Desktop Ink Jet Photo Paper Profits Erode
lyra imaging :Although
Lyra expects to see ink jet photo paper shipments increase, significant
price erosion will negate much of the revenue growth. Lyra anticipates
that average snapshot-size photo paper prices will decline by nearly
half between 2005 (20 cents per sheet) and 2010 (11 cents per sheet).
As a result, photo paper revenue will grow at a CAGR of just 2.6
percent over the forecast period. With revenue growth slowing, smaller
vendors may be forced out of the market and the stronger players will
vie for market share. While Lyra forecasts shipments of snapshot-size
photo paper will exceed letter-size shipments in 2005, retail revenue
from snapshot-size photo paper will not exceed revenue from letter-size
paper until 2009. This is mainly because snapshot-size sheets are less
than half the retail price of letter-size sheets. Also, retail prices
for snapshot photo paper will fall more quickly than letter-size photo
paper prices.