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Will HP’s economic woes mean higher prices?

November 28, 2023

Will HP’s economic woes lead to restrictive consumable policies, impacting sustainability and consumer costs.

HP is facing economic challenges as indicated by its latest financial results showing declining revenues. In response, HP is reportedly planning changes to its Dynamic Security feature, a move that’s stirring controversy in the consumables market.

Dynamic Security, a technology used by HP to authenticate cartridges, is set to expand its scope. The company is discretely informing its channel partners about these changes, which are expected to increase the number of devices covered. This expansion aims to lock out more aftermarket consumables, forcing consumers to rely on HP’s own, and more expensive, ink and toner cartridges. The focus on Dynamic Security, distinct from IT security, underscores the tension between HP’s efforts to recover financially and the growing demand for sustainable practices.

Critics argue that this strategy not only increases costs for consumers but also poses a significant setback for sustainability efforts. By limiting the use of aftermarket and refilled cartridges, HP’s policy discourages the reuse of cartridges, a practice that is more environmentally friendly compared to recycling.

In a recent article published in December 2023, the Dutch consumer magazine Consumentengids, entitled “Ink Inflation at HP,” significant price increases in HP ink cartridges, particularly the HP 301 and HP 364 series, were highlighted. The report, authored by Vincent van Amerongen, reveals that the price of HP’s 301 black ink cartridge soared by 58% from €13 / $14.25 in 2011 to almost €24 / $26.00 in 2023. This increase notably outstrips the inflation rate of 24% during the same period. Similar trends were observed in the pricing of the 301 colour cartridge and its XL versions.

In the United Kingdom, a recent Which? study has found that original printer ink remains prohibitively expensive, costing more per millilitre than luxury items like Dom Perignon Champagne, The Macallan Whisky, and Dior J’Adore Eau de Parfum. This research, led by Oliver Trebilcock, reveals that printer owners could save over £1,000 (€1,150 / $1,264) throughout their printer’s lifetime by opting for third-party ink.

As the European Union gears up to empower consumers with new right-to-repair legislation, HP’s strategy to tighten its Dynamic Security features—effectively limiting third-party cartridge use—raises questions about its alignment with consumer and environmental interests. This move may protect HP’s immediate profits but at the expense of consumer choice and sustainable practices. With the brand’s financial health already showing signs of strain, one must wonder if such tactics might further erode HP’s reputation and consumer trust in an era where brand value increasingly hinges on user empowerment and eco-friendliness.

Categories : World Focus

Tags : Consumentengids Dynamic Security HP Remanufacturing Which

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