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Original OEM vendors face stiff competition
JAN 2007 ORIGINAL vendors in Malaysia’s laser toner and ink jet cartridge market continue to face stiff competition from third-party suppliers that offer cheaper alternatives, research by IDC Malaysia shows.IDC is a global provider of market intelligence and service for the information technology, telecommunications and consumer technology markets.In its latest quarter report, IDC said the revenue share of original vendors had dropped from over 80 per cent last year to 76-77 per cent in the third quarter of 2006.”These third-party suppliers have consistently improved and developed new technology to catch up with original vendors. The better technology will enhance users’ confidence when using third-party laser toners.”In a few developed countries in Asia Pacific, refilled and remanufactured toners are more popular due to recycling purposes. Malaysia is anticipated to follow the similar trend in the future,” IDC said in the statement.IDC defines third-party suppliers as non-printer vendors who manufacture supplies to be used on the hardware produced by the printer vendors.”Original vendors such as Brother, Canon, Epson, HP and Lexmark face stiff competition in the ink cartridge market as there are several successful local third-party suppliers such as Esy, SaintInk and Imprint that offer low-priced products, which attract users to purchase these compatible products,” Emily Tee, Peripherals Research Analyst at IDC Malaysia said in the statement.IDC said Malaysia’s total consumables market (ink cartridges and laser toner) reached US$68 million (RM240.7 million) in the third quarter of 2006.Laser toner registered 14 per cent sequential growth, or US$41 million (RM145 million) in the quarter, while the ink cartridge market contributed 40 per cent revenue share, or US$27 million (RM95.6 million), during the period.Laser toner maintained its revenue domination in the Malaysia printer consumables market, which made up 60 per cent of revenue share in the quarter.In terms of unit shipments, however, ink cartridge took the lead with more than a 83 per cent share.
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