Final answer:
The statement regarding Hewlett-Packard's 'razors and blades' pricing strategy for inkjet printers and ink is true. HP printers are sold with low margins while replacement cartridges are sold with high margins. This model is called the 'printer and ink' or 'razors and blades' pricing model.
Step-by-step explanation:
The statement is True. Hewlett-Packard, also known as HP, is indeed one of the world's leading marketers of inkjet printers. The company has historically priced its printers low with slim margins, whereas it has made higher profits from the sales of replacement ink cartridges. This pricing strategy is known as "razors and blades" or "printer and ink" pricing model, referring to the business strategy of selling a dependent product at a low cost, and recouping the profits via sales of required consumables or complementary products. Digital inkjet prints have become widespread from in-house use to valuable art pieces. High-end inkjet prints that are sold as art pieces are often priced highly due to their archival quality materials and the involvement of the artist in the production and sign-off process. On the other hand, standard commercial inkjet prints are available at much lower prices and are often intended for more temporary use. The technology behind inkjet printers involves the creation of ink droplets in the printer's ink reservoir. These droplets are electrostatically charged and directed with precision to form images and text on paper. The capability to produce color images with inkjet printers utilizes the black ink as well as the three primary color inks cyan, magenta, and yellow to create a full spectrum of colors.