Words from The OEM. Opportunity or Threat?


“Very soon you will be able to buy your printer as part of the subscription… “

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Change is brewing at HP, again. In an enlightening and thrill-packed Wall Street Journal interview, CEO Enrique Lores speaks to a familiar direction for HP.

First up is HP’s pivot from a transactional business model to a contract-based one – enter subscription plans. The goal is simple yet ambitious: foster deeper ties with customers by offering comprehensive services rather than standalone products. We know about ink, toner, and paper, but the grand plan includes printers and PCs, too.

“I really think this is a super exciting opportunity that is going to really help us and the industry to redesign what a PC is and what people are going to be able to do with a PC. In the next 12 to 24 months, there is going to be a new generation of PCs that will have the capability to run locally AI applications that are really going to transform how many people work.

Enrique Lores interview, June 2023, WSJ

Then, there’s AI – the game-changer that Lores believes will revolutionize PCs in the next two years. The focus is on PCs capable of running local AI applications, which could transform how we work, though the path to regulation is admittedly tricky.

On the manufacturing front, Lores envisions a shift from the prevalent globalized model to regional hubs. This means moving production from Asia to North America and potentially Europe, enhancing supply chain resilience post-pandemic.

In all of this, Lores emphasizes the importance of agility. He wants HP to be as nimble and adaptable as a young startup, ready to pivot as needed.

I’ve said it before, “…if HP gets a cold, we all contract Zombie-flu…” far from a canary in the coal mine, watching Big Blue is an indicator of both threats and promises. For me, the brightest path is lined with AI-Compatible devices. You should be establishing relationships today to cash in on the PC revolution of tomorrow. Good articles here and here.

– Greg Walters, Head Writer