IS LEXMARK GOING TO SHUT DOWN IT'S INKJET BUSINESS ?

  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • banner-01-26-17b
  • 161213_banner_futorag_902x177px
  • ink-direct-banner-902-x-177-v-1-2-big-banner-03-23-2017
  • 4toner4
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • futor_902x177v7-tonernew
  • Print
  • 2toner1-2
Share

IS LEXMARK GOING TO SHUT DOWN IT'S INKJET BUSINESS ?

 user 2011-01-10 at 8:44:20 am Views: 65
  • #23958

    http://www.action-intell.com/2011/01/06/1280/

    IS LEXMARK GOING TO SHUT DOWN IT’S INKJET BUSINESS?
    Lexmark Surprises Channel by Increasing Inkjet Cartridge Prices
    Actionable
    Intelligence has learned that earlier this week Lexmark raised the
    price of certain inkjet cartridges. The increase included pricing on the
    new Lexmark 100 and 100XL ink tanks, which are used in the Vizix
    machines. According to our information, the price increase was not
    expected. Some retailers did not learn of the high prices from their
    distributors until after the price increase went into effect on January
    3. It is not clear if Lexmark has increased prices for others products
    such as hardware or toner cartridges.

    Lexmark raised prices from
    about 5 to 15 percent on over 20 of its inkjet cartridges and tanks. The
    new 100 and 100XL tanks experienced the sharpest increases—between 10
    and 15 percent. Despite an advertising campaign claiming that Vizix
    machines offer some of the lowest printing costs in the industry, most
    of the models in Lexmark’s new line of inkjet all-in-ones are some of
    the most expensive to operate. Now, with higher-priced cartridges, those
    operating costs are even higher. We should point out, however, that we
    have not heard that Lexmark raised the price of its 105XL tank. It
    continues to retail for about $5, so machines that accept this tank can
    print a black-and-white page for under a penny.

    We view Lexmark’s
    sudden move with great interest and wonder if it may be a sign of
    things to come. We’ve seen the price of other inkjet products increase
    recently as oil prices rise (see News Briefing, “Sun Chemical Raises Ink
    Prices”), which is reminiscent of a similar occurrence in the second
    half of 2008. At that time, OEMs announced they would implement price
    increases on both hardware and consumables after months of higher oil
    prices. The announcements led to the channels stuffing warehouses with
    lower-cost products ahead of the price increases. OEMs watched in horror
    as orders vanished when the economy tanked and demand evaporated early
    in 2009. Inventory levels in the channels remained high, which resulted
    in supply-chain nightmares for many OEMs including Lexmark.

    With
    the price of oil beginning to climb, we wonder if Lexmark may be in the
    vanguard of hardware manufacturers raising prices. If that’s true, it
    will be interesting to see if Lexmark’s competitors use the same tactic
    of raising prices without warning to avoid any channel stuffing.
    Moreover, we will be watching to see if prices increase for hardware and
    toner supplies to keep pace with the growing price of a barrel of
    crude.

    As an aside, we must wonder if Lexmark’s move to higher
    inkjet cartridge prices will be unique to the company. Could it be that
    the firm is attempting to grab as much revenue as possible from its
    inkjet line before it pulls the plug on the business? The firm announced
    last year that it was restructuring to combine its inkjet and laser
    businesses (see News Briefing, “Lexmark Combines Laser, Inkjet Printing
    Divisions into Single Organization”). After seeing inkjet sales wither
    for a number of years, many industry watchers wondered if  the
    reorganization signaled the end of the road for Lexmark’s ailing inkjet
    business. A sudden increase in cartridge prices may be a sign that the
    company plans to maximize revenues before it turns the lights out in the
    inkjet factory.

    http://www.action-intell.com/2011/01/06/1280/