HP To Accept New Ink Cartridge System

From my previous post (or maybe from some other source) you already know that inkjet cartridges market is estimated $32 billion. 21% of that market belongs to third-party companies that produce compatible generic cartridges and refills, and the number is growing, judging by success stories of refilling businesses I hear.

Cartridge refilling and remanufacturing enterprises are so successful because they offer customers a cheap and quality alternative to buying costly OEM supplies. Current business model of most inkjet printers makers is to sell cheap hardware, but expensive ink supplies; this is what they make money on. However, this is what customers don’t seem to like.

In effort to win back a share of that 21%, HP try a new approach. Hewlett Packard is changing the way of delivery of its ink cartridges: a new three color-coded categories and a lowered, two-level pricing system. Within 2007 year, HP will introduce inkjet printers designed to be used with new cartridge system.

Labeled with blue, green, and red color coding, standard, value, and specialty cartridges will be introduced in various retail stores as well as online, reports ChannelInsider.com. Besides, the new cartridges will contain a greater volume of ink. All this is to offer customers “a simplified shopping experience, more choice, and greater value”, the company said.

Seems like, first, HP recognized the fact that every one has different printing needs, second, it feel threatened by third-party cartridges manufacturers, that sell HP-compatible ink cartridges for much less.