In a striking remark that has stirred controversy, HP CEO Enrique Lores recently declared that customers who do not use HP’s own supplies for their printers are considered “bad investments” for the company. This statement highlights the ongoing tension between printer manufacturers and consumers over the use of third-party ink and toner cartridges.
Key Highlights:
- HP CEO Enrique Lores describes customers not using HP supplies as ‘bad investments’.
- The company aims to make printing a subscription service.
- HP faces a class-action lawsuit over allegations of preventing non-HP cartridges usage.
- HP’s Dynamic Security feature, introduced in 2016, restricts third-party cartridge use.
- Lores cites protection of intellectual property and potential security risks as reasons.
HP’s Stance on Third-Party Supplies: HP has been vocal about its preference for customers to use official HP supplies. The company’s introduction of Dynamic Security in 2016 was a step to enforce this, as it restricts the usage of non-HP cartridges, ostensibly to protect HP’s intellectual property and ensure a quality customer experience. Lores reiterated this stance, emphasizing the importance of protecting the company’s intellectual property and the potential security risks posed by third-party cartridges.
The Economics of Printer Supplies: Lores’ comments underscore the business model of printer companies like HP, where the sale of printers is not the sole revenue stream. Instead, the continuous sale of official supplies, such as ink and toner cartridges, forms a significant part of their revenue. Lores’ assertion that a customer not using HP supplies is a ‘bad investment’ reflects this economic reality.
Consumer Choice and Legal Challenges: The CEO’s remarks come amid a backdrop of legal challenges, including a class-action lawsuit alleging that HP deliberately prevented its hardware from accepting non-HP branded cartridges. This raises questions about consumer rights and the freedom to choose third-party alternatives, which are often more affordable.
Security Concerns: Lores also highlighted security concerns, suggesting that third-party cartridges could potentially introduce malware into printers and networks. While this underlines the importance of cybersecurity in the IoT era, it also feeds into the broader debate about the balance between security and consumer choice.
HP’s Future Strategy: Looking ahead, HP aims to transition printing into a subscription model. This move could further align customer usage with HP’s business interests but might also limit consumer choice and flexibility.
Conclusion: Enrique Lores’ candid remarks about customers using non-HP supplies mark a significant moment in the ongoing debate between printer manufacturers and consumers. While HP stresses the importance of protecting its intellectual property and ensuring security, the implications for consumer choice and market competition remain critical points of discussion.
