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 user 2005-08-15 at 7:45:00 am Views: 39
  • #12685

    MFPs put the brakes on the UAE printer market, says

    After expanding by nearly a third in 2003, the
    United Arab Emirates printer market grew only 2.2 per cent in shipments to over
    262,000 units.

    According to a new IDC study, revenue expanded a mere 0.9% as
    prices continued to fall. The surge in popularity of MFPs and the increasing use
    of networking and departmental printers has resulted in a significant slowdown
    in the single-function printer market. As a result, IDC expects the UAE printer market to be flat this year
    and start contracting in 2006.

    The falling demand for inkjets meant that
    this technology accounted for slightly less than half of all printer shipments
    in the UAE in 2004. Due to
    rock-bottom prices, however, the form factor made up just over a fifth of
    revenue. By contrast, mono laser printers amounted to 36.7% of shipments and
    just under 49% of revenue last year. Due to aggressive pricing and technology
    advances, the segment exhibited 36.7% shipment growth but only 15.7% revenue
    growth in 2004. The color laser segment was the most dynamic, expanding by 38.4%
    in shipments, but it started from a very small base.

    “Color laser
    printers will stay hot for the foreseeable future,” says Naser Sha’sha’a, Senior
    Analyst, IDC CEMA. “But the rest of the single-function printer market is on its
    last legs in terms of growth. After this year, demand for mono lasers will be
    flat and then start to drop along with the rest of the market as users start
    buying MFPs.”

    HP was the hands down leader on the UAE printer market last year. The vendor
    captured a volume share more than double that of second-ranked Epson and more
    than triple that of third-ranked Canon. Together these three vendors represented
    more than 93% of the UAE
    market in 2004. “Although dealers and resellers still account for the bulk of
    printer sales in the UAE,” says Sha’sha’a, “vendors increasingly need shelf
    space in retail outlets, where a lot of home users and small office users now
    shop for inexpensive electronics. Making sure their models and logos are visible
    will help vendors ensure loyalty and new customer acquisition as users migrate
    to MFPs.”