HP makes printing, imaging push 
 
Computer maker has invested more than $1.2 billion in printer and imaging line over three years.
June 25, 2002: 1:08 PM EDT 
 
NEW YORK (CNN/Money) - Kicking off what it called the single largest consumer product launch in the company's history, Hewlett-Packard Co. Tuesday announced plans to roll out more than 50 printers and digital imaging products between now and early 2003. 

The company, which completed its $18.7 billion buyout of Compaq Computer last month, made the announcement in conjunction with a flurry of new-product introductions and an aggressive marketing campaign at the TechXNY technology trade show taking place here this week. 

HP, whose printing and imaging business has been it most profitable, said it has spent more than $1.2 billion over the last three years in preparation for the product-line overhaul. 

"This announcement marks a defining moment in the evolution of HP's imaging and printing business," Carly Fiorina, HP's chairman and CEO, said in a statement. 

The company said it has invested $900 million in manufacturing, $125 million in research and development and $200 million in marketing. 

Shares of HP (HPQ: down $0.03 to $15.87, Research, Estimates) were trading modestly higher on the New York Stock Exchange early Tuesday afternoon. 

Many HP watchers have been anxious to hear specific plans for HP's printing and imaging business following its buyout of Compaq. Prior to its completion, opponents of the deal worried that by taking Compaq into its fold, the company would be increasing its exposure to the flagging desktop PC industry and compromising its strong position in printing and imaging. 

At the TechXNY trade show, also called PC Expo, HP introduced three low-cost color inkjet printers: the HP Deskjet 5550 priced at $149; HP Deskjet 3820 priced at $99; and HP Deskjet 3420 which will sell at $79. 

HP's display at the trade show was one of the largest and included a range of products such as servers, notebook computers and a prototype "Tablet PC." 

Shares of HP were pressured earlier in the session following a cautious report from brokerage Goldman Sachs, which cut its earnings estimates for the company during this year and next, citing continued weakness in information technology spending.  

http://money.cnn.com/2002/06/25/technology/hp/index.htm

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