Friday, May 27, 2005

HP and Snapfish

Taken from BusinessWeek:
After years of trying to boost short-term profits to keep Wall St. happy, the company has slashed printer prices in a margin-sapping crusade to take back market share. While painful, that should boost sales of its hugely profitable ink cartridges for years to come--including from shutterbugs who are willing to pay more to print a pic right now, rather than wait a few days for Fedex to deliver prints ordered online.
In the end, it's all about the ink, isn't it? Even the acquisition of a photo service is used to saturate the market with more inkjet cartridges.

The author, Peter Burrows, later says: " more-costly-than-crude printer ink". Haha, good one! You hear that? It's cheaper to drive an SUV than print your vacation photo!

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