The following was written by Louella Fernandes
Printing remains a bright spot for HP, with pre-tax profit growing to 8.5% in 2013, reaching nearly $4 billion. HP is looking to drive further growth in its printing business, which currently represents 22% of its overall revenue. While hardware sales were up by 5% in Q1 2014, supplies revenue dropped by 5%.
One reason why it is seeing its supplies revenue is falling is a result of lower consumer print volumes, as well as the continued threat from the use of aftermarket (third party) consumables. HP is looking to address these challenges, initially for its consumer inkjet printers through Instant Ink.
This subscription programme, already available in the US, is currently being extensively piloted in the UK with general roll out through May 2014 and will subsequently be expanded across Europe.
What is HP Instant Ink?
Similar to a mobile phone plan, the subscription model for Instant Ink delivers the benefits of predictable costs, automated delivery of large capacity ink cartridges and a simple process for recycling used cartridges.
As HP puts more ink in each large instant ink cartridges fewer ink cartridges are manufactured and shipped, and empty cartridges are returned to HP for recycling in pre-paid envelopes.
Customers enrol in the Instant Ink programme when they purchase an eligible printer and enrolment card. Customers choose from three monthly plans based on the predicted number of pages per month.
Click here to read the rest of the article on louellafernandes.com
About the Author
With over 20 years’ experience in the print industry, Louella Fernandes is a respected and globally recognised analyst focusing on the evolution of business printing. Louella is currently Associate Director for Print Services and Solutions at Quocirca.
