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Article: Hello Kodak, Goodbye Margins?(Eastman Kodak Co. gears up to capture inkjet printers market)
- Article from:
- TWICE
- Article date:
- February 26, 2007
- Author:
CopyrightCOPYRIGHT 2007 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Greg Scoblete
NEW YORK - Kodak's ability to fundamentally overturn the prevailing business model in the inkjet printer market hinges on how quickly they gain market share and on whether consumers are truly holding off on printing their images because of costs, say analysts and vendors.
If Kodak is successful, analysts say, its strategy could initiate a price war with the category's 800-pound gorilla, HP, which would eat into the heretofore generous margins associated with printer consumables.
"Margins on inks are very high - inkjet ink is more expensive than some fancy perfumes," said Steve Hoffenberg, consumer imaging research director, Lyra Research.
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