Xerox Corporation (XRX) is also getting into the game, marketing a cheaper "HP-compatible" toner cartridge.

FORBES: Wrinkle cream

In September it introduced Xerox-branded toner cartridges for HP laser printers.

FORBES: Judo attack

But longer term, competing against Apple ( AAPL), IBM ( IBM), Dell ( DELL) and others, HP will need innovation to succeed, not just cheaper overhead in selling printers and toner.

FORBES: Hurd Has A New Gig, But The Real Work Is Back At HP