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. It often confuses the average person without the history of events or even the desire to study the back and forth struggle that companies go through to fight for their share of the market place.
For me it is fairly easy being exposed to the industry for over 22 years and the results are staggering when you sit back and look at the evolution of the industry. Standing back and observing the embroiled battles fought in the corporate world amuses me. From time to time I will engage in the lessons handed out to companies through better advertising practices. I have always establish that small businesses can react and counter larger corporations advertising campaigns quicker because of the politics that are involved at the corporate levels. But for you just sit back and pay attention to 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 electronic computer company while Xerox had built its name on copiers. vantage IBM. So Xerox went on to build littler 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 interpreted lightly by IBM and ultimately ended up in the supreme court where IBM lost and the Magnum 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.
How HP Toner was introduced
Meticulously waiting in the lurks was HP who for the most part was a computer company developing the same cartridge chip technology. But HP was doing this process not to lock out the rival but instead was using the technology to help give notice to the consumer of the toner levels and other pertinent information about the cartridge. So a deal was struck with several companies that sold remanufacturing components and HP that HP would help the industry in return the industry would help HP place machines and counter Lexmark in the lawsuit and ultimately win. 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 expanded 22%.
And so it goes each manufacturer has developed a design of printer that utilizes specific cartridges. Lexmark has upped the lockout feature making it nearly insufferable to duplicate. IBM has Lexmark build their machines while Brother has separated their cartridges into 2 parts the toner cartridge and the drum cartridge increasing its supplies and yielding higher earnings. 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. Dell tried to help Lexmark by giving away a low cost printer with every computer but quickly found computer customers weren’t excited about the cost of cartridges. HP well they went to the top when they found a way to get Staples the worlds greatest office supply store to agree to remove their remanufactured cartridges in transfer 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 void cartridges they can in an effort to preclude 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.)
HP Toner now holds 85% of the share
All in all HP is the most preferred printer for a cause. 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 boost 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 printing 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.