RICOH ENTERS INKJET SPACE

[Anonymous]

Ricoh Enters Inkjet Space with Low-Cost GelSprinter
May 2005.

Ricoh announced a new line of speedy, full-color
printers that use quick-drying ink and have duplex capabilities as a standard
feature:

• The G700 prints 20 pages per minute (ppm) for single-sided documents and
  costs $449.
  
• The G500 prints 19 ppm for single-sided documents and costs $329.
  

Duplex documents print at 85 percent of the speed of single-sided printing.
These models are targeted at the business inkjet market. They have already been
released in Japan and are scheduled to go on sale in the United States in July.
Multifunction configurations of these machines are scheduled to ship in late
2005 or early 2006.

Analysis

These units are decent but unspectacular entrants into the market. Ricoh has
introduced them in the hope of getting a cut of the lucrative and growing
supplemental office print market. Gartner has long warned enterprises about the
high cost of inkjet printing, but HP, Lexmark and Epson have all benefited
greatly from its persistent use. Ricoh will need to improve if it hopes to
displace these other providers.

In the standard mode, the GelSprinters do not produce very dark blacks, and
their colors are not as vibrant, but Ricoh says that this print quality is
intentional. The GelSprinters are meant in part for duplex printing jobs, and
heavier ink applications would bleed through the paper, destroying the image on
the other side.

Ricoh has seen some success with these printers in Japan. Ricoh shipped 4,200
A3 models, which can use 11-by-17-inch paper, in 1Q05 alone. Ricoh holds the top
spot in the business inkjet printer market in Japan, with 38,100 machines
shipped in 1Q05.

These printers probably will find a home in Ricoh’s direct and dealer
distribution channels as bonus models “thrown in” as part of a larger deal to
encourage placements and the sale of aftermarket supplies. More modest shipments
will occur in Ricoh’s two-tier and printer distribution channels.

Recommendations

• Small and midsize business customers: Consider the lower cost (two
  cents per page for black and six cents for color) and duplex features that these
  units offer.
  
• All customers: Use these units only for general office applications,
  such as text and graphics, not for photo printing.

[Author]

May 31, 2005 at 9:40 AM