*NEWS*WAL-MART TO SELL KODAK PRINTERS

[Anonymous]

Wal-Mart to sell Kodak inkjets
September , 2007— This could be the beginning of the end of the so-called paperless society.
In
a move that could generate reams of hard-copied documents and
photographs in homes across America, Eastman Kodak Co. announced Monday
that its most affordable inkjet printer is now available at 2,600
Wal-Mart stores.The move to sell the EasyShare 5100 All-in-One Printer
at the nation’s largest retailer also included a $20 cut in price on
the printer to $129.99 and a limited promotional offer to include three
five-color replacement ink cartridges with the sale.Kodak hopes to
create a new market of computer and digital-camera users who won’t
think twice about hitting the print command, said company spokesman
Dave Lanzillo.”Consumers have explicitly told us that the real barrier
to printing is the high cost of ink,” Lanzillo said. “We’re changing
that model by making inkjet printers easy, affordable, accessible and,
now with Wal-Mart, widely available. We’re changing consumer behavior
by enabling them to print as much as they want to.”Kodak broke into the
$45 billion inkjet printer market in February with the introduction of
three models. The EasyShare 5300 sells for $199, while the 5500 sells
for $299.With printer prices starting under $50, the Easy- Share
occupies a price point at the middle of the market. But Kodak is hoping
a technology that allows it to sell ink at lower cost will attract
buyers.

All three printers use black-ink cartridges that sell
for $9.99 and five-color cartridges that sell for $14.99, prices that
Kodak says can cut consumers’ printing costs by up to 50 percent.
Hewlett-Packard Co., the printer industry leader, disputes that
claim.Kodak’s move into Wal-Mart more than doubles the U.S. shelf space
for the EasyShare 5100, which had been available only at the 742-store
Best Buy chain. Bestbuy.com on Monday listed the EasyShare 5100 at
$149.99.Wal-Mart spokeswoman Marisa Bluestone said the EasyShare 5100
fits well with the company’s business plan.”At Wal-Mart, we are always
looking to provide our customers more value for their every need, and
this new Kodak printer is an example of that,” she said.Kodak’s stock
closed Monday at $26.66, down 71 cents. But with two other recent news
events at Kodak, it was unclear what factors were affecting the
movement.Kodak also announced Monday that IBM has agreed to provide
hardware and software support services for Kodak picture kiosks in six
South American countries.And Sunday, the company said it has reached an
agreement that allows Ricoh Americas Corp. to sell several Kodak
commercial printing products.Larry Jamieson, an imaging industry
analyst for Lyra Research of Newtonville, Mass., said the Wal-Mart
placement should eventually have a positive influence on Kodak’s
stock.”As soon as you say ‘Kodak and Wal-Mart,’ it should have a good
effect,” he said. “I would think Wall Street would see that as a
positive. But that’s logical and that’s never something I associate
with Wall Street.”The move signals Kodak’s commitment to the inkjet
printer market, Jamieson said, noting that Kodak will have to ramp up
production to fill the Wal-Mart orders. But he also said the $20 price
cut moves the EasyShare 5100 toward the low end of the printer
spectrum, where buyers tend to be more frugal with their printing
decisions.And by giving away three ink cartridges —enough to last many
users two or more years — it could be a long time before Kodak sees a
return on its investment, Jamieson said.Still, Wal-Mart’s position atop
the retail world should help Kodak position itself as an inkjet printer
company, he said.”Even if you connect with a few of these people, it’s
a plus,” Jamieson said. “Is it an offensive strategy or a defensive
strategy? I think it’s a little bit of both.” 

[Author]

September 11, 2007 at 10:33 AM