Hewlett Packard enter low end market fray

Hewlett Packard enter low end market fray

Hewlett Packard have finally overcome image inhibitions and joined the low end of the printer market with the establishment of a fully owned subsidiary, Apollo Consumer Products.

HP have cautiously restricted its involvement in the newly created company to a logo that indicates that the machines are "Powered by Hewlett Packard Inkjet Technology," due to initial concerns about the cheaper product tainting the prestige of HP's brand integrity.

However this fear is compensated for by the potential profit in what industry analysts, IDC, are touting as the fastest growing market sector. With a staff of only ten and a strategy of outsourcing and sub contracting, the low overheads of Apollo Consumer Products will accentuate the profitability of the venture.

HP sources are confident that the sub US$100 Apollo colour printer will capture a similar percentage of the low end market as the 50 per cent share they control at the top end.

At present Apollo is intending only to operate and distribute in America and Europe but the second quarter of the year should see cheap HP printers flood the Australian market, according to Hewlett Packard sources.

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