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 user 2010-03-08 at 2:09:20 pm Views: 27
  • #23834

    HP Photo Kiosks Replacing Kodak At Wal-Mart
    SAN FRANCISCO hp is pushing rival printer giant Eastman Kodak
    Co.  out of an important location: Wal-Mart Stores Inc.stores.Since last
    year, the retail giant has been quietly installing H-P “Prints in
    Minutes” photo booths, which customers use to make photo prints from
    their digital cameras, a Wal-Mart spokeswoman said.The H-P kiosk
    rollout, which Wal-Mart says will be completed by this summer, will
    dislodge existing photo booths made by Kodak, which has provided its
    kiosks to Wal-Mart since at least 2006.Wal-Mart has 8,416 retail units
    under various brand names in 15 countries.

    The battle over
    Wal-Mart is the latest development in a bitter face-off between the two
    printing giants. Executives at both companies have lobbed barbs at the
    other and disputed claims about their technology. Both covet Wal-Mart
    because the retailer’s huge reach means not only the placement of lots
    of printer kiosks but also continued revenue from the ink, toner and
    paper the photo booths require for operation.”These kiosks stay
    installed for nine or 10 years,” H-P Chief Executive Mark Hurd told
    investors at a conference in San Francisco on Tuesday morning. H-P gets
    “100% supplies connect,” he said, referring to the sales of the
    additional printing products.

    An H-P spokeswoman didn’t return
    phone calls seeking additional comment. A Kodak spokesman said
    Wal-Mart’s decision “is in no way a reflection on the quality of our

    The Wal-Mart deal will likely help H-P as it endeavors
    to turn around its printer division. During its first-quarter earnings
    last month, H-P said its printer division reported a 4% jump in revenue
    to $6.2 billion, a performance that exceeded expectations.On Tuesday,
    H-P shares fell 0.8% to $51.12, while Kodak shares lost 0.8% to $5.92.
    Wal-Mart fell nearly 0.6% to $53.59.

    The Wal-Mart deal comes as
    the H-P and Kodak exchange cutting comments sparked by Kodak’s claims
    its printers can dramatically cut printing costs. Kodak has been
    reengineering itself since the digital photography boomeroded its
    traditional photographic film and equipment business.”Shame on your
    tactics,” Kodak Chief Marketing Officer Jeffrey Hayzlett said in a
    message posted on micro-blogging site Twitter. Hayzlett says H-P
    undercuts rivals by drastically lowering printer prices, then profits by
    keeping the price of ink refills artificially high.”You have a fight
    you can’t possibly win,” tweeted Angela LoSasso, the head of social
    media strategy for H-P’s imaging and printing group.