HP abandons “expensive printer ink” model

@ 2019/10/11
Moves to “expensive printer” model instead

The maker of expensive printer ink HP has decided that its model has run out of steam.

For decades HP has made a fortune flogging cheap printers in the confidence that users would have to spend a fortune on hugely expensive ink cartridges.

However now rival makers luring customers with cheaper ink and toner cartridges, the outfit has finally admitted it is not working any more.

HP's incoming printer president, Tuan Tran, told the Securities Analysts Meeting the company needed to "rebalance the system profitability, capturing more profit up front" from the printer hardware.

One of the ways HP is attempting to safeguard its supplies revenues is by shifting to Smart Tank and Neverstop printers that come fully loaded with an estimated two years' worth of ink or toner.

This is for customers that want to buy the printer and supplies from HP exclusively.

"The customers will get a model that delivers a more secure, more reliable, higher quality and sustainable print experience", said Tran.

Another thing HP is thinking of is to make customers can pay for the full value of HP printers upfront, gaining the flexibility for supplies.

“This is like buying an unlocked mobile phone and then choosing your wireless carrier. In these cases, customers can enjoy HP's superior printing hardware but take a risk if they choose alternative suppliers.

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