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There's a Storm Ahead for HP's Printer Business

February 21, 2012

When the troubled IT giant Hewlett-Packard, reports its quarterly results tomorrow, most analysts expect it to come through and meet, and perhaps even beat some already-diminished expectations.

Yet HP is facing a significant problem in a key market: Printing. HP's Imaging and Printing Group, or IPG accounts for roughly 20 percent of HP's revenue, making it a bigger business by revenue than the enterprise and server, storage and networking business.

As it does with most printer vendors, the business model of IPG works like this: HP sells a printer, more often than

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