HP CEO Says Customers Shunning Company’s Supplies are “Bad Investments”
In a recent interview, HP CEO Enrique Lores defended the company’s ink subscription model and firm policy of mandating the use of its own cartridges, stating that customers opting for alternatives are considered “bad investments” for the company.
HP has consistently urged users not to turn to third-party alternatives for ink cartridges, implementing features like Dynamic Security in 2016 to protect its intellectual property and maintain customer experience quality. This feature aims to prevent the use of ink or toner cartridges lacking new or reused HP chips or electronic circuitry. Although initially removed due to customer backlash, it resurfaced in 2017.
The tech giant currently faces a class-action lawsuit in the US, alleging that a firmware update disabled printers using non-HP replacement cartridges. Lores, when questioned about the lawsuit during a CNBC interview, emphasized the importance of protecting HP’s intellectual property and acknowledged that printers are halted when unauthorized cartridges are identified.
Lores staunchly defended HP’s stance, stating, “Every time a customer buys a printer, it’s an investment for us. We are investing in that customer, and if that customer doesn’t print enough or doesn’t use our supplies, it’s a bad investment.”
While warning against the use of non-HP cartridges, Lores highlighted potential issues, including printers ceasing to work and even security concerns. He suggested that embedded viruses could compromise both printers and networks. However, he reassured that HP’s ink cartridge Digital Rights Management (DRM) primarily aims to enhance customer experience.
Lores concluded by expressing a long-term objective of making printing a subscription service, aligning with HP’s broader strategy. The company had faced previous legal challenges and compensations related to ink cartridge DRM practices in Australia and Europe, indicating ongoing tensions between the tech giant and consumers regarding its supply policies.
