in IT general

Printer Cartridges with region codes??

Just when you thought people were beginning to grok that all that region code crap on DVDs is actually hurting sales (and people have code free players, anyway), here’s a new idea: why not expand that hugely successful instrument to – you guessed it – PRINTER CARDRIDGES!

Apart from that being a crap idea anyway, Boing Boing has an excellent anaylsis why all the excuses about commercial and/or currency reasons are also bogus.

I don’t get it – do they really think they can rip off their european customers? It’s already cheaper to buy a new printer than a new cartridge in some places, this move might make it even more worthwhile. Or move people to buy laser printers for good.

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  1. You are not taking into consideration hedging. You can enter into a transaction with a financial institution which can neutralize exchange rate changes. I have included a simple examination.

    Suppose that $1US = 1 Euro (today)
    Suppose that you are due to receive 1 Euro one year from now.
    Suppose that three scenarios are equally likely.

    Scenario A: $1US = 1 Euro
    Scenario B: $1US = 2 Euro
    Scenario C: $1US = 0.5 Euro

    Suppose that you enter into a hedge transaction today with a financial institution (usually a bank) in which the bank will “sell” you $1US for 1 Euro one year from now.

    One year from if Scenario B occurs then the hedge has “paid off” (hedged is better than hedged). Scenario A is a neutral scenario, (no difference between hedged/unhedged. Consider Scenario C, the company could have received the equivalent of $2US and instead gets only $1US.

    It doesn’t always pay to hedge but when currency rates are volitaile then firms are more inclined to hedge.

  2. You are not taking into consideration hedging. You can enter into a transaction with a financial institution which can neutralize exchange rate changes. I have included a simple examination.

    Suppose that $1US = 1 Euro (today)
    Suppose that you are due to receive 1 Euro one year from now.
    Suppose that three scenarios are equally likely.

    Scenario A: $1US = 1 Euro
    Scenario B: $1US = 2 Euro
    Scenario C: $1US = 0.5 Euro

    Suppose that you enter into a hedge transaction today with a financial institution (usually a bank) in which the bank will "sell" you $1US for 1 Euro one year from now.

    One year from if Scenario B occurs then the hedge has "paid off" (hedged is better than hedged). Scenario A is a neutral scenario, (no difference between hedged/unhedged. Consider Scenario C, the company could have received the equivalent of $2US and instead gets only $1US.

    It doesn't always pay to hedge but when currency rates are volitaile then firms are more inclined to hedge.

  3. As a former bank clerk, I know what hedging is. I recommend you read the article I linked to in the post tonunderstand why that is not the reason.

  4. As a former bank clerk, I know what hedging is. I recommend you read the article I linked to in the post tonunderstand why that is not the reason.

Webmentions

  • DeveloperZen.com January 20, 2005

    Constant Bearing, Decreasing Range [IMG] Doing My Little Part- Weblog of Mark Finnern [IMG] Information Arbitrage [IMG] Software Alphabet Soup [IMG] The Village View [IMG] theotherthomasotter [IMG] Venture Chronicles [IMG] http://www.gadgetguy.de – The GadgetGuy [IMG] Yet Another Software Blog

  • DeveloperZen.com January 20, 2005

    [IMG] Constant Bearing, Decreasing Range [IMG] Doing My Little Part- Weblog of Mark Finnern [IMG] Software Alphabet Soup [IMG] The Village View [IMG] theotherthomasotter [IMG] Venture Chronicles [IMG] http://www.gadgetguy.de – The GadgetGuy [IMG] Yet Another Software Blog

  • DeveloperZen.com January 20, 2005

    [IMG] Constant Bearing, Decreasing Range [IMG] Doing My Little Part- Weblog of Mark Finnern [IMG] Software Alphabet Soup [IMG] The Village View [IMG] theotherthomasotter [IMG] Venture Chronicles [IMG] http://www.gadgetguy.de – The GadgetGuy [IMG] Yet Another Software Blog