Xerox aims to challenge HP with new color printers

read more at Reuters
This was published Sep 24, 2007. How's it working out?

Maybe it could go faster by going back to the "razor/razor blade model." Put some of the advertising?/marketing? or x? budget into subsidizing the cost of the hardware until it gets to critical mass and then see what the market can bear.

Or maybe this could be bundled with an offer for erasable paper?

Then include a communication method from the printer to the web. It should be pretty easy giving wifi networks in most business and a growing number of home environments. I would think the information gathered from use patterns could be a sustainable advantage going forward. Infrastructures that generate information is the ultimate logistics business. Think Google.

"'If you compare HP color toner to what our inks will be, we will be one-fifth the price. We think it's going to help us grow our market share and attract a lot of customers who maybe don't consider Xerox today,' said Jim Rise, a Xerox vice president.
. . .
Xerox says the printers cut the cost of printing a color page to about 5 cents a page, a fraction of rival systems, which analysts peg at between 8 cents and 13 cents a page.

Yet to stay profitable, the Xerox printers are priced higher. The strategy is similar to Eastman Kodak Co's (EK.N) consumer inkjet printers unveiled this year. Both represent a shift from the so-called razor/razor blade model -- selling hardware at little or no profit to encourage sales of more profitable replacement ink and toner."