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Xerox is No Longer an OEM, Now They are a Large Dealer, According To an Industry Insider.
In a significant shift within the printing and digital document industry, Xerox, a company long recognized as an original equipment manufacturer (OEM), has reportedly transitioned to functioning primarily as a large dealer. This development, according to an industry insider, marks a pivotal change in the company’s business model and strategy.Historically, Xerox has been synonymous with innovation in the printing sector, having introduced the first commercial photocopier and subsequently establishing itself as a leading OEM for office printers and multifunction devices. However, recent market trends and shifts in consumer demand have prompted the company to reevaluate its position.
The insider, suggests that Xerox’s move away from manufacturing is a response to the evolving landscape of the industry. With the rise of digital documentation and a decline in traditional printing, companies are finding it increasingly challenging to sustain profitability through hardware sales alone.
As a dealer, Xerox is now poised to focus on distributing a wide range of printing and document solutions, including those manufactured by other companies. This approach allows Xerox to leverage its established brand and extensive distribution network to offer a more diverse portfolio of products and services.
The transition is also seen as a strategic move to capitalize on the growing market for managed print services (MPS) and document management solutions. By operating as a dealer, Xerox can provide comprehensive MPS offerings that encompass hardware, software, and services, catering to the needs of businesses seeking to optimize their printing infrastructure and document workflows.
While Xerox has not publicly confirmed the details of this transition, the insider’s revelations have sparked discussions about the future direction of the company and its impact on the broader industry. If true, Xerox’s shift from OEM to dealer could signal a broader trend among traditional manufacturing companies adapting to the digital era’s demands.
The company’s recent financial maneuvers, including tender offers for senior notes due in 2024 and 202512, and statements regarding updates to its organizational structure3, suggest a reorientation of its business priorities. However, the full extent of Xerox’s transformation and its implications for customers, partners, and competitors remain to be seen. This article is based on information provided by an industry insider and has not been independently verified. It reflects the current understanding and speculation regarding Xerox’s business strategy.
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