*NEWS*BLOODY RIVALRY IN LOW-END PRINTER

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*NEWS*BLOODY RIVALRY IN LOW-END PRINTER

 user 2007-04-09 at 12:16:00 pm Views: 33
  • #17637

    Bloody rivalry in low-end
    printer space

    A “bloodbath” is how Andrew Seerden at HP
    describes the low-end MFP market.

    A
    “bloodbath” is how Andrew Seerden, general manager for the imaging and
    printing group at HP describes the lower end of the multifunction
    printer (MFP)
    market in New Zealand.The sub-$100 printer market is not profitable,
    according to Seerden, who says
    he is expecting some consolidation in this sector in the near
    future.“The lower end of the market is a bloodbath, with too many
    players and a lot of
    competitors. There will be a migration [of customers] in this market,
    and I
    expect some consolidation in the printer space.”Seerden says that apart
    from printing products, companies like Lexmark and
    Epson have little to offer and will struggle to compete with HP.“Even
    in the retail space, where performance is measured in square feet,
    printers will be a tougher and tougher sell. We have an extensive range
    of
    products, and we can leverage on that fact.”Dell also recently entered
    the MFP market with an entry level model, but unlike
    HP, which has a strong reseller channel, sells its products exclusively
    online
    and has the ability to bundle with home computers. HP has the same
    ability,
    says Seerden, adding the online vendor will struggle to succeed in this
    crowed
    space.
    “I have to say good luck to them. They will need it.”