HP takes up Kodak challenge

Eastman Kodak Co. is getting some company in the marketplace for low-cost printer inks.

Hewlett-Packard Co. this week unveiled a new strategy for selling and labeling ink cartridges for its consumer inkjet printers that will make it easier to pick the correct model. It also plans to price ink as low as $14.99.
The strategy is designed to make it easier and cheaper for consumers to print, HP officials said.While HP denied any connection, the move comes about 2½ months after Kodak launched its ambitious line of all-in-one home printers that promise consumers savings of 50 percent or more on their printing costs.
Kodak's cartridges sell for $9.99 for a black ink tank and $14.99 for a five-color cartridge.Analysts say the cutthroat market for inkjet printing supplies may be entering an even more combative period as competitors battle each other and lower-priced cartridges from resellers and aftermarket suppliers. There's $50 billion a year at stake worldwide in the market for printers and supplies.
And those competitive dynamics will impact Kodak, which hopes the printer line will become a strong source of revenue as Rochester's second-largest employer continues on its journey of transformation from a film to a digital company.

read David Tyler's full article at http://www.rochesterdandc.com/apps/pbcs.dll/article?AID=/20070428/BUSINESS/704280324

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