https://www.theregister.com/2023/12/04/hp_printer_lockin/ # # Sign in / up The Register(r) -- Biting the hand that feeds IT # # # Topics Security Security All SecurityCyber-crimePatchesResearchCSO (X) Off-Prem Off-Prem All Off-PremEdge + IoTChannelPaaS + IaaSSaaS (X) On-Prem On-Prem All On-PremSystemsStorageNetworksHPCPersonal TechCxOPublic Sector (X) Software Software All SoftwareAI + MLApplicationsDatabasesDevOpsOSesVirtualization (X) Offbeat Offbeat All OffbeatDebatesColumnistsScienceGeek's GuideBOFHLegalBootnotesSite NewsAbout Us (X) Special Features Special Features All Special Features Cloud Infrastructure Week Cybersecurity Month Blackhat and DEF CON Sysadmin Month The Reg in Space Emerging Clean Energy Tech Week Spotlight on RSA Energy Efficient Datacenters Vendor Voice Vendor Voice Vendor Voice All Vendor VoiceAmazon Web Services (AWS) Business TransformationDDN Google Cloud Data TransformationGoogle Cloud InfrastructureGoogle WorkspaceHewlett Packard Enterprise: AI & ML solutionsHewlett Packard Enterprise: Edge-to-Cloud PlatformIntel vProVMware (X) Resources Resources Whitepapers Webinars & Events Newsletters [personalte] Personal Tech 76 comment bubble on white HP exec says quiet part out loud when it comes to locking in print customers 76 comment bubble on white Funny how marketing messages change depending on the audience icon Paul Kunert Mon 4 Dec 2023 // 10:15 UTC # HP is squeezing more margin out of print customers, the result of a multi-year strategy to convert unprofitable business into something more lucrative, and says its subscription model is "locking" in people. Someone holding some HP ink cartridges HP CEO talks up HP-ink-only print hardware and higher upfront costs for machines that use other cartridges READ MORE Tech vendors - software, hardware, and cloud services - generally avoid terms that suggest they're perhaps in some way pinning down customers in a strategic sales hold. But as Marie Myers, chief financial officer at HP, was this week talking to the UBS Global Technology conference, in front of investors, the thrust of the message was geared toward the audience. "We absolutely see when you move a customer from that pure transactional model ... whether it's Instant Ink, plus adding on that paper, we sort of see a 20 percent uplift on the value of that customer because you're locking that person, committing to a longer-term relationship." Instant Ink is a subscription in which ink or toner cartridges are dispatched when needed, with customers paying for plans that start at $0.99 and run to $25.99 per month. As of May last year, HP had more than 11 million subscribers to the service. Since then it has banked double-digit percentage figures on the revenues front. [personalte] By pre-pandemic 2019, HP had grown weary of third-party cartridge makers stealing its supplies business. It pledged to charge more upfront for certain printer hardware ("rebalance the system profitability, capturing more profit upfront"). * AWS staffer shows off the workplace that used to be a prison * Gartner: Stop worrying and love the cloud, with all its outages and lock-in * Oracle, Microsoft barely compete for a quarter of their US Federal contracts * Apple perfects vendor lock-in with home security kit HP also set in motion new subscriptions, and launched Smart Tank hardware filled with a pre-defined amount of ink/toner. These now account for 60 percent of total shipments. Myers told the UBS Conference she was "really proud" that HP could "raise the range on our print margins" based on "bold moves and shifting models." [personalte] HP's moves are designed to up its bottom line in a world that's printing fewer pages. HP's Printing division margin has risen from 14.8 percent in fiscal 2020 to 18.9 percent in fiscal 2023. An old industry factoid from 2003 was that HP ink cost seven times more than a bottle of 1985 Dom Perignon. HP isn't alone in these sorts of comparisons - Epson was called out by Which? a couple years back. [personalte] Something tells us that Myers' audience at the UBS gig might not view the cost of printing the same way as the rest of us. (r) Get our Tech Resources # Share More about * HP Inc * HP Instant Ink * Printer More like these x More about * HP Inc * HP Instant Ink * Printer Broader topics * Hardware More about # Share 76 comment bubble on white COMMENTS More about * HP Inc * HP Instant Ink * Printer More like these x More about * HP Inc * HP Instant Ink * Printer Broader topics * Hardware TIP US OFF Send us news --------------------------------------------------------------------- Other stories you might like HP printer software turns up uninvited on Windows systems No escape from bloat, even without relevant hardware attached OSes30 Nov 2023 | 56 HP chief throws about AI fairy dust in hopes of reviving slumbering PC giant What is double of 15% sales shrinkage? Personal Tech22 Nov 2023 | 6 HP sued over use of forfeited 401(k) retirement contributions If IT giant loses this lawsuit, it might just upset every plan in America On-Prem16 Nov 2023 | 46 DBaaS takes the trouble out of cloud databases How open-source databases operating in the cloud can deliver performance, flexibility, scalability and cost savings Sponsored Feature [personalte] 3D printer purchases could require background checks under proposed law Bill in New York aims to stop spread of ghost guns, but fails to address existing kit or private sales Legal17 Oct 2023 | 37 IDC: AI is a solution for a PC industry with a sales problem Articulating use cases? Erm, yes but customers are captivated Personal Tech10 Oct 2023 | 13 When is a PC an AI PC? Nobody seems to know or wants to tell Canalys EMEA Forum HP and Lenovo developing machines with LLMs - maybe it'll be in the price? AI + ML5 Oct 2023 | 36 The printout may be dead but that beast of a print queue lives on Opinion A queue gone mad leads to surprising results for 3D printing - but still no regulation Personal Tech30 Aug 2023 | 31 Judge denies HP's plea to throw out all-in-one printer lockdown lawsuit AiO devices won't scan or fax without ink, and plaintiffs say IT giant illegally withheld that info from buyers Personal Tech11 Aug 2023 | 102 HP reveals bonkers $5k foldable tablet/laptop/desktop There's a weird one-and-a-half screen laptop mode, too Personal Tech15 Sep 2023 | 27 HP blames discounted PCs and China chill for Q3 revenue drop At least the cost-cutting scissors are still sharp Personal Tech30 Aug 2023 | 3 Should leaders place bets on new PCs or generative AI? Here's a hint: Leaders are putting laptop orders on ice Personal Tech11 Jul 2023 | 17 The Register icon Biting the hand that feeds IT About Us* * Contact us * Advertise with us * Who we are Our Websites* * The Next Platform * DevClass * Blocks and Files Your Privacy* * Cookies Policy * Privacy Policy * T's & C's * Do not sell my personal information Situation Publishing Copyright. All rights reserved (c) 1998-2023 no-js