A story published on the Canadian new service CBC has commented on how Kodak has announced a shift in its inkjet printing strategy for the small desktop printer market, lowering the price of inkjet cartridges while bumping up the price of printers — a move expected to 'disrupt the market,' according to one analyst.
The company announced on Wednesday (19th September 2007) a new line of printers that will be priced at between $130 and $330, while their cartridges will be priced at between $12 and $18. The strategy is a departure from conventional printer pricing, in which consumers pay less — sometimes as low as $40 — for printers and upwards of $60 for cartridges.
Kodak's swing toward cheaper ink is a bold, competitive move, said Michelle Warren, a senior analyst with the market research group Info-Tech.
"Because what Kodak is essentially trying to do is disrupt the market and [encourage] individuals to print more versus storing on an electronic device — they actually want us to print more — their message is going to have to be transferred to the retail sales team," she said.
"I think they're not priming themselves to compete against the $40 printer, they're priming themselves to compete in a specific segment," Warren said, noting she expected the company to also tout its paper products in conjunction with the printers.
Rival inkjet manufacturers, including Hewlett-Packard and Epson, will be monitoring Kodak's strategy carefully, Warren said, but she qualified that Kodak won't overturn the market immediately.
"I think a vendor such as an HP or an Epson is really going to evaluate how Kodak is received before they decide to lower their prices on the supply," she said.
CBC
www.cbc.ca
