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February 2009, Week 3

HP3000-L@RAVEN.UTC.EDU

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From:
Roy Brown <[log in to unmask]>
Reply To:
Roy Brown <[log in to unmask]>
Date:
Wed, 18 Feb 2009 19:51:59 +0000
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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....

-- 
Roy Brown        'Have nothing in your houses that you do not know to be
Kelmscott Ltd     useful, or believe to be beautiful'  William Morris

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