Analysts Question Sense Of HP Merger

2012-03-23 08:32:31

Published on 2012-03-23 08:32:31

Analysts have questioned the decision of ink giant Hewlett Packard (HP) to merge its printer and PC divisions, which the company claims will save money and streamline it.

The company has claimed that the decisions will help to drive profitable growth and encouraged hardware sales for the entire company, although leading industry analysts have questioned whether significant costs can be made.

Despite claims that the merger will allow for further reinvestment, Garner Distinguished Analyst Mark Fabbi says he doesn't quite see where the big difference will be made.

"I don't see anything in today's announcement that will change the fact that HP is less than the sum of their parts," he said.

"Moving the deck chairs around isn't enough."

Instead, Mr Fabbi suggested that HP should be looking to lead discussions on IT as well as thinking about how best to use its software acquisitions from 2011.

According to market intelligence firm IDC, printer ink sales are expected to grow one per cent to two per cent in the next few years.

Posted by Johnny McMaster.

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