Reply to post: Re: Dinosaurs of a digital age

Icahn smell money! Corporate raider grabs $1.2bn of HP stock to push for Xerox merger

Doctor Syntax Silver badge

Re: Dinosaurs of a digital age

One of the great myths of finance is that growth should be expected to go on for ever. It doesn't. Every new market looks as if it's taking off exponentially. It isn't. It's sigmoidal. If you're dealing with something consumable it'll flatten out at a fixed level of consumption. If you're dealing with something durable it flattens out at a given level of installed base; sales are the first differential of the installed base.

Expect the market to saturate. For consumables it's at a highish level which is why HP is keen on making the most out of ink and really in trouble if it can't make the most of the market. For durables it's basically replacement plus what can be squeezed out of the market with "upgrades" and "enhancements". That doesn't mean they're dinosaurs, it just means that the market's matured, just like you should have expected.

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