Jeff Pickle

The Tablets Path of Creative Destruction

Est. Reading Time: 1 minute

I own a Lexmark printer and have for quite a long time now. Everytime I go to buy a new inkjet cartridge, I cringe at the price I have to pay. However, I also admire the business model Lexmark has setup. Sell cheap printers and make up the margins on the ink cartridges. Seems like an excellent way for Lexmark to make money.

So, imagine my surprise when LexMark announced its exit from the development and manufacturing of inkjet printers. Why would a company abandon its core business?

Also last month, Hewlett Packard posted the largest loss in the entire 73 year history of the company.

What is going on?

Inkjet printers have been hit by the gale force wind of a shift in technology that has turned consumer spending away from desktop PCs and printers. Very soon, tablets and mobile are expected to overtake the PC market.

Layoffs at HP and at LexMark are imminent. The day of reckoning has arrived.