HP TAKES A CUE FROM APPLE TO SPUR WEAK PRINTER SALES

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Date: Tuesday June 23, 2009 12:02:37 pm
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    http://online.wsj.com/article/BT-CO-20090622-715140.html
    To Spur Printer Sales, H-P Takes A Cue From Apple
    HP teams with Google, Fandango for Web-connected touch-screen printer
     SAN
    FRANCISCO -Hewlett Packard Co.’s  printing division seems to have taken
    a cue from the Apple Inc. iPhone.H-P on Monday introduced a
    Web-connected home printer, the $399 Photosmart Premium, which uses its
    Internet connection to download software programs or “apps” in order to
    add new customizable printing features.Gannett Co. Inc.’s USA Today
    newspaper, Google Inc.and DreamWorks Animation will be among the first
    companies to provide apps for the printer later this year, when the
    Web-based “HP Apps Studio” opens, H-P announced.If the set-up sounds
    familiar, it is. Cupertino, Calif.-based Apple perfected a similar
    business tactic, in which it distributes software to support sales of a
    device. The latest incarnation is the Apple iPhone smartphone and its
    companion online App Store, which 50,000-plus programs to download.

    The
    move is the latest by H-P to right its struggling printing division,
    which provides about 21% of H-P’s revenue. The division’s fiscal
    second-quarter revenue declined 23% from a year ago to $5.9 billion on
    plummeting printer sales.Vyometh Joshi, H-P executive vice president,
    called the new printer, and its app store “an entirely new printing
    platform.””By giving people access to the content they want at the
    touch of a finger, we are driving a significant shift in how people
    will be printing in the future,” he added.

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