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Thursday, November 08, 2007
HP to Seek New Business Model for HP-branded Cameras

HP today announced that it will seek an alternative business model for its HP-branded cameras and shift resources toward its Print 2.0 growth 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.

This shift in strategy is intended to enable HP to accelerate its investment in Print 2.0 initiatives. These include furthering HP's position in home photo printing and online photo services, while accelerating the company's retail photo-finishing business.

Announced in May 2007, the company's Print 2.0 strategy focuses on three areas: delivering a digital printing platform that increases print speeds and lowers the cost of printing for high-volume commercial markets; making it easier to print from the web; and, extending HP's digital content creation and publishing platforms across all customer segments.

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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