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Printer Companies Closing Inkjet-Laser Gap Color Laser Prices Fall Razor-and-blade model could work for lasers as well as inkjet printers.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| September 01, 2004 | COPYRIGHT 2004 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: KEN SPENCER BROWN

No, there's nothing wrong with your toner. The line separating inkjet and laser printers is just fading a little.

For years, the two segments of the computer printer industry have operated their own distinct realms. Each has had its own target customer, distribution channel and business model. But as the two categories start to go head-to-head, that's all changing.

"There's a collision taking place," said Gary Morin, chief financial officer for printer maker Lexmark International.

Laser printer makers have long targeted heavy users, who could afford the hefty price tag and benefited in the long run from the lower per-page costs of running them.

And inkjets were aimed mostly at home users, who paid a lower upfront price for the discounted hardware but made up the difference by buying more supplies.

Those differences are growing fuzzier, thanks in part to a price war sparked last year by Konica Minolta, which launched a sub-$500 color laser model. Since then, Hewlett-Packard, Lexmark and Samsung have countered with printers that match or come close to that price.

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