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.”