This Week in Imaging: Weak Global Economy Hits Japan Copier Vendors; Epson, Brother Look to Office

Photo credit: Kathy Wirth

You just know this was going to happen if a deal involves Carl Icahn:

Nonetheless, we think it’s a good idea. Separating Xerox’s venerable imaging division from its more dubious ATM card/red-light-ticket business makes good sense. Smaller companies generally mean more nimble companies that are better able to respond to market conditions and customer demand.

It’s been two shaky weeks of financial news, with this week Japan vendors reporting slowing sales and revenue. Most point to an overall weakening economic conditions and weaker China economy. Japan vendors haven’t also been helped by a Japanese yen that has become stronger, erasing Japan vendors’ competitive advantage overseas.

We feel there’s no magic potion, but that the action is probably at the upper (production) and lower A4 color MFP/All-in-One ends of the spectrum. Perhaps vendors should take a hard look at their prevailing methods of distribution and significantly change them upward (or downward), as well as focus on non-BTA entry-level office models.

In a reversal, a German court will permit HP to sell PageWide XL printers in Germany that were blocked because of a Memjet lawsuit. Don’t forget that a German court also blocked the sale of Samsung’s Galaxy Tab 10.1 tablet due to suspected patent-infringement. So it seems German courts are more sympathetic to patent-holder stakes claims than perhaps in the United States – where products such as the blatant Chinese iphone knockoff below are easily sold. Memjet can appeal the reversal.

Both Brother and Epson are actively beating the bushes from the ground up, hoping to shake loose any offices that aren’t committed to a relationship with their local copier dealer. First it was Epson with its super-economical and upscale MFPs with high-capacity RIP ink packs. Now here comes Brother with much-more business-focused high volume laser printers and MFPs. Meanwhile, both of vendors have demonstrated a commitment to lower CPP and TCO via innovative technology and supply pricing as can be seen in our recent study. Other traditional copier vendors need to be aware that both Epson and Brother are working from the bottom of the market upwards – which is natural as the consumer end contracts – and are working hard to expand into mid-size and even large offices.

You just knew that this was coming. Anybody who has been around the industry long enough can cite the perils of ozone (emitted by laser-based copier/MFPs), and solvent-ink used by commercial printers. Now, researchers have discovered that you should be 3D-printing in a well-ventilated room or use an enclosed printer with a vent, particularly while printing with ABS filament, nylon, and similar materials. The news is sure to warm the hearts of Graingers shareholders.

Office-Imaging News

Xerox to Split into Two Companies, One Devoted to Printers, Copiers, Other to Business-Process Outsourcing – Read more here.

Third-Generation Canon imageRUNNER ADVANCE MFPs Feature Standard Secure HDD, Updated Touch Screen, User-Authentication Options – Read more here.

New A4 Color Copier/MFPs from Kyocera with ‘Only Pay for the Color You Print’ – Read more here.

Nuance AutoStore 7.0 Now Available for Kyocera HyPAS-Enabled Copier/MFPs – Read more here.

New Ricoh SP C435DN Desktop Color Laser Printer for Bringing Color Print Jobs In-House – Read more here.

New ‘Business-Focused’ Higher-Volume Laser Printers and All-in-Ones from Brother – Read more here.

Financial News

Slight Dip in Profits for Ricoh’s Nine Months; Strong Sales of Production Printers – Read more here.

Difficult Fourth Quarter for Xerox, But Surge in Entry-Level Color A4 MFP Sales – Read more here.

Earnings up for Epson’s Third Quarter, but Down for Last Nine Months; Forecast Unchanged – Read more here.

Loss for Sharp’s Nine Months; Business Solutions’ Sales Steady – Read more here.

Slower Quarter for Kyocera; Income Forecast to be 22.3-Percent Lower Versus Previous Fiscal Year – Read more here.

OKI Struggles through Difficult Quarter, but Forecast Unchanged – Read more here.

Legal Briefs

German Court Lifts Injunction Barring HP from Selling PageWide XL Printers in Germany – Read more here.

Acquisitions

Sharp Expanding Direct Sales in Texas with Acquisition of Meridian Office Systems – Read more here.

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February 2016