Tag: printer ink

HP revenue beats estimates

The maker of expensive printer ink, HP, reported a  quarterly revenue that thrashed analysts’ estimates,  thanks to growth in its systems business that sells notebooks and desktops and the acquisition of Samsung’s printer business.

The personal systems business, which accounts for more than 60 per cent of HP  total revenue, rose 11 percent to $10.06 billion, beating analysts’ average estimate of $9.78 billion.

The company had the second position in worldwide PC shipments in the third quarter with a 22.8 percent market share, down from 23.9 percent in the preceding quarter, according to research firm International

Epson abandons expensive printer ink rip-off model

history-of-print-16th-century-printing-companyAfter decades of flogging cheap printers that have expensive ink cartridges, Epson is coming up with a different business model.

From September the outfit will offer a new line of consumer printers in the US, each with enough ink to print at least 4,000 documents. When the well finally runs dry, customers can fill it with a bottle.

John Lang, Epson’s chief executive officer for North America, said the move is good news for the consumer.

“That anxiety and that fear of running out of ink—it’s amazing to me that that was so prevalent.”

Epson’s home and small business models come with enough ink to rip off only 220 or so documents. What’s more, they don’t play nice with third party cartridges, and the whole range of colours needs replacing when one runs dry.

The strategy of having a low initial price for the unit does a nice job of hooking consumers and the model provides a consistent and predictable stream of profit. The only real problem is that customers hate it with a passion normally only reserved for serial killers of children.

For years, Epson grappled with a number of large class actions from customers who noticed their cartridges still had ink in them when the printer demanded they be replaced. Epson argued that the reserve was needed to make a smooth transition, but in 2006 it settled the grievances, awarding customers a $45 credit per printer.

Now Epson plans to make its money on the front end. The cheapest of its five new printers starts at about $379, compared with the $60 required to get Epson’s current no frills model. And the company’s hoping to benefit from being the first mover on this front.

Lang thinks that in a few years, one quarter of printer revenue will be flowing into giant inkwell models, although it will continue to offer machines that take cartridges as well.

Lang, the Epson chief, says the company didn’t offer inkwell units sooner because it was afraid people would balk at the higher initial price. But actually Epson has been flogging similar versions for years in Asia and South America, territories where ink pirates are particularly aggressive.

Former HP boss “90 percent sure” of presidential bid

carlyfiorinaFormer HP boss the winsome (and lose some) Carly Fiorina said the chances she would run for the US presidency in 2016 were “higher than 90 percent” and that she would announce her plans in late April to early May.

Fiorina said she could not yet announce the bid because she was working to establish her team and put together what she described as “the right support” and financial resources.

Fiorina was seen as a divisive figure at HP. Her wielding of the corporate axe made staff scared of losing their jobs. It is also not clear if HP ever did that well from her massive buy out of Compaq which left HP as the world’s largest hardware maker just in time for the economic rut which gutted PC sales.

In 2005, Fiorina was forced to resign as chief executive officer and chair of HP following “differences with the board of directors about how to execute HP’s strategy.”She has frequently been ranked as one of the worst tech CEOs of all time, although we would suspect that at least one of those who followed her into the HP chair were a lot more apocalyptic [surely Apothelkayptic. Ed].

Potential Republican presidential candidates including former Florida Governor Jeb Bush, Wisconsin Governor Scott Walker, Florida Senator Marco Rubio, former Arkansas Governor Mike Huckabee and New Jersey Governor Chris Christie.

Texas Senator Ted Cruz became the first major figure from either political party to formally announce his 2016 presidential bid.

Among Democrats, Hillary Clinton is expected to be the front-runner for the nomination, although she has yet to formally announce her plans.