Xerox Completes A4 Printer Engine Transition by Embracing Lexmark’s (Chinese) Technology.

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Xerox Completes A4 Printer Engine Transition by Embracing Lexmark’s (Chinese) Technology.
Xerox, one of the world’s leading providers of printing and document solutions, has announced that it has completed its transition of its A4 laser printers and multifunction devices (MFPs) to models that are based on Lexmark engines. This means that Xerox is using Lexmark’s technology to power its devices, instead of developing its own.

Xerox made this decision to save costs and focus on other areas of its business, such as cloud services and software solutions. According to Xerox, this move will allow it to offer more value and innovation to its customers, especially in the small and medium business (SMB) and work-from-home (WFH) markets, where the demand for A4 devices is growing rapidly.

Xerox started this transition in 2021, when it introduced some A4 color and monochrome devices for the home-office and small-business market. It continued to add more Lexmark-based models to its B-Series, C-Series, and VersaLink product lines throughout 2023. By February 2024, Xerox had completed its transition of its entire A4 portfolio to Lexmark-based models.

Some of the benefits of this transition for Xerox are:
It reduces the need for Xerox to invest in its own hardware research and development (R&D) and manufacturing, which can be expensive and risky. It allows Xerox to leverage Lexmark’s expertise and innovation in the A4 segment, which is growing faster than the A3 segment. It enables Xerox to offer more competitive prices and features to its customers, such as wireless connectivity, cloud integration, and security enhancements. It strengthens Xerox’s partnership with Lexmark, which is also a major supplier of toner cartridges and chips for Xerox devices.

Some of the challenges of this transition for Xerox are:
It reduces Xerox’s differentiation and brand identity in the A4 market, as its devices are essentially rebranded Lexmark products. It increases Xerox’s dependence on Lexmark, which could pose a risk if Lexmark faces any supply chain disruptions or quality issues. It exposes Xerox to potential legal disputes or patent infringements, as Lexmark has been involved in several lawsuits with other original equipment manufacturers (OEMs) and aftermarket suppliers.

Xerox claims that this transition will not affect its existing customers or service partners, as it will continue to support and service its legacy A4 devices. Xerox also says that it will still offer some A3 devices that are based on its own technology, as well as some high-end production printers and digital presses. Xerox hopes that this transition will help it achieve its strategic goals of increasing its revenue, profitability, and market share in the printing and document industry, as well as expanding its presence in the cloud and software sectors.

[Author]

February 13, 2024 at 3:36 PM