Is Supplies Revenue Nearing Saturation for HP?

The company’s supplies business is far more profitable than its Personal Systems segment. HP’s supplies revenue fell from $4.14 billion in the fiscal third quarter of 2011 to $4 billion in the fiscal third quarter of 2012, $3.84 billion in the fiscal third quarter of 2013, $3.66 billion in the fiscal third quarter of 2014, $3.46 billion in the fiscal third quarter of 2015, and $2.87 billion in the fiscal third quarter of 2016. HP’s supplies revenue then began to stabilize toward the end of fiscal 2016, which resulted in its reporting revenue growth of close to 10% in the fiscal third quarter of 2017.