In today’s world of ever changing technology it is hard to even begin to explain how HP has come out on top as the world’s premier printer provider. Often it bewilders most people absent the knowledge nor history of going on’s through back door deals, incentives and marketing schemes to gobble up market share.
For me it is fairly easy being exposed to the industry for over 22 years and the results are astounding when you sit back and look at the evolution of the industry. I have always enjoyed the gurilla style marketing that takes place in the corporate world. I also enjoy handing out a good ole butt whipping from time to time in the same bowl. I have always found that small businesses can react and return larger corporations advertising campaigns faster because of the politics that are involved at the corporate levels. But to listen to someone tell the tale of why HP Toner Cartridges are used more widely than any other cartridge on the market is almost unimaginable. I assure you that before the end of this article you will be happy, outraged and even sold on how all of this has come about.
At the inception of the laser printer there was a fight from the get go between 2 companies, IBM and Xerox for first to market printers. Yes there were other companies like Epson, Minolta and others but not so much a force in the laser industry at that time. For IBM it was to get customers to use laser printers and their supplies for Xerox there name was based on copiers and they wanted to add laser printers to most of their customers. IBM basically was a computing machine company while Xerox had built its name on copiers. Advantage IBM. So Xerox went on to advance smaller more personal copiers while IBM started pumping out laser printers.
Arising quickly problems had to be overcome . First and foremost IBM got into several lawsuits involving smaller remanufacturers making cartridges for their printers. This was not taken lightly by IBM and ultimately ended up in the supreme court where IBM lost and the Magnusm Moss act was passed whereas companies could not merchandise link. (Sell a printer and require a buyer to only use their cartridge) .
Frustrated with the whole product line and the loss in court IBM sold its printer division to the newcomer Lexmark. Lexmark was the first company to introduce the lockout chip. When remanufacturers started duplicating the chips and making the Lexmark cartridges once again Lexmark sued the whole industry in a $13 million copyright infringement lawsuit.
Enter HP who also was in the process of making the computer chips and installing them on their cartridges. But HP was doing this process not to lock out the competitor but instead was using the technology to help notify to the consumer of the toner levels and other to the point(p) information about the cartridge. Stepping into the remanufacturing industry arena only as an advisor capacity HP assisted and partnered, to a certain extent with the legalities and issues being pursued by Lexmark in the court of law. The result was Lexmark lost it’s case in court and the remanufacturers agreed to promote HP printers and supplies. The beginning for HP and the demise of Lexmark. At the time all of this was taking place HP had accumulated a market share of about 70% and Lexmark had 8% and everyone else was fighting for their share of the unexpended 22%.
And so it goes each manufaturer has developed a design of printer that utilizes specific cartridges. Lexmark has upped the lockout characteristic making it nearly unacceptable to duplicate. IBM has Lexmark build their machines while Brother has seperated their cartridges into 2 parts the toner cartridge and the drum cartridge increasing its supplies and yielding higher profits. Samsung, well cheap would be an understatement for the machine whiles supplies are costly and cut a deal exclusively with Office Depot the #2 office supply store in the US. Without through planning Dell jumped in bed with Lexmark and has struggled since with the complications and cost of their so called free printer with the purchase of a computer system. HP well they went to the top when they found a way to get Staples the worlds leading(a) office supply store to agree to remove their remanufactured cartridges in exchange for all the profit of HP printer sales along with rebate payments from HP on every machine they sell and to accumulate all of the discharge cartridges they can in an effort to prevent remanufacturers from having the ability to compete. Oh yea and Staples has HP Toner available just about cheaper than any other vendor is allowed to sell it at. (By contract from HP or they will remove you as a vendor.)
All in all HP is the most prefered printer for a reason. It’s easier to setup and use. They have by far the best english speaking support faculty and the technology and availability is by far the best. Cartridges are readily available most anywhere. They promote recycling but try not to foster remanufacturing. (loss of profit is not acceptable) As of this article 85% of all printers in use today are HP and as a result for the first time in HP’s history the printer division specifically drew in the majority of profit through sales of HP printer supplies in the first twenty-five percent of 2010. One can only assure that with the push by HP to make color laserjet impression more affordable for home use and the fact that the machine takes 4 cartridges the bulk of HP’s profit is going to come from selling HP Laserjet Toner.