zlacker

>>pjmlp+(OP)
Here is the actual quote in full: "Every time a customer buys a printer, it's an investment for us. We are investing in that customer, and if that customer doesn't print enough or doesn't use our supplies, it's a bad investment." - HP CEO

Basically, every printer is a loss leader. And recurring supplies is their way to recoup losses.

I think this is an annoying business model. The world has changed. Culture has changed. This may have been great in the 90s. It does not work anymore. (Remember those internet connection companies that gave free junky computers in exchange for internet contracts?)

>>nashas+4E
Has the world changed though? I'm pretty sure all the other consumer printer companies still run off this model. If HP was to break ranks and start charging (effectively) a premium for their printers by selling them for a profit, would consumers actually buy them over the cheaper alternatives that are still subsidized by ink sales? The state of the ad-subsidized LCD TV market suggests that customers either don't know or don't care about what they're trading for lower prices - so I suspect that selling printers at a profit would be a net loss of revenue for HP.