HP CEO just let slip a major issue with its printing strategy - and it's
going to cost you

Date:
Mon, 22 Jan 2024 15:00:20 +0000

Description:
Apparently, HP makes a loss on selling its printers but recuperates this when you subscribe to Instant Ink.

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HP CEO Enrique Lores has acknowledged the companys ambition to transform the printing experience into a subscription model.

The revelation, in a recent CNBC interview, came amid a class-action lawsuit against the company relating to its printer firmware updates, which were shipped as security fixes but were later found to introduce printer blocking when using third-party cartridges.

The interview also reveals the companys direction, with Lores indicating that other products, including PCs, should also come with a subscription model. HP really wants you to subscribe to ink, and more

Subscription models have been proven to drive revenue by keeping customers more loyal for longer. The CNBC interview saw Lores confirm that the companys printers are not profitable as one-time purchases, and that HP makes an undisclosed loss on many models.

The profit comes later on from Instant Ink subscriptions. Lores even alluded to the fact that the company wishes to get rid of unprofitable customers who do not subscribe.

Lores also defended the companys actions, emphasizing the importance of protecting the companys IP embedded in HPs inks and printers. He revealed
that viruses can be shared between cartridge and printer, and then to the network and beyond when using dodgy replacements.

HPs CEOs statements seem to align with the companys broader strategy and
other similar statements weve heard in recent months. Lores thoughts echo those of CFO Marie Myers, who last year emphasized the companys big subscription push.

While HP defends its actions as a necessity for protecting IP and ensuring customer safety, part of the legal action discusses the significantly higher cost associated with genuine HP ink compared with third-party counterparts.

If HP were to go down the subscription route for its other products, surely this would add further complexities and enrage even more customers later on down the line. More from TechRadar Pro Protect your devices with the best firewalls Need an upgrade? Here are the best inkjet printers HP is being sued again over blocking third-party ink



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Link to news story: https://www.techradar.com/pro/hp-ceo-just-let-slip-a-major-issue-with-its-prin ting-strategy-and-its-going-to-cost-you


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