According to today’s article from The Register, Michael Dell is planning on undercutting HP out of the printer cartridge market. Dell is beginning to look like the Wal-Mart of the P.C. world. By driving down costs to consumers this low, the competition is worried about going out of business. Dell recently allied with Lexmark to develop inkjet/printer consumables that are much less expensive compared to other companies equivalent product. In a market where these sources of profit accounts for almost half of total profit, companies like HP have a reason to worry.
This all makes me wonder, how is it that HP, Lexmark, and Canon all managed to charge so much for something so cheap? In retail stores like Staples, ink cartridge theft is one of the biggest theft items. I think that says something about the how much consumers value this ink. Without it, they would be lost.
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