18 Jun 2018
SYDNEY, June 18th, 2018 – The Australian hardcopy peripherals (HCP) shipments fell 8.8% year on year (YoY) in the first quarter of 2018 to 446,000 units, according to the IDC Asia Pacific Quarterly Hardcopy Peripherals Tracker. Both laser and inkjet markets have contributed to the decline, reducing 8.6% and 9.3% YoY respectively.
The laser printing industry continues the downward trend, which was primarily driven by the sales volume loss of low price-band models. Combined shipment of copier-based and printer-based laser declined by 8.8% YoY, while fax-based laser fell sharply (-72.1% YOY) and its share is now less than 0.3% in the laser market, evaporated two-third in a year.
Most key players displayed a negative YoY performance in varying degrees during 2018Q1, as shown in Figures below.
For inkjet printers, Canon dropped over one-fifth of its shipments since 2017Q1, as their focus shifted higher value models. Brother and HP Inc. filled the gap left by Canon, increased their inkjet market share by 1.2% and 2.8% respectively.
For laser peripherals, Fuji Xerox experienced a decline of 30% as they are still trying to recover from top-level executive and board resignations after the accounting scandal. HP Inc., Ricoh and Kyocera Document Solutions were consistent with the shrinking market. Brother, in contrast, took share from competitors and posted positive YoY growth of 6.5%, hence strengthening its position in the laser market.
Below are some other notable highlights from 2018Q1
Top brands are shifting focus to higher-end models
"As the print space in Australia reaches saturation, brands try different tactics to enhance market share. Some have changed strategy to reallocate resources to high end products to help improve profit" says Jimmy Li, Associate Market Analyst at IDC Australia. In Australia, top 5 HCP brands dominated over 94% of the entire market. IDC research found that shipment units of those models with relatively low speed or low price had significantly decreased over the past two quarters; colour laser printers in 1-20 ppm speed range recorded a 51.3% YoY decline, whilst mono laser shipments decreased 19.9% YoY. Similarly, Inkjet models priced <AUD$131 (i.e. <USD$100) dropped by 13.5%YoY.
Single-function printers are slowly taking share from Multi-function printers
An abnormal phenomenon was noticed in the past quarter, showing that laser multi-function peripherals declined more and recovered slower than single function. By the end of March, SFPs had occupied 46.6% in the laser market which was a 1.6% YoY growth.
Kyocera is trying to narrow the gap
Kyocera Document Solutions experienced positive performances over the last year. When others suffered, it managed to not only maintain but also snatched share from others. Kyocera enjoyed a 24.0% YoY increase in copier-based laser, together with a long-term shipment expanding for print-based laser units. The key point of the sales strategy was to award resellers / dealers well for their great and loyalty seems to have worked.
The 2018 HCP forecast still shows downward trend in Australia, for both inkjet and laser markets. Brands will focus on maintaining profitability in inkjet space and compete on click charge to keep market share in laser market.
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