Hewlett-Packard Comments on Printer Market Pricing (HPQ 3Q05 Conf Call Quotes; LXK, DELL)

Includes: DELL, HPQ, LXK

In the conference call following Hewlett-Packard's 3Q05 (F4Q05) earnings report, HP CEO Mark Hurd commented on how HP plans to address the lower printer prices from Lexmark (and, implied, from Dell):

…on the pricing... I do hear a lot of commentary about pricing, but we're not trying to be the quote-unquote price leader in the marketplace. We have certain segments that are high-consumption segments that we target. We think we know what the premium should be relative to competition, and we work within those models to try to get to the best destination that we think makes sense.

So, I think overall, our view is that the pricing has got different factors in different parts of the market. We try to target where we take our price action... it isn't just relative to the competitor you named. There are several other competitors and several other segments... that we target as well.

And on opportunity in the commercial printing market:

companies that typically do a lot of printing in a community… typically have a high-end… analog press. Most of that analog printing base is beginning to move to digital… tens of thousands of these printers, just in the United States, in addition, another group of tens of thousands that sit in Europe and around the world… we want to bring that integrated proposition to those customers. And that includes not only the printer, the supplies, and the service …

(Quotes are from the CCBN StreetEvents transcript.)