At the New York Times, David Pogue has done an exhaustive, though happily not exhausting, analysis of the new Kodak printers - which cost more per printer, but have cheaper ink.
Printers and especially printer ink are Hewlett-Packard's cash cow. Profit margins for that part of the business are, most recently, 16.3% - compared to 4.8% for the PC side of its business. (Overall, its most recent net income across the company was just 1.4% - see the Bloomberg writeup.)
Into this happy situation, where pretty much every other printer maker is also doing the same sell-the-razor-profit-on-blades model, comes Kodak.
Kodak, of course, has nothing to lose at this stage. Its film business is being crippled by those damn digital cameras. Digital cameras are a diverse business which it can't dominate. But it knows how to do inks that will make great photographs: it's got a century of experience there.
Pogue's analysis draws on outside work, but show that while H-P narrowly (as in 0.1 cent per page) wins for a black ink non-colour page, Kodak's products pull ahead
And ironically, H-P's new pricing scheme (with a small and XL cartridge), introduced exactly to coincide with Kodak's and so muddy the waters increase consumer choice turns out to make its inks more expensive. Oh my.
Pogue's conclusions:
So no, the new Kodak doesn't run away with the crown in every department. But it easily holds its own against much bigger, more experienced manufacturers. And it has its priorities straight: great-looking photos that last a lifetime; easy-to-use controls; American-based toll-free tech support; and speeds and features that are no embarrassment.
Kodak's going to be selling its All-in-One printers through Dixons Store Group from next month. We'll be watching to see whether this takes off.
