Monday, May 15, 2006

HP a Retail Electronics Powerhouse?

Hmm this is very interesting information that I was not aware of at all:

H-P (HPQ) , a brand synonymous with the enterprise computing and printing industries, has quietly become the leading technology supplier to the nation's largest electronics stores. In 2005 the company claimed more than 13% of the roughly $81 billion that Americans spent on technology products, according to research firm NPD Techworld in Port Washington, N.Y.

"It's a new market, but we look at it more like an IT (information technology) market," said Jan-Luc Blakborn, H-P's director of digital entertainment for North America. "Not everyone can play in this market, but we have the (technological) background to deliver products that can fill the needs and wants of consumers."

They are also looking to expand their share of the digital TV market as well:

Palo Alto, Calif.-based H-P is looking to expand its share even further. In addition to its long-time strength in printing, imaging and PCs, and its moves into the retail photo kiosk market, the company is stocking several of its newest digital TVs on the shelves at Best Buy Co. Inc. (BBY)

H-P's retail television expansion "has the potential to more than triple H-P's addressable market for consumer products," said Harry Blount, an analyst with Lehman Bros.
H-P claims about $30 million in annual revenue from TV sales -- just a sliver of the $26.7 billion in sales its so-called personal-systems division reported last year. However, Blount reckons the Best Buy partnership alone could boost H-P's TV yearly sales to more than $200 million.


Will people really buy HP branded TVs? I guess they can serve the dual role of a TV and a computer monitor. Hmm, they might really have something here since all they really need is to rebrand a current monitor to look more like a TV and less like a computer monitor. That means retrofitting the stand, changing the casing, and maybe changing the buttons on the front. It would seem like a fairly easy thing to do. Whatever the case I just like the sound of $30 million sales turning into $200 million.

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