HP Inc.
Company typePublic
IndustryInformation technology
PredecessorHewlett-Packard
FoundedJuly 2, 1939; 84 years ago (1939-07-02) as Hewlett-Packard, November 1, 2015; 8 years ago (2015-11-01)
Headquarters,
U.S.
Area served
Worldwide
Key people
Products
RevenueDecrease US$62.98 billion (2022)
Decrease US$4.68 billion (2022)
Decrease US$3.20 billion (2022)
Total assetsDecrease US$38.59 billion (2022)
Total equityDecrease US$−2.92 billion (2022)
Number of employees
58,000 (2022)
DivisionsHP Labs
SubsidiariesList of subsidiaries
Websitewww.hp.com
Footnotes / references
[1]

HP Inc. is an American multinational information technology company headquartered in Palo Alto, California, that develops personal computers (PCs), printers and related supplies, as well as 3D printing solutions. It was formed on November 1, 2015, as the legal successor of the original Hewlett-Packard after the company's enterprise product and business services divisions were spun off as a new publicly traded company, Hewlett Packard Enterprise.[2]

HP is listed on the New York Stock Exchange and is a constituent of the S&P 500 Index. It is the world's 2nd-largest personal computer vendor by unit sales as of January 2021, after Lenovo.[3] In the 2023 Fortune 500 list, HP is ranked 63rd-largest United States corporation by total revenue.[4]

History

Main article: Hewlett-Packard § History

Hewlett-Packard was founded in 1939 by Bill Hewlett and David Packard, who both graduated with degrees in electrical engineering from Stanford University in 1935. The company started off in the HP Garage in Palo Alto, California. On November 1, 2015, Hewlett-Packard was split into two companies. Its personal computer and printer businesses became HP Inc., while its enterprise business became Hewlett Packard Enterprise. The split was structured so that Hewlett-Packard changed its name to HP Inc. and spun off Hewlett Packard Enterprise as a new publicly traded company. HP Inc. retains Hewlett-Packard's pre-2015 stock price history and its former stock ticker symbol, HPQ, while Hewlett Packard Enterprise trades under its own symbol, HPE.[2][5]

As HP Inc.

In May 2016, HP introduced a new PC gaming sub-brand known as Omen (reusing trademarks associated with VoodooPC), including gaming laptops and desktops (with the latter offering options such as CPU water cooling and Nvidia's GTX 1080 graphics, and promoted as VR-ready), and other accessories (such as monitors) designed to cater to the market.[6]

In November 2017, HP acquired Samsung Electronics' printer division for $1.05 billion.[7]

In February 2021, HP announced its acquisition of Kingston's gaming division HyperX for $425 million.[8][9] The deal only includes computer peripherals branded as HyperX, not memory or storage. The sale was completed in June 2021.[10]

In February 2022, HP announced it had acquired the Edinburgh-based packaging development company, Choose Packaging, in an effort to strengthen its capabilities in the sustainable packaging vertical.[11][12]

In March 2022, HP announced the acquisition of the California-headquartered communications software and hardware provider Poly Inc. in an all-cash transaction. HP said the cash amount agreed was $40 per share, which implied a total enterprise value of $3.3bn, inclusive Poly's net debts.[13]

Attempted merger with Xerox

On November 5, 2019, The Wall Street Journal reported that print and digital document company Xerox was contemplating acquiring HP.[14] The company unanimously rejected two unsolicited offers, including a cash-and-stock offer at $22 per-share.[15][16] HP stated that there was "uncertainty regarding Xerox’s ability to raise the cash portion of the proposed consideration" (especially given that Xerox is a smaller company in terms of market cap than HP), and noted the company's aggressiveness.[16] On November 26, 2019, Xerox issued a public letter defending allegations by HP that its offer was "uncertain" and "highly conditional", and declared its intent to "engage directly with HP shareholders to solicit their support in urging the HP Board to do the right thing and pursue this compelling opportunity."[17]

Xerox stated in January 2020 that it would propose the replacement of HP's board of directors during its next shareholder meeting in April 2020. In a statement to TechCrunch, HP disclosed a belief that Xerox's bid was being "driven by" activist shareholder Carl Icahn.[18] Xerox raised its bid to $24 per-share in February 2020.[19]

On February 21, 2020, HP instituted a shareholder rights plan to fend off Xerox's pursuit of a hostile takeover. Four days later, HP announced that, if shareholders rejected the Xerox purchase, it planned on offering $16 billion in capital return between fiscal 2020 and 2022, including $8 billion in additional share buybacks and raising its "target long-term return of capital to 100% of free cash flow generation". HP criticized Xerox's bid as a "flawed value exchange" based on "overstated synergies".[20][21] On March 5, 2020, HP rejected an offer at $24 per-share.[22]

On March 31, 2020, Xerox rescinded its bid to buy HP Inc, citing that "the current global health crisis and resulting macroeconomic and market turmoil" had "created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc."[23]

Products and operations

HP develops personal computers (PCs), printers and related supplies, as well as 3D Printing solutions.[2][1]: 5–6 

In fiscal year 2022, total revenue of US$63 billion included US$29.2 billion from the sale of notebook computers, US$10.7 billion from the sale of desktop computers, US$11.8 billion from the sale of printer supplies, US$4.2 billion from the sale of commercial printers, and US$2.9 billion from the sale of consumer printers.[1]: 45–46  Over 65 percent of revenue in 2022 came from customers outside of the United States.[1]: 14 

Product lines

Alternative HP logo used on some computers since 2016

Desktop computers

Portable computers[24]

Printers[25]

Large Format Printers

Audio partner

In March 2015, HP announced that Bang & Olufsen would become the company's new premium audio partner for its computers and other devices. The partnership replaced the one with Beats Electronics which ended upon its acquisition by Apple Inc.[26]

Controversies

This article is about the company created in 2015. For information about controversies concerning the predecessor company, see Hewlett-Packard § Controversies.

Blocking third-party ink cartridges

In 2016, HP introduced firmware in its printers that disabled the printers if users used ink or toner cartridges which did not contain “new or reused HP chips or electronic circuitry.” As a result, HP faced scathing criticism (such as that from the Electronic Frontier Foundation[27]) and paid millions in class-action lawsuits, such as to certain customers in the US ($1.5 million[28]), Canada ($700,000 CAD[29]), Australia, and Europe ($1.350 million[30]), but without admitting wrongdoing. HP's stated that the firmware was intended to provide "the best consumer experience" and "protect" customers from "counterfeit and third-party ink cartridges that do not contain an original HP security chip and that infringe on our IP."[31]

In 2023, PC World reported that HP printers still prevent users from using third-party ink.[32]

Disabling all-in-one printers

In 2023, HP was sued over allegations that it intentionally designed its all-in-one printers not to perform scanning or faxing when they were low on ink.[33]

Loss of company archives under Keysight

A large part of Hewlett-Packard's historical company archives (consisting of over 100 boxes of correspondence and documents from the two founders) were acquired by Keysight Technologies at the time of its foundation in 2014.[34] These archives were completely lost when the 2017 Tubbs wildfire incinerated two buildings on the headquarters campus of Keysight in Santa Rosa, California.[34] A former HP employee who had previously been in charge of the archives commented that "a huge piece of American business history is gone", and Keysight disputed criticism that the archives had been inadequately protected.[34]

Xinjiang region

See also: Xinjiang internment camps and Uyghur genocide

In 2020, the Australian Strategic Policy Institute accused at least 82 major brands, including HP Inc, of being potentially connected to forced Uyghur labor in the Chinese Xinjiang province.[35]

In 2022, in response to the U.S. Uyghur Forced Labor Prevention Act, HP responded, "HP is committed to respecting human rights across our global supply chain and we prohibit the use of involuntary labor of any kind. HP also commits to respecting fundamental rights and freedoms defined in the United Nations (UN) Universal Declaration of Human Rights (UDHR) in an approach consistent with the UN Guiding Principles on Business and Human Rights (UNGPs) as outlined in our Human Rights Policy."[36][37]

Carbon footprint

HP reported Total CO2e emissions (Direct + Indirect) for the twelve months ending December 31, 2020, at 254 Kt (−34 /-11.8% y-o-y)[38] and plans to reduce emissions 60% by 2025 from a 2015 base year.[39] This science-based target is aligned with Paris Agreement to limit global warming to 1.5 °C above pre-industrial levels.[40]

According to a press release issued on April 20, 2021,[41] HP seeks to achieve net zero greenhouse gas emissions across the HP value chain by 2040, beginning with their Supplies business achieving carbon neutrality by 2030. "Climate change is a defining challenge of our generation that demands immediate action and investment," said Enrique Lores, HP Inc. President and CEO. "Now is a time for bold moves and ambitious goals that will protect our planet and create new sources of innovation and growth across the global economy. By driving toward net-zero carbon emissions across our entire value chain by 2040, product circularity and a forest positive framework, we will accelerate our progress and advance HP’s aspiration to become the world’s most sustainable and just technology company."[41]

See also

References

  1. ^ a b c d "HP Inc. Fiscal 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. December 6, 2022.
  2. ^ a b c Darrow, Barb (October 30, 2015). "Bye-bye HP, it's the end of an era". Fortune Magazine. Archived from the original on November 12, 2019. Retrieved November 1, 2015.
  3. ^ "Gartner Says Worldwide PC Shipments Grew 10.7% in Fourth Quarter of 2020 and 4.8% for the Year". Gartner. January 11, 2021. Archived from the original on January 25, 2021. Retrieved January 12, 2021.
  4. ^ "Fortune 500". Fortune. June 5, 2023. Retrieved October 23, 2023.
  5. ^ See company history section of HP Inc.'s information page at the NYSE Web site Archived June 9, 2019, at the Wayback Machine
  6. ^ Kastrenakes, Jacob (May 26, 2016). "HP launches new Omen line of gaming laptops, desktops, and accessories". The Verge. Archived from the original on February 28, 2020. Retrieved February 28, 2020.
  7. ^ Choudhury, Saheli Roy (November 1, 2017). "HP completes purchase of Samsung printer business". www.cnbc.com. Archived from the original on March 18, 2021. Retrieved December 22, 2018.
  8. ^ "HP Inc. to Acquire HyperX". HP Press Center. February 24, 2021. Archived from the original on June 9, 2021. Retrieved June 12, 2021.
  9. ^ "HP is buying gaming accessory brand HyperX for $425 million". The Verge. February 25, 2021. Retrieved August 12, 2022.
  10. ^ "HP Inc. Completes Acquisition of HyperX". HP Press Center. June 1, 2021. Archived from the original on June 10, 2021. Retrieved June 12, 2021.
  11. ^ "HP acquires plastic-free packaging company Choose Packaging". Packaging Gateway. February 3, 2022. Archived from the original on February 3, 2022. Retrieved February 3, 2022.
  12. ^ "HP Inc. Acquires Choose Packaging". press.hp.com. Archived from the original on February 3, 2022. Retrieved February 3, 2022.
  13. ^ Gowran, Leigh Mc (March 28, 2022). "HP acquires Poly for $3.3bn to strengthen hybrid work portfolio". Silicon Republic. Retrieved March 28, 2022.
  14. ^ Lombardo, Cara (November 6, 2019). "Xerox Considers Takeover Offer for HP". The Wall Street Journal. Archived from the original on February 28, 2020. Retrieved November 6, 2019.
  15. ^ Franck, Thomas (November 7, 2019). "Xerox offers to buy HP for $22, sources say, more than 30% higher than where it traded a month ago". CNBC. Archived from the original on February 28, 2020. Retrieved February 28, 2020.
  16. ^ a b "HP rejects Xerox again, but leaves door open for negotiation". TechCrunch. November 25, 2019. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  17. ^ "Xerox tells HP it will bring takeover bid directly to shareholders". TechCrunch. November 26, 2019. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  18. ^ "Xerox wants to replace HP board that rejected takeover bid". TechCrunch. January 23, 2020. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  19. ^ Sebastian, Dave (February 10, 2020). "Xerox Raises Its Bid to Acquire HP". Wall Street Journal. ISSN 0099-9660. Archived from the original on February 28, 2020. Retrieved February 10, 2020.
  20. ^ Armental, Maria (February 25, 2020). "HP to Buy Back $15 Billion in Stock to Battle Xerox Takeover Bid". Wall Street Journal. ISSN 0099-9660. Archived from the original on February 28, 2020. Retrieved February 28, 2020.
  21. ^ "HP offers its investors billions in shareholder returns to avoid a Xerox tie-up". TechCrunch. February 25, 2020. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  22. ^ Sebastian, Dave (March 5, 2020). "HP Rejects Xerox's Raised Takeover Offer". Wall Street Journal. ISSN 0099-9660. Archived from the original on March 7, 2020. Retrieved March 9, 2020.
  23. ^ "Xerox Provides Update on Proposal to Acquire HP" (Press release). Xerox. March 31, 2020. Archived from the original on April 4, 2020. Retrieved April 5, 2020.
  24. ^ Piltch, Avram; updated, Henry T. Casey last (February 16, 2018). "Which HP laptop is right for you?". LaptopMag. Retrieved October 18, 2023.
  25. ^ "What are the differences between the HP printers?". Coolblue.
  26. ^ "HP makes Bang & Olufsen its new audio partner". CNET. Archived from the original on February 26, 2016. Retrieved February 21, 2016.
  27. ^ Doctorow, Cory (September 26, 2016). "What HP Must Do to Make Amends for Its Self-Destructing Printers". Electronic Frontier Foundation. Retrieved May 16, 2023.
  28. ^ "HP Printer Firmware Case - Joseph Saveri Law Firm". www.saverilawfirm.com. April 25, 2019. Archived from the original on November 4, 2022. Retrieved August 4, 2023.
  29. ^ "Lex Group Attorneys / Avocats - Montreal | HP OfficeJet Printers – Dynamic Security / Non-HP Ink Cartridges – Canadian Class Action Settlement". April 24, 2019. Archived from the original on May 25, 2023. Retrieved August 4, 2023.
  30. ^ "HP and Euroconsumers settle on Dynamic Security | Euroconsumers". www.euroconsumers.org. Archived from the original on June 25, 2023. Retrieved August 4, 2023.
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  32. ^ "HP printers still block third-party ink. These models have a workaround". PCWorld. 2023.
  33. ^ "Lawsuit claiming HP all-in-one printers are defective can proceed". Reuters. August 11, 2023.
  34. ^ a b c Digitale, Robert (October 29, 2017). "HP historical archives destroyed in Santa Rosa fires". Santa Rosa Press Democrat. Retrieved June 3, 2023.
  35. ^ Xu, Vicky Xiuzhong; Cave, Danielle; Leibold, James; Munro, Kelsey; Ruser, Mathan (March 1, 2020). "'Re-education', forced labour and surveillance beyond Xinjiang". Australian Strategic Policy Institute. Retrieved April 5, 2022.
  36. ^ "Company responses regarding commitments to apply a single global standard aligned with Uyghur Forced Labor Prevention Act (UFLPA)". Business & Human Rights Resource Centre. September 14, 2022. Retrieved July 30, 2023.
  37. ^ "Company Response: HP responded". Business & Human Rights Resource Centre. October 12, 2022. Retrieved July 30, 2023.
  38. ^ "HP Inc.'s Sustainability Report for 2020Q4". Archived from the original on June 10, 2021. Alt URL Archived November 11, 2021, at the Wayback Machine
  39. ^ "HP Inc.'s Sustainability Report for 2020Q4". Archived from the original on June 10, 2021. Alt URL Archived November 11, 2021, at the Wayback Machine
  40. ^ "Science Based Targets". Archived from the original on November 11, 2021. Retrieved November 11, 2021.
  41. ^ a b "HP Inc. Announces Ambitious Climate Action Goals". press.hp.com. Retrieved April 7, 2022.

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