protection provider, a significant extension to HP’s award-successful machine as a carrier providing, is designed to move past anti-virus solutions and supply a vital additional layer of protection. as the world’s most advanced isolation protection carrier for info and skimming on windows 10 PCs2, HP DaaS Proactive safety provider extends insurance policy and security intelligence to radically change endpoints from your largest risk to your optimal defense. HP DaaS Proactive protection provides actual-time malware insurance policy for computing endpoints and possibility analytics via HP TechPulse. moreover, really expert carrier experts can be found to implement endpoint protection compliance and supply insights with certain kill chain evaluation to IT groups.

    The provider also contains a safety self-evaluation tool3 and scorecard, and cyber security options such incident response and cyberinsurance services from Aon4, a leading world knowledgeable capabilities company. HP has joined forces with Aon to bring comprehensive safety solutions to commercial businesses that span assessment, endpoint protection, breach response, and cyberinsurance. This aggregate of security as a provider and skilled functions from Aon gives a holistic, tightly built-in carrier experience for shoppers. For greater assistance, please discuss with www.hp.com/go/daas.

    “The strategic collaboration with HP extra demonstrates Aon’s holistic strategy to cyber chance management through integrating our CyQu evaluation methodology and our core-market coverage panel to diagnose customer chance, allow possibility switch and supply prescriptive remediation innovations,” talked about J. Hogg, CEO of Cyber options, Aon. “At Aon, we continue to innovate to solve our purchasers’ most urgent cyber challenges, and the combination of Aon’s cyber capabilities into the HP DaaS answer is facts of the enormous price we are able to create collectively.”

    Bringing premium Experiences MainstreamSMBs are passionate about their company, and having technology that helps them keep time and develop their business is paramount. They seek sturdiness and value. With virtually half of all SMBs nevertheless working windows 75, now could be the time for growing agencies to start the swap to an impressive new home windows 10 machine that securely unlocks the efficiency that gets the job carried out both in and outdoors the workplace.

    Designed for the modern SMB group of workers, HP has increased its AMD industrial portfolio with the addition of the HP ProBook 445R G6, HP ProBook 455R G6, and the HP ProDesk 405 G4 computer Mini.

    Powered by 2nd generation AMD Ryzen™ cellular processors, the HP ProBook 445R G6 and HP ProBook 455R G66 aid experts reside productive in the office and on the go. the new notebooks undertake the elegant design idea discovered across the HP EliteBook portfolio, that includes an ultra-slim aluminum chassis with crisp traces, clean edges and undergoes 19 MIL-STD tests7 for sturdiness. The one hundred eighty-diploma hinge allows users to put the instruments flat, making it more straightforward to share content material and collaborate, whereas HP Noise Cancellation reduces history noise by using up to 20dB8, offering a strong audio and video conferencing adventure.

    Story continues

    The HP ProDesk 405 G4 desktop Mini gives you the performance, expandability, and protection that SMBs need in a compact and stylish design. The notebook is the business’s first 400-collection computer mini, featuring a 2nd generation AMD Ryzen™ seasoned processor with developed-in Radeon™ Vega pics and can aid up to three displays9, serving a brand new market of customers who need a powerful equipment to create content material coupled with the superior safety and manageability capabilities of the AMD processor.

    Reimagining conferencing and collaboration solutionsToday’s staff prefers in-person conferences greater than outdated generations. Eighty-four p.c of Gen Z workers select in-adult communique and agree with virtual options including Skype and Zoom, as a method to meet face-to-face with colleagues10. today, HP announced HP’s Zoom Room options to make it easier for IT resolution makers to select a conferencing and collaboration answer that greatest meets the wants of their organization. HP Zoom Rooms options deliver effortless, customizable, and versatile meeting room alternate options that are cozy and manageable to small, medium, and large groups. by way of featuring the area’s most versatile collaboration solutions11, with HP Elite Slice for Skype and Zoom, HP makes it more convenient for staff to seamlessly communicate both in and out of doors of the workplace. greater counsel may also be discovered here.

    Revolutionizing commercial VR workspaces and workflowsAlso introduced at HP Reinvent is the new HP Reverb digital fact Headset professional edition, a grounds-up designed VR headset with twice the resolution, two-thirds the weight and half the U.S. charge of the HP blended reality VR Headset12. HP Reverb offers a really immersive and transformative adventure for work and existence with mind-blowing clarity with a extraordinary 2160 x 2160 panel per eye and a fantastic 114-diploma container of view. extra counsel on this announcement may also be found here.

    Introducing premium ServicesHP also announced HP Premier Care options to enhance its premium business notebooks, including HP EliteBooks and HP ZBooks. These set of ought to-have features give the correct insurance policy, support, and service stages to maximize user productiveness.

    transforming Experiences for LifeConsumers need devices that combine into their existence and replicate who they're. Fifty-seven % of millennials comprehend the laptop they desire as soon as they see it13, and eighty two % of this group consider the computer as a vital part of their life14. Taking sophisticated craftsmanship and performance cues from the HP Spectre top class portfolio, the brand new line-up of HP ENVY laptops and x360s features HP Command core for potent performance, refined design with a geometrical pattern for audio and thermal venting, and potent protection – including a biometric fingerprint reader, a privateness camera kill swap, and not obligatory HP bound View privacy screen15 to make sure reveal content isn’t uncovered.

    built with mobility in intellect, the HP ENVY 13 desktop features the newest Intel processors to energy as much as 19 hours of battery life16 (practically a forty one percent development versus the outdated generation). the new HP ENYY x360 13 points an impressive 2nd Gen AMD Ryzen™ processor and as much as 14.5 hours of battery life16 in a convertible kind ingredient. HP ENVY x360 15 presents versatility with either an AMD or the newest 8th Gen Intel® Core™ processor17, with as much as 13 hours of battery life16, a 28 p.c precise-bezel reduction versus the old technology, and an optional AMOLED monitor for magnificent colorings and brightness for looking or streaming video. The HP ENVY 17 desktop is built for performance with an eighth gen Intel® Core™ processor and NVIDIA® GeForce® MX250 pictures for productivity, creativity, and entertainment. The 17-inch gadget offers a much better monitor-to-body ratio for a more immersive viewing experience, thanks to the 45 percent appropriate bezel discount versus the old era.

    Pricing and Availability18

  • HP DaaS Proactive security carrier can be accessible in more than 50 nations global in April 2019. The Proactive security carrier with Aon choices should be purchasable within the US in April 2019, with extra geographies to be added later this year.
  • The HP ProBook 445R G6 and HP ProBook 455R G6 is expected to be accessible in June.
  • The HP ProDesk 405 G4 laptop Mini is expected to be purchasable in April for a starting cost of $499.
  • The HP Zoom Rooms options are anticipated to be attainable beginning in July. Pricing may be demonstrated closer to availability.
  • The HP Reverb digital truth Headset – seasoned version is anticipated to be attainable beginning in late-April. Pricing might be purchasable at a later date.
  • HP Premier Care solutions are provided in three programs. The fundamental Care equipment is purchasable now. The accelerated Care and more advantageous Care programs are expected to be purchasable in the second half of 2019.
  • The HP ENVY 13 computer is anticipated to be available in April via HP.com for a beginning cost of $899.99.
  • The HP ENVY x360 13 is expected to be accessible in April for a starting fee of $699.99.
  • The HP ENVY x360 15 with Intel processors is anticipated to be accessible in April by way of HP.com for a starting rate of $869.99, and additionally accessible via ultimate buy starting in may additionally.
  • The HP ENVY x360 15 with AMD processors is expected to be purchasable in April via HP.com for a starting fee of $799.99, and also accessible via highest quality purchase beginning in may.
  • The HP ENVY 17 desktop is anticipated to be attainable in April via HP.com for a starting fee of $899.ninety nine, and also obtainable through optimum buy starting in may additionally.
  • For greater advice on different bulletins taking location all through HP Reinvent, please seek advice from the HP Press core.

    About HP

    HP Inc. creates expertise that makes life superior for every person, in all places. through our product and repair portfolio of personal techniques, printers and 3D printing options, we engineer experiences that amaze. extra counsel about HP Inc. is attainable at http://www.hp.com.

    1 Ponemon Institute 2018 State of Endpoint security risk, October 2018.2 according to HP’s internal evaluation of isolation security services that present SaaS and managed features that include on-board and configure, compliance enforcement and malware possibility analytics. Most superior in response to hardware VM isolation enforced coverage with individual browser tabs and apps in isolation as of March 2019.3 initially accessible in the US best.4 customers of the HP DaaS Proactive protection service within the U.S. receive the Aon CyQu self-assessment and safety score. $0 retainer and one-hour free consultation protected with non-compulsory incident response functions from Aon. HP onboarding provider representatives will give guidance.5 “windows 7 conclusion of provider April 25, 2018”, 2018.6 The HP ProBook 445R G6 and HP ProBook 455R G6 should be obtainable in select nations.7 MIL STD 810G is not supposed to exhibit health for U.S. branch of defense contract necessities or for militia use. test effects aren't a guarantee of future performance under these examine circumstances. unintentional damage requires an not obligatory HP unintended hurt coverage Care Pack.8 The verify setup and outcomes are in keeping with Delta SNR (signal to Noise Ratio) from 3QUEST(three-fold great assessment of Speech in Telecommunications) look at various as defined in ETSI TS 103 106 specification with trying out performed in a instruct station heritage noise. results will fluctuate according to category and ecosystem.9 displays offered separately. help for up to three video outputs by means of two common video connectors and an non-compulsory third video port connector, which gives here choices: DisplayPort™ 1.2, HDMI 2.0, VGA or USB class-C™ with DisplayPort™ Output.10 Stillman, David, and Jonah Stillman. Gen Z @ Work: How the next generation Is reworking the workplace. Harper business, an Imprint of HarperCollins Publishers, 2017.eleven in response to HP's inside evaluation of integrated CoRC, two horizontal bendy CoRC positions, four' cable, modular snap-on components, and manufacturing unit pre-put in conferencing software as of March 12, 2019.12 in keeping with U.S. pricing.13 HP basic research, 2018.14 HP interior study. ENVY 5W, 2018.15 HP sure View integrated privacy monitor features in landscape orientation. non-compulsory purchasable on select FHD sure View panels.sixteen windows 10/ MM14 battery lifestyles will fluctuate counting on a lot of factors including product model, configuration, loaded purposes, features, use, wireless functionality, and vigour administration settings. The maximum skill of the battery will naturally decrease with time and usage. See www.bapco.com for extra details.17 Multi-core is designed to enhance performance of certain software items. now not all purchasers or application functions will always improvement from use of this know-how. efficiency and clock frequency will differ depending on software workload and your hardware and application configurations. Intel’s numbering, branding and/or naming isn't a measurement of higher performance.18 now not purchasable in all nations, pricing from HP.com, discipline to exchange with out note. See most useful buy for pricing particulars.

    AMD, the AMD Arrow emblem, Ryzen, Radeon and mixtures thereof, are trademarks of advanced Micro devices, Inc.

    ©Copyright 2019 HP building enterprise, L.P. The assistance contained herein is subject to exchange with out be aware. The handiest warranties for HP products and services are set forth in the specific guarantee statements accompanying such products and functions. Nothing herein should still be construed as constituting an extra guarantee. HP shall not be responsible for technical or editorial blunders or omissions contained herein.

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    HP Z24x G2

    HP Z24x G2

    HP promises to convey colour accuracy with push-button, colour-area selection on the $559 DreamColor Z24x G2. It offers a wide selection of digital cinema-category color gamuts, including one hundred percent insurance of sRGB and BT.709 and ninety nine percent of AdobeRGB. The included stand permits you to tilt, swivel, and modify the top of the panel. you could additionally rotate the video display via 90 degrees into portrait mode.

    See at HP keep

    HP DreamColor Z24x G2 tech specs category specificationsNative decisionWUXGA (1920 x 1200 @ 60 Hz) contrast ratio 1000:1 static; 5000000:1 dynamic Brightness 300 nits Pixel pitch 0.27 mm Response time 6 millisecond grey to grey monitor Tilt & Swivel diversityTilt: -5° to +20°Swivel: ±45°Pivot rotation: ninety°peak: one hundred twenty mm Dimensions 22 in. x 2.6 in. x 14.4 in. Weight 15.four lbs. in the box MonitorAC power cordDVI-D cableDisplayPort 1.2 cableUSB cable

    automatically after opening the field, i used to be upset to discover that none of the protected cables work with my laptops. Many laptops now have USB-C Thunderbolt three ports, so that you'll need to get a USB-C to DisplayPort cable from Amazon if you wish to use the monitor with such PCs.

    HP Z24x G2

    HP Z24x G2

    The Z24x looks very critical. or not it's big, heavy, and has plenty of bezels. The right side has five menu buttons and the power button. The menu is straightforward to navigate. The left facet of the screen has two USB ports whereas the leisure of the ports are purchasable below the screen.

    HP Z24x G2

    HP Z24x G2

    HP DreamColor Z24x G2 ports
  • Two DisplayPort 1.2
  • HDMI 1.4
  • DVI-D
  • five USB 3.0
  • Audio output
  • A manufacturing unit calibration report is also blanketed in the box, with the calibration date and device used, which is the Minolta CA-310. The document could be puzzling for the common users, but the goal viewers can be in a position to decipher it and find it beneficial.

    The Delta E values for AdobeRGB and sRGB on our calibration record have been 1.491 and 1.567. A Delta E value of 1 between two colors is regarded to be barely perceptible to the human eye. The greater the Delta E price, the greater the difference between both samples being compared. The low Delta E values for this video display are very first rate, which can be what the goal viewers is attempting to find.

    HP Z24x G2

    HP Z24x G2

    We fired up our Spyder5Pro calibration device and obtained ninety eight percent insurance of sRGB and 99 percent of AdobeRGB. This tool prices less than $150, whereas the calibration tool used in HP's included document expenses over $12,000!

    HP Z24x G2

    HP Z24x G2

    The HP DreamColor Z24x G2 monitor takes colour accuracy very seriously. it's the classification of computer screen that media, advertising, and creation homes use. besides the fact that children, there are other factors to believe when purchasing a monitor, reminiscent of resolution. The Z24x G2's native decision is 1900 x 1200. these interested in 2K or 4K resolution with DreamColor technology deserve to try the bigger models, the HP DreamColor Z27x and HP DreamColor Z31x, which charge about $1,300 and $four,000. If graphic resolution isn't a excessive priority, the DreamColor Z24x G2 display can be lots simpler for your pockets.

    HP DreamColor Z24x G2 display overview conclusion

    The HP DreamColor Z24x G2 monitor isn't for the typical user. There are numerous different superb-looking screens that does not prioritize color accuracy over different requisites. this is the classification of monitor that a production residence will buy 20 devices for their facility. unbiased creators who can find the money for this computer screen will also have peace of mind figuring out their content will appear as how they envision it.

    See at HP store

  • color-correct reveal.
  • Adjustable tilt, swivel, height, and rotation.
  • long lasting design.
  • Cons:
  • No USB-C port.
  • 2K or 4K option no longer attainable.
  • gigantic bezels.
  • four out of 5

    This post can also contain affiliate hyperlinks. See our disclosure policy for greater details.

    HP sticks an Android pill into a printer | killexams.com Real Questions and Pass4sure dumps

    In an abnormal gadget combo, Hewlett-Packard announced a printer with a detachable Android pill computer in it. The machine is part of the enterprise’s strategy of integrating the information superhighway into its core printing company.

    The printer is known as the HP Photosmart eStation All-in-One and should sell for $399; the Android tablet has a 7-inch monitor. It can be released later this yr. HP additionally referred to it has partnered with Barnes & Noble to provide the printer-tablet access to digital books, and with Yahoo to give the gadget entry to e-mail, messenger and different services. And it is working with Delta Air lines to make the printing of boarding passes easy from the printer-pill.

    Vyomesh Joshi, head of the printer division and one of the crucial internal candidates named as HP’s next chief executive, said that HP plans to sell 5 million internet-linked printers this yr and 20 million in 2011. past this 12 months, HP began inserting electronic mail addresses on printers so that users might electronic mail files for printing. At an experience these days, Joshi declined comment on HP’s search for a new CEO. His company money owed for a few fifth of HP’s $115 billion in earnings.

    The printer’s construction naturally predates the acquisition of Palm. otherwise, you might are expecting the printers to use the Palm WebOS cellular working gadget. HP has noted it plans to launch a windows-based slate computing device (its name for a tablet) this autumn, in addition to a WebOS tablet early next yr. purchasers may hence be somewhat at a loss for words over HP’s true tablet strategy. HP naturally believes that dissimilar operating methods will win sooner or later, and Joshi referred to HP might be equipment and working device agnostic.

    The Android tablet makes use of a Freescale i.MX51 processor and should run for 4 to 6 hours on a cost . The tablet raises a query. in case you take the pill out of the printer, will the printer still work? whereas connected to the printer, the pill will also be a digital photograph body. It uses Android edition 2.1. The device is only one of many printers HP announced for its fall line-up.

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    Delta - Selling HP Printing and Personal Systems Hardware

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    HP Challenges Facebook and HTC in the High-End VR Market | killexams.com real questions and Pass4sure dumps

    HP's (NYSE:HPQ) stock has tumbled about 20% over the past six months as the world's second-largest PC maker struggles with decelerating sales of its PCs and printers. However, HP has also been spreading out its bets by dabbling in other markets like virtual reality headsets. After all, global shipments of augmented and virtual reality headsets could rise from 8 million devices in 2018 to 52 million in 2022, according to CSS Insight.

    Looking to tap into that growth, HP recently unveiled the HP Reverb VR headset, a high-end Windows Mixed Reality headset that sports a 2160 x 2160 pixel resolution per eye (giving it a combined 4K resolution), a 114-degree field of view, and "inside-out" tracking, which tracks movements with a headset's own cameras instead of ones awkwardly placed around a room. That's all in a light 1.1-pound package.

    HP's Reverb VR headset.

    HP's Reverb VR headset. Image source: Microsoft.

    The consumer version costs $599, and the Pro version, which includes a cable for the HP Z VR backpack (its high-end, VR-ready PC in a backpack) and a fabric face mask, costs $649.

    The Reverb's 4K resolution and wide field of view allow it to offer high-fidelity VR experiences, and make it one of the most powerful headsets on the market today. However, it's pricier than HTC's (NASDAQOTH:HTCKF) Vive and Samsung's (NASDAQOTH:SSNLF) Odyssey+, which both cost about $500. Facebook's (NASDAQ:FB) original Oculus Rift costs $349, while HTC's professional-grade Vive Pro costs $1,000.

    HP is clearly trying to leverage its reputation as a top PC maker to challenge those high-end headset makers. But will the Reverb remain a niche device as the market pivots toward less-powerful stand-alone headsets like Facebook's Oculus Quest and Oculus Go?

    Why is HP launching a high-end VR headset?

    HP generates its revenue from two core businesses: personal systems (PCs and workstations) and printers. Here's how those businesses fared over the past five quarters in terms of year-over-year revenue growth.


    Q1 2018

    Q2 2018

    Q3 2018

    Q4 2018

    Q1 2019

    Personal systems


















    YOY revenue growth. Source: HP.

    HP's PC sales hit a brick wall last quarter due to tough competition, longer upgrade cycles, and a production bottleneck caused by an ongoing shortage of CPUs. Its printer division struggled with sluggish hardware demand in Europe, the Middle East, and Africa, and competition from producers of generic printer supplies.

    With both of its growth engines sputtering out, HP needs to launch new products to boost it sales. For the personal systems business, this means introducing new convertible Envy laptops and Omen gaming PCs, which are tethered to its Omen game streaming service.

    The introduction of the Reverb complements HP's gaming push, and the company might eventually bundle the headset with its Omen gaming PCs. However, two issues that hurt demand for the Rift, Vive, and other high-end headsets will likely prevent the Reverb from gaining much steam.

    First, its price tag is too high for mainstream consumers, who can buy a decent gaming PC, two gaming consoles, or a smartphone for the same price. Second, the Reverb needs to be tethered to a VR-ready gaming PC, which costs at least $500 and restricts a user's movements.

    The HP Z VR backpack.

    The HP Z VR backpack. Image source: HP.

    HP is trying to address the mobility issue by tethering the Reverb to its HP Z VR backpack, but the wearable PC costs $4,000, and the combination is much more cumbersome than stand-alone headsets like the Oculus Go or smartphone-based ones like Samsung's Gear VR.

    Therefore the Reverb and the HP Z VR backpack might be an acceptable setup for certain tech demos or enterprise uses, but it's highly doubtful that mainstream consumers will spend $4,600 to experience cutting edge VR content.

    It won't move the needle for HP

    The six best-selling VR headsets of 2018 were the PlayStation VR, Oculus Go, Oculus Rift, Gear VR, Vive, and Vive Focus, in that order, according to SuperData. However, none of those devices came close to surpassing a million shipments per quarter during the year.

    The strength of Sony's (NYSE:SNE) PSVR can be attributed to the fact that it had a built-in market with the PS4, and developers were eager to spice up their games with VR features. The success of the Oculus Go indicates that consumers want cheaper headsets that aren't tethered to PCs or smartphones. That's why SuperData expects the upcoming Oculus Quest, which upgrades the Go with a faster chip and positional tracking features (which track a user's position with internal cameras), to hit 1.3 million shipments in 2019.

    HP's focus on the high-end, PC-bound VR market restricts it to competing against Facebook, HTC, and Samsung in the much smaller niche market of affluent tech enthusiasts and enterprise customers. HP probably avoided a cheaper stand-alone device for two reasons: It lacks the mobile expertise, and a stand-alone device wouldn't complement its gaming PC efforts. However, it also means that the Reverb probably won't move the needle for HP's personal systems business anytime soon.


    HP Stock Looks Cheap, but I Won't Buy It for This Reason | killexams.com real questions and Pass4sure dumps

    There's no question that HP (NYSE: HPQ) looks like a value stock. The company expects to produce around $2.17 in per-share adjusted profits this year, putting the price-to-earnings ratio at a miserly 9. HP is valued at about $30 billion, just eight times its full-year guidance for free cash flow. That's the kind of depressed valuation that usually piques my interest.

    But I have no interest in investing in HP. The problem isn't how much money the company makes; it's how the company makes its money. HP sells PCs, printers, and supplies for those printers. PCs account for the bulk of revenue, but the printing business accounts for the bulk of profit.


    2018 Revenue

    2018 Operating Income

    2018 Operating Margin

    Personal systems

    $37.7 billion

    $1.41 billion



    $20.8 billion

    $3.32 billion


    Data source: HP.

    Within the printing segment, supplies account for about two-thirds of total revenue. HP follows a razor-and-blades model for its printing business. It sells low-margin hardware, which then needs a continuous supply of high-margin supplies. It's safe to say that most of HP's printing profits, and thus a majority of its overall profits, comes from selling printing supplies.

    A woman holding a sheet of paper near a printer.


    Image source: HP.

    A crack in the status quo

    This model has worked well for a long time. It's not that people weren't aware that printer ink is expensive -- it's part of the human condition to be annoyed at the high cost of printer ink. It's more that there were limited alternatives to buying supplies from anyone but HP, brick-and-mortar retailers, or HP resellers, especially on the commercial side.

    It's taken a while, but e-commerce seems to now be in the process of seriously disrupting HP's printing supplies cash cow. HP reported a 3% year-over-year decline in printing supplies sales in its fiscal first quarter. The company blamed commercial customers for increasingly shifting their purchases online, where HP has a lower market share. Customers have also become more price sensitive, which puts pressure on supply pricing.

    Third-party ink cartridges aren't new, but HP is finding it harder to compete. CEO Dion Weisler explained during the first-quarter earnings call that the growth of e-commerce has enabled aftermarket manufacturers to invest in better technology faster than in the past, which has led to "a faster deceleration in our aftermarket share on some newer platforms than we expected."

    I wouldn't be all that concerned if HP's pricing was only marginally higher than aftermarket alternatives. A commercial customer isn't going to switch away from HP for supplies if the savings are small, especially considering aftermarket supplies may or may not be of the same quality. But the savings aren't small. HP loses badly on pricing.

    How badly? Here's a list of current prices for a few ink and toner cartridges on both HP.com and inkjets.com, a third-party ink seller. The third-party cartridges are remanufactured but compatible with the stated models:





    OfficeJet Pro 8710

    952XL High Yield Black



    Color LaserJet Enterprise M553dn

    508X High Yield Yellow



    LaserJet Pro MFP M521DN

    55X High Yield Black



    Data sources: HP and inkjets.com.

    Pricing is just as lopsided on the consumer side. In fact, Costco offers ink cartridge refills at some locations starting at $6.99. That 952 XL Black cartridge in the preceding table can be refilled at Costco for $14.99.

    This doesn't strike me as a sustainable situation for HP.

    Not a bet I'm willing to make

    To invest in HP today, you have to be willing to bet that the status quo is going to remain largely intact for the foreseeable future. You have to believe that HP will continue to be able to charge inflated prices for printing supplies while not losing much market share.

    Story continues

    Given that HP is now admitting that online aftermarket sellers are a big problem, that's a leap of faith I just can't make. Winning back market share is going to require lower prices, and lower prices will lead to declining margins. That could hit HP's bottom line hard given its dependence on printing supplies.

    Maybe HP's high-margin supplies business is more sustainable than it looks to me right now. Maybe, if it does decline, it will decline slowly enough to be offset by growth elsewhere, like 3D printers.

    Or maybe HP's supplies business is finally being disrupted. Razor-and-blades business models don't seem to last forever. Just ask Gillette.

    HP was caught off guard by online competition in the first quarter. If this is the beginning of a reckoning in the printer supplies business, even a beaten-down valuation isn't enough for me to want to buy the stock.

    More From The Motley Fool

    Timothy Green has no position in any of the stocks mentioned. The Motley Fool recommends Costco Wholesale. The Motley Fool has a disclosure policy.

    HP PC business to merge with printing unit | killexams.com real questions and Pass4sure dumps

    Hewlett-Packard has revealed it will merge its Personal Systems Group (PSG) and Imaging and Printing Group (IPG) into a new Printing and Personal Systems Group, confirming rumours that began to circulate around the industry yesterday.

    Having failed in its aborted attempt to sell off its PC division last year, HP believes it makes more sense to combine the two mature business units into one structure so that they can approach customers and partners with an integrated offering.

    The firm claimed today that the combo would rationalise its go-to-market strategy, branding, supply chain and customer support, leading to enhanced customer experience and driving innovation.

    "This combination will bring together two businesses where HP has established global leadership," said CEO Meg Whitman.

    "By providing the best in customer-focused innovation and operational efficiency, we believe we will create a winning scenario for customers, partners and shareholders," she added.

    The merger is Meg Whitman's first major strategic gambit at the helm, and will certainly play well to the peanut gallery; last month Whitman said HP was "too complex and too slow" and pledged to demolish its siloed business structure.

    However in the wake of the announcement the heat will be on Whitman to work her magic in double quick time. Both IPG and PSG saw decling sales, profits and shipments during its most recent quarter, and hardware margins remain wafer thin.

    The merger will see IPG head Vyomesh Joshi stepping down from his role, with PSG boss Todd Bradley taking overall control of a unit that will be HP's largest in revenue terms by some considerable margin.

    At the same time as the headline announcement, HP revealed a number of other changes to its operational structure, which will see its Global Accounts Sales organisation join the newly-named HP Enterprise Group, which is to comprise of ESSN and Technology Services under David Donatelli.

    Marketing functions, meanwhile, are to be moved into a new unified organisation working across its business technology units under Marty Homlish, HP EVP and CMO. HP said this would allow for more effective cross-organisation marketing and branding activities.

    Other changes include the consolidation of HP's communications function, and some back office operations.

    HP gave no indication as to whether or not the restructuring would be accompanied by any role redundancies.

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    HP HP5-B04D Exam (Delta - Selling HP Printing and Personal Systems Hardware) Detailed Information


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