I wrote regarding HP's stock price:

> 5.  The lack of ingenuity on HP's part to really innovate new products in
>  the printer arena.  Instead, they have introduced low-cost, low-margin
>  products for the home consumer market.  They should be leading the pack
in
>  developing new and innovative ideas instead of playing "me-too" in the
home
>  game.

Wirt replied...
> But as to the razor-thin margin inkjet printers, the posting
misunderstands
> the nature of the printers themselves. It's not the printers that matter.
In
> fact, I suspect HP would almost give them away for free if they could.
It's
> the ink cartridges that represent the profit -- and that profit is truly
> substantial.

But, Wirt, I do understand the nature of printers.  I do understand that
there is considerable markup in the inkjet cartridges.  Why else would there
be such a burgeoning market for remanufactured cartridges and for ink-refill
kits.  It is precisely this combination that has me thinking that HP is
addressing the wrong market.  How many people who have inkjet printers at
home honestly buy the manufacturer's cartridges?  My experience has been
that the average consumer will purchase whatever cartridge(s) fit their
particular printer for the least amount of money.  The story is a bit
different for most businesses because they want to ensure that their printer
stays under warranty and continues to function for their business needs.
So, if the average consumer buys a cheap printer that HP is beginning to
market at razor thin margins with the hope of selling cartridges with high
margins, but the consumer purchases off brand cartridges or ink refill kits
with the intent to save money... where is the profit margin for HP going to
come from?  Not from the consumer market...

On a related note:  Someone mentioned the Apollo printer line.  Here's my
take based on personal experience.  I purchased on at a fire sale price
($39) about 8 or 9 months ago.  It works great and uses standard HP
compatible cartridges (which you can find in off brands).  However, don't
expect to be able to use the printer for high-volume printing (more than
10-15 sheets / day).  It won't stand up.  My Apollo printer has now been
relegated to my son's computer and replaced with an HP-610CL printer.

Glenn J. Koster, Sr.
Quintessential School Systems
Developers of QWEBS (see www.qss.com)
QWEBS - The Next Generation : Coming soon to an HP e3000 near you