Last week Lexmark reported record revenues of $1.358 billion for the first quarter of 2005, an 8% increase compared to last year.
In market conditions the printer vendor describes as "particularly challenging...as a result of aggressive pricing and soft consumer market demand", supplies drove revenue growth.
The growth is off a high base; Lexmark performed well in 2004, growing sales by 12%. "Our earnings in 2004 grew $4.28 per share, compared to $2.79 two years earlier," says Antonello Cardone, VP of Lexmark`s Consumer Printer Division for the Europe, Middle East and Africa (EMEA) region.
In EMEA, which represents about 36% of Lexmark`s top line, the company is the number-three inkjet printer vendor, with market share of slightly over 19%, according to the International Data Corporation (IDC). This puts Lexmark close behind number-two Epson (23%), but way behind the leader HP (41%).
In SA, Lexmark claims a better market position. It is the second-largest inkjet printer vendor, according to IDC (BMI-TechKnowledge), with a 27% share. However, the number-one HP also has a bigger chunk of the local market share at 57.9%.
The competition in the laser market is more intense. While IDC puts Lexmark as the third-largest competitor in EMEA, its share is estimated at 6.4%, compared to 39.5% for HP and 7.9% for Brother.
"In SA, IDC declares we are the fourth-largest competitor with a share of approximately 6.9%, compared to 48.6% for HP, 7.9% for Ricoh and 7.6% for Konica Minolta," says Cardone.
In the business segment, colour and convergence fuel the demand for printer devices and supplies, he says.
"Everyone acknowledges that colour documents have much more impact on readers than black-and-white documents, but colour printing was once thought to be only an expensive luxury.
"In recent years, the cost premium for acquiring and maintaining a high-quality colour laser printer has come down significantly, making a colour printer much more attractive to a fast-growing set of companies and workgroups.
"Technology now makes it possible for a single device to do so much more than simply print. With virtually no training, users of multifunctional devices can print, scan, copy and e-mail."
Cardone says digital photography is the biggest driver of printer sales in the home segment. "While inkjet all-in-ones, like multifunction printers in the workplace, started changing the home-printing landscape a few years ago, the excitement for the future is focused on the great developments in photo printing. Photo printing has been made easier to do in the home and less intimidating for users to try."
Lexmark wants to "uncomplicated" the photo printing experience, says Cardone, making printers that are "so easy to use, even a child can make great custom prints at home".
The company`s research and development (R&D) investment is focused on expanding the product line to enter and increase the company`s presence in some of the growth segments, such as colour lasers and photo printers. R&D efforts also address ease of use, and improving print management and application software.
Cardone says whatever Lexmark has in the technology pipeline is in line with its pursuit of products and services that simplify processes for every user - from the home to the small business to the large enterprise.
Share