Multi-function printers slowly killing inkjets

The growth of the networked printer and the onslaught of the multi function printer (MFP) is slowly killing the single-function printer, according to the latest figures published by IDC.

All technologies have a product lifecycle, and the single-function printer looks set to be reaching its end, according to IDC, which expects the market to begin contracting next year.

The market grew by nearly 33 per cent in 2003 but has since collapsed, growing by just 2.2 per cent in volume, and only by 0.9 per cent in terms of revenue this year.

Inkjets, once the darling of the industry, accounted for slightly less than half of all printer shipments in the UAE in 2004 but, due to razor thin margins and low prices, the form factor made up just over a fifth of revenue. Mono laser printers, by contrast, amounted to 36.7 per cent of shipments and just under 49 per cent of revenue last year. The colour laser segment was the most dynamic, expanding by 38.4 per cent in shipments, "but it started from a very small base".

"Colour laser printers will stay hot for the foreseeable future," says Naser Sha'sha'a, senior analyst at IDC CEMA. "But the rest of the single-function printer market is on its last legs in terms of growth.

"After this year, demand for mono lasers will be flat and then start to drop along with the rest of the market as users start buying MFP," he said.

There has been no change in which companies dominate the sector HP, Epson and Canon ranked in that order accounted for 93 per cent of the total printer market. With a shift to laser printers and MFPs it will be interesting to see whether new players such as Xerox or Lexmark can muscle into the top three. While dealers and resellers remain vital for printer sales in the UAE, IDC noted a shift in distribution and marketing patterns.

"Vendors increasingly need shelf space in retail outlets, where a lot of home users and small office users now shop. Making sure their models and logos are visible will help vendors ensure loyalty and new customer acquisition as users begin to migrate to MFPs," Sha'sha'a told Gulf News.