Epson cuts ink cartridge price by 50%

SEPTEMBER 25, 2006

Epson has slashed the price of its new set of individual color cartridges by
nearly 50 percent. Epson expects that the move will definitely encourage
customers to buy genuine Epson cartridges. According to the company officials,
only 35 percent of its customers use genuine cartridges. “Most users resorted
to using compatibles or refilling because they always felt the cost of ink
cartridges to be very high,” said SM Ramprasad, National Business Manager —
Consumer Products, Epson India. “By reducing the price from Rs 495 to Rs 250,
we are sure the number of genuine cartridge users will go up to 85 percent,”
he added.

If the 85 percent target is achieved, it is a direct impact on compatible
manufacturers and refillers.

According to N Sambamoorthy, GM - Business Product Group, Epson India, the
company has not compromised on the quality, while reducing the price by 50
percent. “It's the innovation of Epson's research and development that has
helped lower the cost. Beside, this will help us generate volumes and make up
for the reduced pricing,” said Sambamoorthy.

Meanwhile, the company also launched a series of printer, which included
three new inkjet all-in-ones (AIO) - CX2800, CX3900, CX5900 - and two new
standalone inkjet printers - C58 and C79 - targeted at the Home, SOHO and
corporate users.

C58 and CX2800 will support the newly launched low-cost cartridges.

The company also announced that all its models will from now on have
individual ink tank for cyan, magenta, yellow and black colors, which was
earlier available only in select models.

With the introduction of new products and revision of cartridge pricing, the
company is expecting increase its marketshare to 30 percent from the current 23
percent in the inkjet printer category.