A
Arthur Entlich
Yes, the HP 2003 Annual Report is on line, and no, I don't have the URL
at my fingertips. I went to HP's website and I went to their investor
area, and I dug it up. It is also not presented as I did. They have it
broken down by quarter, so I added together all the quarters for the
year '03, for both revenues and profits in each division or sector of
the company to come up with the numbers I did.
I never stated that John Wright was wrong (excuse the pun). Bob simply
expressed the numbers based on revenues, which might have been what he
had readily available. I have no reason to assume Bob was trying to
mislead anyone.
The truth is, even my numbers may not show the complete picture. Let's
say HP loses money, once shelf space fees, advertising, design,
shipping. instruction manual creation and translation, etc and other
manufacturing costs are taken into account with the printers, scanners
an digital cameras themselves. If one removes the the hardware and
potential losses they may involve from the "Printing and imaging"
division, the ink and toner and consumables may actually have a vastly
higher profit margin still.
So, what do we conclude? HP is charging too much for the ink and toner
they sell? Well, yes, but that's only part of the story, isn't it? The
whole business is a entity. If everyone stopped buying HP ink and paper
and toner and used third party product, HP might possibly go under, but
before doing so, they would have to restructure their pricing.
Right now, pretty much everything HP sells, be it computers, scanners,
digital cameras or printers, is with one thing in mind. Hardcopy output
that uses paper and ink and toner. What is HP advertising (at least in
North America?) Color photo output. So, they are selling their
scanners, and printers and digital cameras and maybe even computers as
potential "lost leaders" so they can sell ink and toner and paper.
Although I personally do not like this business model, from a strictly
environmental aspect, if there was no longer a demand for the ink and
toner and paper, HP would revamp their pricing structure.
And I only choose HP as an example. Other companies that sell ink and
toner and paper do the same thing.
Regarding the merger in the computer divisions with Compaq, I agree it
was a bad move. Then again, so did almost everyone who had personal
investments involved. The vote was pushed the other way by
institutional investors and a few very heavily held owners.
Oh, as to 5% page coverage. I have seen examples of 5% page coverage.
It is basically a letter page with about 1/3 of the total page surface
covered with 12 point courier font. It isn't much. You know, it is
interesting, I tried doing a Google search for 5% ink coverage examples,
both by web and images, and came up empty. You would think there would
be several examples. The best I could do is find a block of black
equivalent to 5% of a page, but that doesn't really tell you much as to
how type looks on a page.
And finally, John Roth. gee, doesn't everyone know what a great CEO he
was, I think he won CEO of the year before Nortel stock crashed and
burned. Of course, by then, he had sold off most of the millions of
shares he had received in options while he was CEO.
Art
at my fingertips. I went to HP's website and I went to their investor
area, and I dug it up. It is also not presented as I did. They have it
broken down by quarter, so I added together all the quarters for the
year '03, for both revenues and profits in each division or sector of
the company to come up with the numbers I did.
I never stated that John Wright was wrong (excuse the pun). Bob simply
expressed the numbers based on revenues, which might have been what he
had readily available. I have no reason to assume Bob was trying to
mislead anyone.
The truth is, even my numbers may not show the complete picture. Let's
say HP loses money, once shelf space fees, advertising, design,
shipping. instruction manual creation and translation, etc and other
manufacturing costs are taken into account with the printers, scanners
an digital cameras themselves. If one removes the the hardware and
potential losses they may involve from the "Printing and imaging"
division, the ink and toner and consumables may actually have a vastly
higher profit margin still.
So, what do we conclude? HP is charging too much for the ink and toner
they sell? Well, yes, but that's only part of the story, isn't it? The
whole business is a entity. If everyone stopped buying HP ink and paper
and toner and used third party product, HP might possibly go under, but
before doing so, they would have to restructure their pricing.
Right now, pretty much everything HP sells, be it computers, scanners,
digital cameras or printers, is with one thing in mind. Hardcopy output
that uses paper and ink and toner. What is HP advertising (at least in
North America?) Color photo output. So, they are selling their
scanners, and printers and digital cameras and maybe even computers as
potential "lost leaders" so they can sell ink and toner and paper.
Although I personally do not like this business model, from a strictly
environmental aspect, if there was no longer a demand for the ink and
toner and paper, HP would revamp their pricing structure.
And I only choose HP as an example. Other companies that sell ink and
toner and paper do the same thing.
Regarding the merger in the computer divisions with Compaq, I agree it
was a bad move. Then again, so did almost everyone who had personal
investments involved. The vote was pushed the other way by
institutional investors and a few very heavily held owners.
Oh, as to 5% page coverage. I have seen examples of 5% page coverage.
It is basically a letter page with about 1/3 of the total page surface
covered with 12 point courier font. It isn't much. You know, it is
interesting, I tried doing a Google search for 5% ink coverage examples,
both by web and images, and came up empty. You would think there would
be several examples. The best I could do is find a block of black
equivalent to 5% of a page, but that doesn't really tell you much as to
how type looks on a page.
And finally, John Roth. gee, doesn't everyone know what a great CEO he
was, I think he won CEO of the year before Nortel stock crashed and
burned. Of course, by then, he had sold off most of the millions of
shares he had received in options while he was CEO.
Art