HP wants to get rid of unprofitable printer customers

Posted on Friday, Nov 27 2020 @ 11:33 CET by Thomas De Maesschalck
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As you probably know, for printer makers the money isn't in selling printers but in selling the ink that gets consumed by the printer. HP CEO Enrique Lores has now revealed that the company will take even more actions to optimize the business by getting rid of unprofitable customers.

Basically, if you buy a HP printer and then buy third-party ink, HP doesn't want your business. The company's new devices either lock down the type of ink you can use, or you'll have to pay more upfront for a HP printer that accepts cartridges that aren't sold by HP. Lores has indicated this is a strategy HP will continue to follow.
The solution, as outlined 13 months ago at HP's Securities Analyst Meeting, was to raise the upfront price of printer hardware for customers who didn't want to use HP-branded supplies. And for those who did, to create hardware that locked down the use of non-HP ink or toner.

This week, when talking to analysts about Q4 financial results, Lores alluded to the current state of play. "We continue to evolve our print business models with our drive towards services and a rebalance of profitability between hardware and supply."
More details at The Register.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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