INKJET PHOTO PAPER PROFITS ERODE

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INKJET PHOTO PAPER PROFITS ERODE

 user 2006-08-03 at 12:12:00 pm Views: 81
  • #16036

    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.