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Posted by El Reg on May 25, 2004 at 10:17:09:
Dell chief operating officer and CEO-in-waiting, Kevin Rollins has been telling the San Francisco Chronicle what he thinks of HP's business model. Rollins told the paper that HP was selling computers at a loss just to get punters hooked on its evil ink cartridge refills.
Rollins believes HP is selling computers at a loss knowing that it can make the money back when they have to replace printer cartridges. 70 per cent of HP's profit came from ink. Rollins called it "the most expensive liquid in the world". Indeed, one consumers' association found that HP ink costs seven times more than vintage Dom Perignon champagne.
Dell is keen to capture more of the printer market. It sold 800,000 machines in the first three months of 2004 - HP sells one million printers a week.