Archive for the ‘Business’ category

Obviously, HP Thinks We Are Stupid

May 25th, 2010

HP explains why printer ink is so expensive – that’s the headline of several posts and articles around the net right now. HP seems to have launched a PR campaign for original ink cartridges, and the press is cooperating nicely.

Personally, I wouldn’t touch an HP product with a 10 foot stick, but many people succumb to the cheap prices. Still, when you buy a cheap ink-jet printer, the printer’s cost itself is misleading. Why? Because as we all know, pretty soon you’d have spent much more on ink cartridges. There are some ridiculous cases in which it’s actually cheaper to buy a new printer!

Trying to justify the unreasonable prices of ink cartridges, HP released this campaign that blabs about the cost of research, quality of ink and reliability. They have even tested a focus group made out of 17 (!!!) people, and most of them said they are not happy with replacement ink.

When talking about regular, cheap, home-use printers, the claims about ink quality are pointless. It doesn’t make any sense to pay $25 for an ink cartridge, just to print some recipes and simple documents. Professional and business users might be a different story, but small businesses also need to mind their expenses, and ink prices are simply too high.

(This graph has been around the net for a while. It’s probably not 100% accurate, but it goes to show a point)

The fact remains that replacement or recycled ink cartridges cost about half as much as original ink cartridges. HP and other companies also won’t disclose the actual amount of printer ink that we get in each cartridge. Why is that, do you think? HP says: “Each system has a different way it uses ink or the drop size is different. If you looked strictly at volume you wouldn’t see those differences and it would be confusing to the customers.” Sure. The customers are stupid, so let’s not confuse them with DATA.

Have you ever opened an “empty” ink cartridge? It’s amazing to see that even when the printer reports that the cartridge is empty, it still has many milliliters of ink left inside, yet all that ink is unusable. All that money spent on research, and HP and the other companies can’t produce better ink delivery systems?

Plus, all the bullshit about cost-per-page is calculated in weird ways, that no one but the companies themselves understands.

The prices of printers and other electronic products are constantly dropping, so the companies need to make a buck in other ways. And they do make that buck: HP spends $1 billion a year on ink research and development, while the total revenue for the printing division alone was $24 billion last year. It’s not about quality, research or technology. It’s about greed.

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iPhone Could Overtake BlackBerry Market Share in One Year

March 7th, 2010

Sooner that we thought? Forbes seems to think so:

Apple has increased its mobile phone market share from 0.3% in 2007 to 2% in 2009, while RIM mobile phone market share increased from 1% to about 3% during the same period.  We expect Apple’s market share to overtake that of RIM by 2011, and for Apple and RIM to have 11% and 8% market share, respectively, by the end of Trefis forecast period.  We believe sales of the iPhone will eventually outpace BlackBerry sale…

Read the full article

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Google Buys Picnik

March 2nd, 2010

Google continues its latest shopping spree. This time it’s Picnik, an online services that offers photo editing tools.

Picnik is integrated with photo-sharing services like Picasa, Flickr, Photobucket and the photo album components from Facebook and MySpace. Google intends to preserve and advance those partnerships. Picnik users will be glad to hear that the service continues to be free, and that no changes have been made to their accounts.

Here’s what Picnik’s blog had to say about it:

…we’ve just been acquired by Google! What does this mean for Picnik? It means we can think BIG. Google processes petabytes of data every day, and with their worldwide infrastructure and world-class team, it is truly the best home we could have found. Under the Google roof we’ll reach more people than ever before, impacting more lives and making more photos more awesome.

Picnik was founded in 2006 and has about 20 employees. It will remain in Seattle but move to Google’s offices in that city.

Picnik’s site attracts almost 40 million visits per month, with each visit lasting an average of 17 minutes.

Other Popular Photo Editing Tools

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E-Books Prices Rise – What Will Consumers Do?

February 11th, 2010

It stands to reason that e-books should be cheaper than regular books, but it seems that the publishing companies disagree. According to the New York Times, the prices of e-books are going to rise. The consumers, obviously, aren’t going to be happy about it:

But now, with e-books scheduled to cost $12.99 to $14.99 under new deals that publishers negotiated with Apple and Amazon, a broader swath of customers may resist the new pricing. The higher prices will go into effect within the next few months.

Read the full article: E-Book Price Increase May Stir Readers’ Passions

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War of the e-books: Amazon Removes Macmillan Books

January 30th, 2010

Apple’s iPad was launched a few days ago and the war in the e-book arena quickly escalated.

Amazon has pulled all Macmillan books from its online store. Macmillan is a big publisher and includes publishing houses Henry Holt & Co., science fiction-focused Tor/Forge and the Tiffany of fiction, Farrar, Straus and Giroux.

It seems that Amazon and Macmillan were in disagreement as to the price of e-books sold for the Kindle. Amazon wants a price of $9.99 for Kindle e-books, but the publishers aren’t happy with this demand and would like, of course, to sell their e-books for higher prices.

Amazon could put a lot of pressure on publishers right up until Wednesday, the day of the iPad’s launch. Now the e-book arena has a set of different rules. Sure enough, the publishers didn’t wait. Five publishers were announced to be working with Apple; Macmillan is one of them.

Amazon still has dangerous ammunition, though: all formats of Macmillan books are now unavailable for purchase from the online giant. This can be very bad for the publisher.

It’s hard to predict who will win this battle. After all, there are quite a few online retailers that sell books. If a shopper is really eager to get a certain book, he will find it in a myriad of shops. On the other hand, Amazon has very effective marketing tactics, and buyers may simply be tempted to buy a different book or product. It seems that cooperation is in the interest of both sides and that a compromise will be reached, eventually.

In the mean time, let’s hope that good, fierce competition between different platforms will benefit us, the clients.

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