• The Wall Street Journal (subscription required), Tuesday, February 6, 2007 12 PM

Eastman Kodak Co. is unveiling a long-awaited line of inkjet printers today that turns the traditional razor-and-blade pricing model of the industry on its head. Printer makers derive most of their profits from ink, which is priced at more per ounce than perfume or caviar.

The Kodak printers--primarily intended for home rather than business use--will be priced at $150 to $300. The prices are each about $50 more than comparable multifunction devices now on the market. But the Kodak printers will use a $10 black-ink cartridge and a $15 color-ink cartridge--about half the prevailing ink prices.

Some industry watchers briefed on the products say that Kodak's strategy spells trouble for inkjet-printer makers, especially second-tier vendors like Epson and Lexmark.

But Karl Schwenkmeyer, vp of marketing, inkjet systems at H-P, predicts that consumers will stay with H-P, citing ease of use and speed of printing as important to buyers.

Read the whole story at The Wall Street Journal (subscription required) »