HP OFFERS CHEAPER CTGS IN INDIA & CHINA

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Date: Monday May 29, 2006 11:43:00 am
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    INDIA:Relief on the way from ink cartridge angst
    (OVIOUSLY
    SINCE THEY CANNOT STOP COUNTERFEITING IN THESE COUNTRIES,THEY MIGH AS
    WELL OFFER A CHEAPER CARTRIDGE FOR THOSE MARKETS.)

    Chinese are being offered a cheaper but `original’ option
    Bangalore
    : “Pound for pound, forget gold and diamonds. There’s nothing more
    valuable on earth, than an ink jet cartridge,” an editor of an
    international printing industry journal said recently.”Caviar cost
    less,” embittered customers have been known to rue – after waking up to
    the real costs of owning a colour ink jet printer, which can be had
    less than $70 or Rs. 3000.

    Unique economics
    It
    is a great bargain – but wait till the initial black and colour
    cartridges run dry. That is when one understands the unique economics
    of the budget computer printer business.Original cartridges from the
    major ink jet printer suppliers in India tend to have as little as 15
    millilitres of ink – for a price that can range from Rs. 750 to Rs.
    2000 depending on the model.It is big business: the global digital
    imaging supplies market is worth over $100 billion today, says Lyra
    Research, a U.S.-based printing industry analyst, and of this ink jet
    cartridges account for 32 per cent.11 trillion pages in 2005 Ironically
    the digital revolution has not reduced the use of paper – only
    increased it to 11 trillion pages in 2005.Unsurprisingly, the ink jet
    market has seen a large alternative source developing: the business of
    re-manufactured cartridges from third party sources or – more commonly
    in India – a small neighbourhood cartridge filling service, which
    typically charges Rs. 250-Rs. 500 for the refill.

    A price to pay
    However,
    there is always a price to pay: The May 2006 issue of Hard Copy
    Supplies journal features a report by Lyra, based on detailed testing
    by Wilhelm Imaging Research, that image permanence of photos printed
    with refilled and re-manufactured cartridges is far inferior to those
    printed with original cartridges for Canon, Epson and HP printers –
    which happen to be three of the top selling models in India.But when a
    new colour cartridge costs nearly Rs. 2000 and a black one, around Rs.
    1000, many customers still go for the refilling route because they can
    afford nothing better.
    Many Indian users have found that refilled
    cartridges often run out very fast or do not work at all. All leading
    printer makers have built some `smartness’ into their cartridges –
    ostensibly to warn users when cartridges are about to dry up. In some
    cases, the chip that does this, has to be reset upon refilling.

    `Draft’ mode
    In
    a special briefing for The Hindu , Hewlett Packard’s Singapore-based
    vice-president for the supplies business of the company’s Imaging and
    Printing Group in Asia Pacific/Japan, John Solomon, revealed that its
    research labs had developed a new black ink cartridge called `Simple
    Black’ to address what it has found to be the widest application of
    consumer ink jets: monochrome documents printed using the economical
    `draft’ mode of its printers.

    “Simple Black” for India
    “We
    introduced the `Simple Black’ in China, with great success and by the
    end of this year we plan to offer it in India, our other big market in
    Asia, where customers are very price conscious,” Mr. Solomon said. It
    will be priced at around Rs. 500 – which will make it only a little
    costlier than a refilled or third party cartridge, but about half what
    an original `black’ for a HP printer costs today.

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