In the U.S. today, inkjets are well-entrenched and dominating in one position alone, the sub-$200 price band. This is perhaps not the most enviable position, but it is a foothold nonetheless. It’s true that inkjet’s active user base continues to generate extremely profitable consumable sales, but slowing hardware sales to consumers could put a dent in future supplies revenue. And, emerging trends such as a decline in home photo printing and the explosive growth of mobile device use are certainly concerns (although capturing digital content also presents an attractive opportunity).
While personal inkjets are not about to disappear, the best growth prospects in the inkjet industry exist with businesses. Unfortunately, during the past eight years business inkjets have witnessed pricing erode significantly – the average selling price for A4 business AiOs has declined by about 40 percent since the first quarter of 2004 (U.S. e-commerce channel). This sharp decline came largely at the expense of HP’s Officejet series, whose flagship business AiOs used to command prices upwards of $999 and took direct aim at business lasers.
The failure of inkjet devices to capture a larger share of business can be attributed to several requirements that have not been met. In general, inkjets fail to deliver the reliability, durability, and speeds required by businesses, especially those printing at high volumes. IT managers balk at the idea of installing inkjets that don’t conform to the security and manageability requirements fulfilled by laser devices. And to date, few desktop inkjets have offered the combination of large ink cartridge yields and paper capacities that would keep device intervention at an acceptable rate.
However, despite a fairly long list of obstacles, inkjet technology also offers a few attractive benefits over competing laser devices. Perhaps the technology’s single largest competitive advantage, inkjet printers are inherently more power efficient than lasers since there is no fuser – fusers require a considerable amount of electricity to heat up and remain warm throughout the workday. While improvements to energy consumption are always possible, and breakthroughs feasible, the basic physics of heating a fuser to bond toner to paper suggests that laser will only see incremental gains in energy efficiency. Given the right circumstances, the cost savings realized by a business that switches from laser to inkjet printers could be significant. And, it’s no secret that businesses are targeting energy reduction in an effort to improve their bottom line as well as their ‘green’ image.
In addition to energy savings, inkjet technology can also deliver a lower cost-per-page (CPP) and acquisition cost than some competing lasers. Inkjets incur less maintenance over the course of their lifespan than lasers, as they lack parts such as drums and fusers that must be periodically replaced (admittedly, most inkjets probably get replaced before they reach the threshold that would require a comparable laser to get maintenance). Lastly, depending on whom you ask, inkjet printers are often preferred by users seeking high quality color prints.
When you consider inkjet’s possible advantages – measurable energy savings, lower acquisition and print cost, fewer maintenance requirements, comparable or better color printing than laser – the technology’s value proposition is clear. Yet, for so many years laser’s favor among businesses and the dealers and VARs who sell to them has remained unchallenged.
Enter HP’s PageWide Technology and the Officejet Pro X
Building on momentum generated over the past decade with successive “Officejet” and “Officejet Pro” launches, HP’s Officejet Pro X is the first desktop printer series from a major brand to feature a page wide array printhead. This new printhead delivers extremely fast color print speeds of between 36 and 42-ipm at a resolution of 2400×1200 dpi. Since the new printhead is stationary, these single-pass devices are much quieter than conventional inkjets and reported to be more durable and reliable, a claim that is likely true simply because there are fewer moving parts.
To the surprise of many, HP has positioned the first batch of Officejet Pro X printers very aggressively – single-function models are priced between $449 and $599, while MFPs are currently priced between $649 and $799. The Officejet Pro X series looks to recapture price bands that HP’s “Officejet” inkjets have not occupied since the Officejet 9100 series that launched in mid-2004.
Targeting color laser business installations, HP’s Officejet Pro X printers not only boast print speeds that best all similarly-priced lasers, but they also address most of the shortcomings commonly associated with inkjet technology. Durability now meets the standards of most small workgroup laser customers, with a recommended page volume of up to 4,200 pages per month. A single-pass paper feed, along with a new pigment ink formulation and new technologies such as active and passive nozzle substitution, mean that users should expect more reliable operation and consistent print quality.
HP also includes several manageability and security solutions with the Officejet Pro X series, features that are must-haves for most IT managers. In terms of energy consumption, these printers deliver noteworthy performance with a typical energy consumption (TEC) of 0.6 kWh/week, well below if not a fraction of competing desktop lasers.
When HP announced its new PageWide platform back in the fourth quarter, it stated that its first printers to use the technology would offer “twice the speed at up to half the cost of color lasers.” In early February the company posted its ink pricing and cartridge yields, which revealed that the company would make good on its bold claim. At current prices, best cost-per-page figures are $0.013 B&W and $0.068 color, about 56 percent lower than the average CPP of competing color laser MFPs (both B&W and color). The same low-cost, high-yield inks also ship with estimated page yields of 9,200 color and 6,600 black, figures that match or exceed most laser competitors and will keep device intervention low.
Specifications aside, HP has to convince resellers that its new inkjets are durable and reliable enough for their business customers. Just as important, resellers need HP’s assurances and incentives that they will see similar returns on the Officejet Pro X and its supplies as they have made selling toner for so many years.
With such a strong (and surprising) leap in inkjet technology, HP has given itself and the inkjet market the best chance to move upstream and gain share with SMBs. HP has extremely high hopes for its new PageWide technology and believes that the launch of the Officejet Pro X series is the first generation of a new platform that will eventually target larger managed business accounts.
For the inkjet industry, which has operated through significant duress in recent years, as evidenced by the recent exit of Lexmark and Kodak, HP’s investment in its PageWide technology should be seen as a major vote of confidence. Though barely on the market, PageWide may be the first of many page wide array inkjets, as Brother, Memjet, and perhaps Memjet-based devices could all benefit from HP’s investment and leadership. Time will tell if HP’s high-speed inkjets are going to succeed in demanding business segments, but at this point the Officejet Pro X is certainly the best catalyst the industry has had to legitimizing ink’s role in the office.
