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HP to print cheap inkjets
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January 6, 1999: 12:58 p.m. ET
Company forms new unit to make sub-$100 computer printers
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NEW YORK (CNNfn) - Hewlett Packard Co. said Wednesday it plans to enter the low-end inkjet printer market and has formed a wholly owned subsidiary, Apollo Consumer Products Inc., to sell the under-$100 line.
Sub-$1,000 PCs have become the industry standard in the past year as computer makers have stepped up their aggressive pricing efforts. By developing a line of printers selling for less than $100, HP hopes to continue the trend of lower and lower computer hardware prices and further establish the company's market dominance.
In an interview with CNNfn, HP CEO and Chairman Lewis Platt said, "We expect (Apollo) will have a very positive effect on margins. We stayed out of the...'ultra-low-end' of the inkjet printer business for a while because we were concerned about margins. We think with this new subsidiary -- it has very few people, it does a lot of outsourcing -- that we've conquered the margin problem at the ultra-low-end."
"We expect it will add to the overall margins of HP, rather than detract from it," he added.
San Diego-based Apollo will have separate headquarters, management, distribution and sales force from parent company Hewlett-Packard (HWP).
The new company expects to launch its sub-$100 line of printers in the United States and Europe this Spring.
"Apollo employs a new business model that best meets consumer needs at the low end and also gives the sales channel the opportunity to customize its product line by offering a range of printers at different price points, including the ultra-low end," said Antonio M. Perez, HP vice president and general manger of the Inkjet Products group.
HP stock was up 1-9/16 to 71-1/4 at midday. 
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Hewlett Packard
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