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Vyomesh V.J. Joshi, head of imaging and printing for Hewlett-Packard (HP), has reorganized the group to compete in the digital photography market. In April 2005, HP moved its digital photo strategy onto the Internet with the acquisition of Snapfish, allowing users to store and share digital images and place orders for prints. HP is also moving into retail with two digital photo kiosk models. One model runs without a photo lab or cashier in universities and other non-traditional retail locations. HP also wants to get into drugstores, photo shops, and supermarkets, which is a market where Eastman Kodak and Fuji Photo Film have for a considerable period have had their digital photo kiosks. HP previously depended on home printers for revenue and profit, and ink is one of HP's most lucrative products (over half its operating profit in the most recent fiscal quarter ending January 31, based on estimates from Sanford C. Bernstein & Company). IDC says the fastest growth is in in-store and online printing. By 2009, forecasts IDC, direct and Internet assisted retail printing will generate many more digital images than home printing, with 21.8 billion digital images printed in stores as compared with 15.7 in homes. Currently Kodak EasyShare Gallery is one of the most widely used digital photo sites, and Kodak has about 75,000 kiosks globally, while Wal-Mart is probably not going to throw out Fuji and bring in H-Data management as separate from to replace them.
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