Kodak 'halves cost of photo prints'

Two new Kodak inkjets will print out photos at between a third and half the cost of rival systems - and up to four times as fast, the company claims.

Analysts say the products have the potential to disrupt the much-criticised industry practice of selling consumer printers at close to cost price, or even cheaper, with the aim of gaining continuing revenues from ink cartridges.

This has led to confusion about the true cost of printing, and in some cases it has been cheaper to buy a new printer than a refill.

The Easyshare 5300 and 5500 both act as document as well as photoprinters, and double as a scanner and copier; the 5500 also offers fax. Both print A4 documents but using a second 6x4in tray automatically puts them into photoprint mode.

Kodak is being curiously reticent about the UK prices but the US prices of $199.99 (£104) and $299.99 (£156) for the 5300 and 5500 respectively are par for devices of this class – unless the company decides to use a Vista-style exchange rate. The 5300 will be available in May and the 5500 will be available in July.

The machines take one black cartridge costing £6.99 and a £9.99 five-colour cartridge; a pack of both costs £14.99. A 'value pack' of the colour cartridge plus 180 6in by 4in blank sheets costs £17.99 and works out at 7p a print.

Kodak claims £10 worth of its ink will print 105 pictures, compared with 61 on the Canon 160, 39 on the HP C5180 and 23 on the HP C3180.

Kodak is new to the consumer inkjet market but of course it has been in the photo-printing business for years. It uses a combination of pigmented inks and porous paper that dries immediately on printing, and is water and smudge resistant.

Philip Grote, business-printer specialist at Current Analysis, who last year wrote a devastating report on industry pricing, said: "This is not your usual new printer introduction. Kodak completely changes the game with these new AIOs [all-in-ones] and they will not be welcomed by competition."

He added: "Competing openly on cost per print in retail puts the profits of the printing industry in grave danger. To compete with Kodak, competitors will have to reveal what their own printing costs are and ultimately lower prices.

"While this is a great for consumers, it is bad for the printer manufacturers' bottom line. Kodak's AIOs combine lab quality photo printing and fast home office printing in one affordable device that will take the market by storm."