HP Inc.

HP Inc. is an American multinational information technology company headquartered in Palo Alto, California, that develops personal computers (PCs), printers and related supplies, as well as 3D printing solutions.

This article is about the 2015 successor of Hewlett-Packard. For the predecessor company, see Hewlett-Packard. For other uses, see HP (disambiguation).

HP Inc.
TypePublic
IndustryComputer hardware
PredecessorHewlett-Packard
FoundedJanuary 1, 1939 (1939-01-01) (as Hewlett-Packard)
November 1, 2015 (2015-11-01)[1] (as HP Inc.)
Founders
Headquarters
Palo Alto, California
,
United States
Area served
Worldwide
Key people
Products
Revenue US$63.49 billion (2021)[2]
US$5.30 billion (2021)[2]
US$6.50 billion (2020)[2]
Total assets US$38.61 billion (2021)[2]
Total equity US$−1.65 billion (2021)[2]
Number of employees
51,000 (2021)[2]
Divisions
  • HP Labs
SubsidiariesList of subsidiaries
Websitehp.com
Footnotes / references
[2]

It was formed on November 1, 2015, renamed from the personal computer and printer divisions of the original Hewlett-Packard Company, with that company's enterprise product and business services divisions becoming 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.[3][4]

HP is listed on the New York Stock Exchange and is a constituent of the S&P 500 Index. It is the world's 2nd largest personal computer vendor by unit sales as of January 2021, after Lenovo.[5] In the 2018 Fortune 500 list, HP is ranked 58th largest United States corporation by total revenue.[6]

History
Main article: Hewlett-Packard § History

HP Inc. was formerly known as Hewlett-Packard. 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 renamed to HP Inc. and the company enterprise business was spun off and renamed to Hewlett Packard Enterprise.[4]

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.[7]

In November 2017, HP acquired Samsung Electronics' printer division for $1.05 billion.[8]

In February 2021, HP announced its acquisition of Kingston's gaming division HyperX for $425 million.[9][10] The deal only includes computer peripherals branded as HyperX, not memory or storage. The sale was completed in June 2021.[11]

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.[12][13]

In March 2022, HP announced the acquisition of the California-headquartered communications software and hardware provider Poly 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.[14]

Attempted merger with Xerox

On November 5, 2019, The Wall Street Journal reported that print and digital document company Xerox was contemplating acquiring HP.[15] The company unanimously rejected two unsolicited offers, including a cash-and-stock offer at $22 per-share.[16][17] 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.[17] 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."[18]

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 shareholder Carl Icahn.[19] Xerox raised its bid to $24 per-share in February 2020.[20]

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".[21][22] On March 5, 2020, HP rejected an offer at $24 per-share.[23]

On March 31, 2020, Xerox rescinded its bid to buy HP Inc, issuing in a statement, "The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP Inc."[24]

Current operations

HP develops personal computers (PCs), printers and related supplies, as well as 3D Printing solutions.[4][1]

In 2021, total revenue of US$63.5 billion included US$30.5 billion from the sale of notebook computers, US$9.53 billion from the sale of desktop computers, US$12.7 billion from the sale of printer supplies, US$4.45 billion from the sale of commercial printers, and US$3.18 billion from the sale of consumer printers.[1]

Approximately 65% of revenue in 2021 came from customers outside of the United States.[25]

Audio partner

In March 2015, HP announced that Bang & Olufsen would become the company's new premium audio partner for its computers and other devices. The partnership replaced the one with Beats Electronics which ended upon its acquisition by Apple Inc.[26]

Controversies
This article is about the company created in 2015. For information about controversies concerning the predecessor company, see Hewlett-Packard § Controversies.

Xinjiang region
See also: Xinjiang internment camps and Uyghur genocide

In 2020, the Australian Strategic Policy Institute accused at least 82 major brands, including HP Inc, of being connected to forced Uyghur labor in the Chinese Xinjiang province.[27]

Carbon footprint

HP reported Total CO2e emissions (Direct + Indirect) for the twelve months ending December 31, 2020, at 254 Kt (−34 /-11.8% y-o-y)[28] and plans to reduce emissions 60% by 2025 from a 2015 base year.[29] This science-based target is aligned with Paris Agreement to limit global warming to 1.5°C above pre-industrial levels.[30]

According to a press release issued on April 20, 2021,[31] 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."[31]

See also
  • HP Labs
  • List of largest technology companies by revenue

References
  1. "HP Inc 2016 Form 10-K Annual Report". Archived from the original on March 2, 2017. Retrieved March 20, 2017.
  2. "HP Inc. Announces Fourth Quarter and Fiscal Year 2021 Results" (PDF). sec.gov. U.S. Securities and Exchange Commission. December 9, 2021. Retrieved February 22, 2022.
  3. See company history section of HP Inc.'s information page at the NYSE Web site Archived June 9, 2019, at the Wayback Machine
  4. Darrow, Barb (October 30, 2015). "Bye-bye HP, it's the end of an era". Fortune Magazine. Archived from the original on November 12, 2019. Retrieved November 1, 2015.
  5. "Gartner Says Worldwide PC Shipments Grew 10.7% in Fourth Quarter of 2020 and 4.8% for the Year". Gartner. January 11, 2021. Archived from the original on January 25, 2021. Retrieved January 12, 2021.
  6. "Fortune 500 Companies 2018: Who Made the List". Fortune. Archived from the original on January 15, 2019. Retrieved November 10, 2018.
  7. Kastrenakes, Jacob (May 26, 2016). "HP launches new Omen line of gaming laptops, desktops, and accessories". The Verge. Archived from the original on February 28, 2020. Retrieved February 28, 2020.
  8. Choudhury, Saheli Roy (November 1, 2017). "HP completes purchase of Samsung printer business". www.cnbc.com. Archived from the original on March 18, 2021. Retrieved December 22, 2018.
  9. "HP Inc. to Acquire HyperX". HP Press Center. February 24, 2021. Archived from the original on June 9, 2021. Retrieved June 12, 2021.
  10. "HP acquires gaming brand HyperX for about $425 million! Kingston's DRAM and SSDs for gaming will continue". funglr Games. February 25, 2021. Retrieved August 12, 2022.{{cite news}}: CS1 maint: url-status (link)
  11. "HP Inc. Completes Acquisition of HyperX". HP Press Center. June 1, 2021. Archived from the original on June 10, 2021. Retrieved June 12, 2021.
  12. "HP acquires plastic-free packaging company Choose Packaging". Packaging Gateway. February 3, 2022. Archived from the original on February 3, 2022. Retrieved February 3, 2022.
  13. "HP Inc. Acquires Choose Packaging". press.hp.com. Archived from the original on February 3, 2022. Retrieved February 3, 2022.
  14. Gowran, Leigh Mc (March 28, 2022). "HP acquires Poly for $3.3bn to strengthen hybrid work portfolio". Silicon Republic. Retrieved March 28, 2022.
  15. Lombardo, Cara (November 6, 2019). "Xerox Considers Takeover Offer for HP". The Wall Street Journal. Archived from the original on February 28, 2020. Retrieved November 6, 2019.
  16. Franck, Thomas (November 7, 2019). "Xerox offers to buy HP for $22, sources say, more than 30% higher than where it traded a month ago". CNBC. Archived from the original on February 28, 2020. Retrieved February 28, 2020.
  17. "HP rejects Xerox again, but leaves door open for negotiation". TechCrunch. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  18. "Xerox tells HP it will bring takeover bid directly to shareholders". TechCrunch. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  19. "Xerox wants to replace HP board that rejected takeover bid". TechCrunch. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  20. Sebastian, Dave (February 10, 2020). "Xerox Raises Its Bid to Acquire HP". Wall Street Journal. ISSN 0099-9660. Archived from the original on February 28, 2020. Retrieved February 10, 2020.
  21. Armental, Maria (February 25, 2020). "HP to Buy Back $15 Billion in Stock to Battle Xerox Takeover Bid". Wall Street Journal. ISSN 0099-9660. Archived from the original on February 28, 2020. Retrieved February 28, 2020.
  22. "HP offers its investors billions in shareholder returns to avoid a Xerox tie-up". TechCrunch. Archived from the original on October 9, 2020. Retrieved February 28, 2020.
  23. Sebastian, Dave (March 5, 2020). "HP Rejects Xerox's Raised Takeover Offer". Wall Street Journal. ISSN 0099-9660. Archived from the original on March 7, 2020. Retrieved March 9, 2020.
  24. "Xerox Provides Update on Proposal to Acquire HP" (Press release). Xerox. March 31, 2020. Archived from the original on April 4, 2020. Retrieved April 5, 2020.
  25. "HP Inc. Q4 FY21 Earnings Announcement" (PDF). HP. Retrieved February 22, 2022.
  26. "HP makes Bang & Olufsen its new audio partner". CNET. Archived from the original on February 26, 2016. Retrieved February 21, 2016.
  27. Xu, Vicky Xiuzhong; Cave, Danielle; Leibold, James; Munro, Kelsey; Ruser, Mathan (March 1, 2020). "'Re-education', forced labour and surveillance beyond Xinjiang". Australian Strategic Policy Institute. Retrieved April 5, 2022.{{cite web}}: CS1 maint: url-status (link)
  28. "HP Inc.'s Sustainability Report for 2020Q4". Archived from the original on June 10, 2021. Alt URL Archived November 11, 2021, at the Wayback Machine
  29. "HP Inc.'s Sustainability Report for 2020Q4". Archived from the original on June 10, 2021. [Climate%20Goal,Total%20CO2e%20emissions%20(Scope%201%20%2b%20Scope%202)/2020Q4 Alt URL] Archived November 11, 2021, at the Wayback Machine
  30. "Science Based Targets". Archived from the original on November 11, 2021. Retrieved November 11, 2021.
  31. "HP Inc. Announces Ambitious Climate Action Goals". press.hp.com. Retrieved April 7, 2022.
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