With Lexmark Out of the Printer Business, HP . . .
Lexmark (LXK) is getting out of the inkjet printing business. It started leaving that business back in 2007, and it's finally ditching the whole thing.
That decision will save it $85 million a year. Its investors aren’t complaining.
Lexmark’s decision seems like the kind of thing that could be good news for a competitor like Hewlett-Packard (HPQ). It’s one fewer company out slashing prices. But HP’s investors did no backflips.
The reason: it’s just a sign of how bad the printing business is getting. As YCharts recently reported, HP’s printing and imaging business is in deep trouble. Revenues were basically flat last year, and last quarter earnings fell almost 29%.
Lexmark? It probably made the old dot matrix printer sitting in the back of your closet. Whatever. It doesn’t matter if HP gains market share if it’s in a business that’s disappearing.