27 August 2011

Now I understand why HP are giving up on Consumer Hardware...

Tricky choice - new ink cartridges for my old HP printer - £53
OR
A new printer/scanner/copier/fax with WIFI+USB and a built in (simple) web connection - for £39.

The HP DJ5550 will be 9 years old in September and it has started to make nasty clicky sounds and sometimes refuses to print unless you take the colour cartridge out (stressful when you really need to print that RyanAir boarding card)  so I parted with my £39


and what do I get inside the box...


Quite a lot of bits and bobs.  This printer was originally on sale for £99 but everywhere it now costs just £39.  Its a brilliant bit of kit, prints fast and high quality and HP support it on Linux - so installation took about a minute.


In the blurb that came with it they say "you can print wirelessly from your Iphone or Ipad" - and then it all makes sense.

HP have to sell me kit at a loss (I am told that a typical multifunction printer costs £200 to manufacture/market/distribute) and the only revenue stream they have is the ink - which from me won't be much at all.

BUT

Apple can sell their hardware at a nice profit and then have multiple and ongoing revenue streams through ITunes and Appstore and Cloud eventually even replacement of internal battery ($86 to fit a $5.99 battery).  At one point their rake off on newspaper subscriptions was going to be 50%.

So I can see why HP intend to "Do an IBM" - but are they too late?


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