Lexmark notes huge jump in share of printers market

Computer printers maker Lexmark International has noted a huge jump in its share of the Philippine printers market, due largely to the increased used of the Internet as a vehicle for business.

Company officials revealed that from a meager 0.17-percent market share in the third quarter of last year, Lexmark’s share has increased to five percent, based on preliminary figures released by the research group IDC.

Lexmark managing director for ASEAN Ng Chee Soon noted that the company’s success is largely due to its focus on printing solutions, rather than a broad range of products. Around six percent of Lexmark’s revenues each year is spent on research and development.

The company has a manufacturing plant for ink cartridges in Cebu and according to officials, there is no reason why more of the printer parts should not be produced here. A large part of its printers production is done in China and Korea at present.

During yesterday’s news conference, Chee Soon explained that the idea of a ‘paperless office’ is really a myth since the increased use of the Internet translates to an increased demand for in-house printing, especially of colored documents.

He cited a study by Pricewaterhouse Coopers, which showed that paper consumption of an office increases by as much as 10 percent with the introduction of Internet Usage into the business.

Lexmark printers have been in the Philippines for 11 years now, but according to company officials, there was a very significant increase in sales, especially during the last nine months, following their decision to tap Photokina Marketing Corp. as exclusive distributor in the Philippines for its Z-series color jet printers, X-series all-in-one color jet printers, laser printers, and dot matrix printers.

Established 28 years ago, Photokina has since evolved into a diversified business enterprise with major interest in the areas of imaging, food and beverage, franchising, distribution, and information technology. Among its global partners include Agfa, Minolta, Polaroid, Vivitar, Red Bull and GP Batteries.

Around half of Lexmark’s revenues come from the household and small office sectors while the rest is generated by the corporate sector.

Lexmark international has been transformed from an ambitious startup in 1991 to a $4.1-billion enterprise as of the fiscal year 2001. The company has reported compounded annual revenue growth of 16 percent over the past six years.

Officials explained that Lexmark’s long-term growth prospects are fueled by several market and industry trends, including rapid expansion in emerging markets such as Latin America and Asia Pacific, the explosion of color printing in the office, and the impact of the Internet as a vehicle for commerce and a catalyst for increased printing trends.

They also emphasized that unlike some of its competitors, Lexmark develops and owns the technology inside its products, giving the company a competitive edge and allowing it to reduce R&D time between product introductions. This also allows for the timely integration of customer input into product design and development, they added.

An industry trendsetter, Lexmark was the first to market 4800 x1200 dpi and 3600 x 1200 dpi resolutions, develop 1200 dpi lasers and inkjet printers, produce standalone photoprinters, and offer a sub-$100 inkjet printer.

Lexmark unveiled yesterday the new Z-series, aimed at enhancing speed, performance resolution and quality for business and home users."The use of color output among businesses and home users is dramatically increasing. We’re recognized the growing need for higher-quality color output at the SOHO and small business level. As the internet expands the volume of digital information available, our printers allow greater productivity and offer consumer and small business users rich graphic capabilities that are fast and easy to use," according to Lexmark ASEAN production marketing manager Paul Mansell.