Friday, August 3, 2012

HP gets out of the 3D printer market

HP gets out of the 3D printer market:
I can't say I am surprised to read the news from yesterday afternoon that HP will be ending its 3D printer agreement with Stratasys:
Stratasys, Inc. a leading manufacturer of 3D printers and production systems for prototyping and manufacturing applications, today announced that Stratasys and HP have agreed to discontinue their manufacturing and distribution agreement for 3D printers, effective at the end of 2012. (Source)
Whenever I'd get a chance to ask HP's printer division folks how the 3D printer sales were going, they'd look uncomfortable and then tell me it wasn't their role to talk about it. My conclusion: sales were not going well.
(Two point five half years ago, Stratasys lucked out by getting HP to sell its 3D printers. HP's stated plan was to start with a few resellers in some European countries, and then eventually go world-wide. Stratasys would make HP-branded printers, and then ride on HP's superior distribution coat tails to glorious sales.)
To HP, the plan made sense, I am sure. After all, they are the biggest 2D printer manufacturer in the world, and 3D printing is the natural follow-up. Except it's not. Notwithstanding the consumer-oriented efforts by 3D Systems and Makerbot, 3D printers are expensive, slow devices that are useful primarily for certain specialized, highly-competitive (running shoes and cell phones) or high-price (medical equipment) markets.
Chief financial officer Robert Gallagher of Stratsys confirms the reason:
...the relationship didn’t work financially for us. It’s as simple as that. Given the volumes and pricing within the channel, it simply was a financial decision. (Source)
Here's my prediction: HP will not announce its own design of 3D printers in January, 2013. (Mark it on your calendar and call me on it, if I am wrong.)





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