*NEWS*OEM:FACE STIFF COMPETITION/MALAYSIA

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*NEWS*OEM:FACE STIFF COMPETITION/MALAYSIA

 user 2007-01-03 at 12:46:00 pm Views: 39
  • #16871

    Original OEM vendors face stiff competition
    JAN
    2007 ORIGINAL vendors in Malaysia’s laser toner and ink jet cartridge
    market continue to face stiff competition from third-party suppliers
    that offer cheaper alternatives, research by IDC Malaysia shows.IDC is
    a global provider of market intelligence and service for the
    information technology, telecommunications and consumer technology
    markets.In its latest quarter report, IDC said the revenue share of
    original vendors had dropped from over 80 per cent last year to 76-77
    per cent in the third quarter of 2006.”These third-party suppliers have
    consistently improved and developed new technology to catch up with
    original vendors. The better technology will enhance users’ confidence
    when using third-party laser toners.”In a few developed countries in
    Asia Pacific, refilled and remanufactured toners are more popular due
    to recycling purposes. Malaysia is anticipated to follow the similar
    trend in the future,” IDC said in the statement.IDC defines third-party
    suppliers as non-printer vendors who manufacture supplies to be used on
    the hardware produced by the printer vendors.”Original vendors such as
    Brother, Canon, Epson, HP and Lexmark face stiff competition in the ink
    cartridge market as there are several successful local third-party
    suppliers such as Esy, SaintInk and Imprint that offer low-priced
    products, which attract users to purchase these compatible products,”
    Emily Tee, Peripherals Research Analyst at IDC Malaysia said in the
    statement.IDC said Malaysia’s total consumables market (ink cartridges
    and laser toner) reached US$68 million (RM240.7 million) in the third
    quarter of 2006.Laser toner registered 14 per cent sequential growth,
    or US$41 million (RM145 million) in the quarter, while the ink
    cartridge market contributed 40 per cent revenue share, or US$27
    million (RM95.6 million), during the period.Laser toner maintained its
    revenue domination in the Malaysia printer consumables market, which
    made up 60 per cent of revenue share in the quarter.In terms of unit
    shipments, however, ink cartridge took the lead with more than a 83 per
    cent share.