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 user 2003-12-11 at 10:34:00 am Views: 85
  • #8167

    Laser Cartridge Revenue Will Outpace Ink Jet Cartridge Revenue through 2006

    Shifts within printer installed base affect revenue growth

     Home and Office Markets for Ink Jet and Laser Cartridges: Worldwide Forecast, 2002-2006, a new report from Lyra Research, forecasts that while ink cartridge shipments will grow faster than laser cartridge shipments between 2002 and 2006, laser cartridge revenue will outpace ink cartridge revenue by 2004. The report projects that worldwide laser cartridge revenue will reach $26.3 billion in 2006, compared with ink cartridge revenue of $25.5 billion that same year .

    Given the trends in shipments, one might ask how laser cartridge revenue will surpass ink cartridge revenue. “The answer lies in cartridge pricing,” says Steve Bambridge, principal analyst for Lyra Research Europe. “Lyra expects that the average price for a laser printer cartridge will increase through 2006, while the average ink cartridge price will fall during the same time period. While one might be tempted to interpret the increase in laser cartridge pricing as the result of price hikes, this is hardly the case as there is intense price pressure on laser cartridges as aftermarket suppliers increase their market share. The projected increase in average laser cartridge pricing reflects a shift in the type of laser printers installed.”

    The report points out that when a large number of older, low-end personal laser printers are retired from active service over the 2002-2006 forecast period, they will be replaced by a new generation of lower-cost workgroup printers. At the same time, faster departmental models will replace older workgroup laser printers. As a result, the installed base of laser printers will shift toward newer, higher-performance models that use toner cartridges with higher average prices. Lyra believes that the growing installed base of workgroup and departmental laser printers will drive an increase in average laser cartridge prices that will more than offset the downward price pressure resulting from increased aftermarket penetration.