Thread by @trengriffin

25iQuiz: Do you agree that's what changed?

"HP’s business model was to sell printers at a discount and make its money on ink cartridges—classic razor-and-blades. 'That model made sense when the goal was to penetrate more consumer homes and more offices'."news.google.com/articles/CAIiE…

Did a change in HP's goal require a new business model or did HP's ability to sell enough of a complementary product change?

From 2006: "The printer itself accounts for only 1/3 of the profit pool over its life, whereas cartridges account for 2/3s." bcg.com/documents/file…

"Absent customer lock-in, the marketer will be unable to make up for the price subsidy on the initial razor through higher margins on the blades."

"Rather than compete on price, the printer maker [Epson] is dropping the cartridge issue entirely’’ iranarze.ir/wp-content/upl…

"Kevin Rippey, an Evercore ISI analyst, calls Spotify a “pure play on a loss-leader category.'" barrons.com/articles/two-a… What can Spotify cross-sell that has defendable higher margins and a huge TAM?

"Goldman has lost $1.3 billion on its consumer bank" google.com/amp/s/www.wsj.… What can Goldman cross-sell that has defendable higher margins and a huge TAM?

"HPQ fiscal third quarter results posted Thursday showed printing supply revenue falling 7% from a year earlier to about $3.2B."

"We need to optimize our business model, maximize the installed base of 150 million printers."

marketwatch.com/story/with-yet…