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Europe hit with big supplies price increases from Hewlett-Packard

Issue #0904/2 – As expected (), Hewlett-Packard has increased supplies prices this month but by an unexpectedly high percentage – in the UK up to 43%!

With the world financial system, and resulting exchange rate fluctuation firmly at fault, Hewlett-Packard has now responded with massive price increases on its supplies products. This affects the UK more than most countries because the UK is so closely allied to the US in terms of financial culture.

HP 364 BlackHP 364 Black

In the UK, the highest increase is a phenomenal 42.9%, taking the price from £6.99 to £9.99. This is on the HP 364 standard black cartridge for the company’s new range of Photosmart and Deskjet 5-ink printers and All-in-Ones. The colour cartridges and photo black, on the other hand, have been increased by only 14.3%. Increases on the high capacity versions of these cartridges are similar but with an increase of only 24% on the black (from £20.99 to £25.99). Other inkjet price increases generally range between about 15% and 25%, with an average falling at 18.8%.

Increases in the UK on toner cartridges range between 19% and 28.3%, with an average of 20.5%. Most prices are in the 19% to 22% range. Again, the highest increase is on a black cartridge, this time for the Colour LaserJet CP2025 and CM2320 MFP.

Increases in the Euro zone are much, much lower. In Germany, for instance, the average increase is only 5.1% with a maximum increase of only 18.1% – the same black cartridge for the Colour LaserJet CP2025 and CM2320 MFP.

Interestingly, there are US Dollar price increases on toner products in countries where the local currency is fixed to the Dollar, averaging just over 2.5%. The same increases have been applied in the local currency, where appropriate (e.g. South Africa and Israel). There are no price increases on inkjet supplies products in these countries.

So, what we are seeing in the overall market, is Hewlett-Packard placing a slightly higher burden than previously on businesses in Dollar-based countries. In those countries with currency exchange rate issues against the Dollar, businesses are being targeted with big increases but it is the consumer that is affected most.

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