> -----Original Message-----
> From: HP-3000 Systems Discussion [mailto:[log in to unmask]] On Behalf Of Roy
> Brown
> Sent: Wednesday, February 18, 2009 11:52 AM
> To: [log in to unmask]
> Subject: Re: OT: the amazing Mark Hurd.
> 
> In message <[log in to unmask]>, Craig Lalley
> <[log in to unmask]> writes
> >Forbes has an interesting article on HP
> >
> >http://www.forbes.com/2009/02/16/hp-earnings-computers-technology-enterp
> >rise-tech_0217_hp.html?partner=daily_newsletter
> >
> >This one sentence is pretty amazing no matter how you read it.
> >
> >"The neatest trick: While sales of printers are sagging, HP's margins
> >could actually benefit from a sales slump, since most of its printers
> >are sold at a loss, BernsteinResearch analyst Toni Sacconaghi wrote in
> >a note to investors Friday."
> >
> >-Craig
> 
> Think razors and razor blades.
> 
> A dip in printer sales means a dip in ink refill sales six months or so
> down the line. And with ink costing more than Chanel No 5, that's where
> the profit is - or rather won't be, if they don't shift those printers
> now.
> 
> Unless HP are relying on those 'lost' buyers being existing HP printer
> users extending the life of existing printers....
> 

The "neatest trick"'s working fine.  Simply reduce prices further, sell more printers, then sell more ink to both homesteaders and new recruits.  Don't you love the HP Way?

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