Hewlett Packard has decided to bet on the 72-foot long digital printing presses dubbed Web presses. The company is believed to have embraced this approach in order to bring drastic improvement in its balance sheet.
The chief executive of HP, Meg Whitman, has decided that during the first year of her tenure she will be focusing in rebuilding HP's depleted balance sheet. However, there is a hurdle to be crossed, Hewlett Packard's printing division which is the company's one of the most profit making division is facing some hard times.
The printing division has been contributing almost above half of HP's $7.1 billion annual profits. But, last year sales of this printing division fell down to $25.8 billion due to increasing reliance on digital formats by consumers as well as office workers which in turn led to a decline in operational profits by 10 per cent to $4 billion, reported The Wall Street Journal.
The company has decided to focus on Web presses to avert this situation. HP has already invested above $1 billion on research as well as development of this technology since 2008.
The machines costs somewhere between $1 million to $2 million and they are aimed towards commercial printers which turn out direct mails, books as well as other materials reports San Francisco Business Times.