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Sharp Cuts Xerox Off
By Andy Slawetsky, President, Industry Analysts, Inc.
Industry Analysts, Inc. has learned that Sharp Electronics has terminated their agreement with Xerox’s Global Imaging (GIS). The contract will end on November 26, 2012. After that date, GIS will no longer be able to purchase Sharp hardware and accessories.
Sharp will continue to provide supplies and parts to GIS for the foreseeable future but they have eliminated discounts. According to Rich Boomsma, Senior VP of Sales at Sharp, Sharp has “agreed to provide supplies and parts at an increased cost <to GIS>.”
The recent news about Sharp Electronics has been pretty bad to say the least. This seems like an interesting move and makes me wonder how dire are things at Sharp’s business products unit truly are if they are able to leave money on the table and cut Xerox off like this.
For a company that is rumored to be exiting the the office equipment business, Sharp seems to be moving ahead at full steam. In fact, Sharp has been very busy with R&D efforts on forthcoming products and has been signing on new dealers at the fastest rate we’ve seen in years (maybe ever), adding several new dealers in just the last six weeks, including, 3Point Technologies, Southern Duplicating, Alpha Laser, Hansen Associates, Inc., Pronet Image and Information Technology and Malone Office Environments.
If Sharp is really on their way out, someone should probably tell the people in Mawah NJ because they seem to have missed that memo. While they may be dealing with a challenging financial situation, Sharp’s business products group doesn’t appear to be going anywhere.
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