This article is about the 2015 successor of Hewlett-Packard. For the predecessor company, see Hewlett-Packard. For other uses, see HP (disambiguation).
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 shareholderCarl 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]
In March 2015, HP announced that Bang & Olufsen would become the company's new premium audio partner for its computers and other devices. This replaced the partnership with Beats Electronics that ended upon being acquired by Apple Inc. in 2014.[24]
In fiscal year 2023, total revenue of US$54 billion included US$24.7 billion from the sale of notebook computers, US$10.9 billion from the sale of desktop computers, US$11.4 billion from the sale of printer supplies, US$4.2 billion from the sale of commercial printers, and US$2.4 billion from the sale of consumer printers.[1]: 40–41 Over 65 percent of revenue in 2022 came from customers outside of the United States.[1]: 13
HP's first quarter fiscal 2024 net revenue was $13.2 billion, representing a 4.4% decrease (4.9% in constant currency) year-over-year.[25][26] HP's strong operating activities in the first quarter of fiscal 2024 generated $121 million in net cash. The company also reported a positive free cash flow of $25 million for the quarter.[27][28][29] Free cash flow includes $121 million in net cash from operating activities, with adjustments of $62 million for net lease investments and $158 million for property, plant, and equipment investments.[30]
In May 2024, HP announced that its PC models would adopt a new branding nomenclature, with most of its consumer computer models (besides Omen) folded under the "Omni" brand, with "OmniBook" (a revival of Hewlett-Packard's old OmniBook brand that was originally defunct in 2002 after acquiring Compaq that year), "OmniStudio", and "OmniDesk" models.[31][32]
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[33]) and paid millions in class-action lawsuits, such as to certain customers in the US ($1.5 million[34]), Canada ($700,000 CAD[35]), Australia, and Europe ($1.350 million[36]), 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."[37]
In 2023, PC World reported that HP printers still prevent users from using third-party ink.[38]
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.[39]
Disabling ink cartridges
In February 2019, How-To Geek published an article reporting that HP remotely disabled ink cartridges when the user cancels their Instant Ink subscription.[40]
HP reported Total CO2e emissions (Direct + Indirect) for the twelve months ending December 31, 2020, at 254 Kt (−34 /-11.8% y-o-y)[45] and plans to reduce emissions 60% by 2025 from a 2015 base year.[46] This science-based target is aligned with Paris Agreement to limit global warming to 1.5 °C above pre-industrial levels.[47]
According to a press release issued on April 20, 2021,[48] 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."[48]
Sports sponsorships
In February 2024 HP signed a 3-year sleeve sponsorship deal with Real Madrid, being the first sleeve sponsor of the club's 121-year history.[49]
In April 2024, it was announced HP had signed a "multi-year" deal to become the title sponsor for the Scuderia Ferrari Formula One team, extending to the team's F1 Academy and esports programmes. The HP logo will feature on both the team's 2024 car, the Ferrari SF-24, and the race suits of drivers Carlos Sainz Jr. and Charles Leclerc. Alongside the branding deal, HP will supply the team with services "ranging from computers, printers and other hardware to conferencing technology."[50]