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Hewlett-Packard Company Message Board

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  • hoonie_k hoonie_k Dec 18, 2001 6:41 PM Flag

    Great Printers

    Two-thirds of HP's profits come from their lucrative printer and imaging business... HP dominates this market -- they sell 2 printers for every printer that each competitor sells. In addition, for every printer they sell, you can imagine how many printer cartridges are also sold over the lifetime of the printer. The margins on the cartridges are substantial. Merging/acquiring another PC business (eg, compaq) will undoubtedly dilute these profits and reduce overall shareholder value because of the low profit margins in the PC business. Looking at the bottomline, a HP-CPQ merger doesn't make that much sense for shareholders. Big isn't necessarily better.

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    • <<Big isn't necessarily better.>>

      Oh sure, easy for you to say. Name something small, other than waist size or weight, that most people actually prefer? ; )

      I do agree with some of your points, it's just time to give someone else a hard time.

 
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