The Analyst Corner

Even the Mighty Must Bend in the Wind: HP's Printing Sales Model Update Part 2

John McIntyre

by John McIntyre | 07/12/2016

That giant sucking sound you hear in the imaging supplies channel is $450M in HP printer supplies being sucked out of the distribution pipeline as HP re-engineers its supplies marketing strategy in an update to its printer sales model” announced on June 21 (read Part 1 of this series here). By a rough estimate, HP reduced supplies channel inventories by about 25 percent, an unprecedented move in the history of the imaging supplies channel to our knowledge. Yes, this is a big deal, and its effects will ripple through the rest of the industry and the other OEMs for some time. The 25 percent reduction in channel inventories will bring HP’s pipeline from an average of 6- 8 weeks to 4-6 weeks, or roughly a one month supplies inventory ballast. There are numerous possible facets driving this tectonic shift, and we will have to speculate about many of them.

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Toshiba LEAD 2016: Style Meets Substance

Patricia Ames

by Patricia Ames | 07/10/2016

When a dealer announces the launch of 23 new MFPs before its annual dealer meeting even kicks off, your expectations are automatically raised. Such was the case with Toshiba, which issued a press release announcing the new hardware the morning of its LEAD event — its annual conference for dealers and end users, held in Las Vegas May 16-19.

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HP's Printing Sales Model Update: It's Only $450 Million

John McIntyre

by John McIntyre | 06/23/2016

On June 21, HP Inc., in what the company billed as an “Update [to] Its Printing Sales Model,” announced that it was taking a charge of $225M in both Q3 and Q4 of this year – about $450M in total – that reflects a move to reduce channel inventory of printer supplies; essentially the company is taking back/buying back almost one-half billion dollars in supplies from its channel partners. In Q2, the company reported $3,099B in supplies sales, continuing a declining sales trajectory that has been quite evident:

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Is A4 Finally the Homecoming King?

Patricia Ames

by Patricia Ames | 06/20/2016

Lexmark unveiled a slew of new equipment at their recent dealer event in Ft. Lauderdale , FL and showcased an impressive array of workflow solutions from their Kofax and Readsoft brands. If you’d like to read more about solutions, Senior Analyst Amy Weiss does an excellent job of covering Lexmark’s flagship TotalAgility refresh in Workflow here, and if you haven’t read my interview with former Kofax CEO and current VP of Lexmark International and President of Lexmark Enterprise Software Reynolds Bish, take a look – he’s at the forefront of their digital transformation efforts.

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Marketing Printing, Not Printers – HP Software Enhancements Improve Mobile, Security, Chromebook Integration, MPS Tools

John McIntyre

by John McIntyre | 06/13/2016

In HP’s recent Q2 earnings conference call, President and CEO Dion Weisler commented on “the work we are doing around marketing to stimulate printing demand. We are shifting our marketing efforts from marketing printers to marketing printing.”

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Kyocera’s FY 17 Dealer Meeting: Applications and Acceleration

Amy Weiss

by Amy Weiss | 05/24/2016

Here’s a fact: You’re not going to attend a dealer meeting and hear doom and gloom, negative stories and “we are not launching any new products this year.” Dealer meetings are, by nature, positive, exciting, and full of new ideas and product launches that will pump up the dealers and create enthusiasm over the year to come.

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Hard Copy Makers Speak in Unison: Business Ain’t Great, and the Outlook Isn’t Much Better

John McIntyre

by John McIntyre | 05/12/2016

If you have spent any time reviewing the latest quarterly and/or annual financial reports from almost all the major OEMs in the printer/copier industry, you can’t help but be affected by the overall downbeat performance shown by these companies – and their less than enthusiastic comments about what the future may hold for their firms.

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A Tale of Two Xeroxes

John McIntyre

by John McIntyre | 04/26/2016

The imaging and printing industry is undergoing a period of profound transition, a transition driven by seemingly irreversible technological shifts in the principal business model which has served the industry for half a century. Among many, the changes include:

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Yes Virginia, It’s True: Lexmark Acquired for $3.6B by Consortium of Apex and PAG Asia Capital

John McIntyre

by John McIntyre | 04/20/2016

Rumors suggesting that Lexmark was being pursued by Apex Technology Co., the same company that bought Lexmark archenemy Static Control last year, have percolated since April 7 from numerous sources. The reports were discounted by many in the printing/imaging industry because the move was seen as an odd fit – a major printer hardware OEM being acquired by a company known principally for producing components for aftermarket ink and toner makers. At the same time there were also reports that Lenovo expressed interest in acquiring Lexmark, a move that would reunite two substantial ex-IBM divisions under Chinese ownership.

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Foxconn and Sharp Finally Come to An Agreement; Has Sharp Dodged a Bullet?

The Imaging Channel

by The Imaging Channel | 03/31/2016

John McIntyreby John McIntyre | 3/31/16

The on-again, off-again union of financially ailing Sharp Electronics of Japan and Taiwan-based contract manufacturing giant Foxconn was finally agreed to on March 30, months after an initial agreement was reached in principle. Inking the final deal came after weeks of wrangling over details of the actual fiscal standing of Sharp – which revealed a company far worse off than originally presented — and thus, how much Foxconn was willing to pay.

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HP’s Spring Launch Part 3: In the Shadow of the PageWide Debut, New OfficeJets and LaserJets Bow

The Imaging Channel

by The Imaging Channel | 03/25/2016

John McIntyreby John McIntyre | 3/25/16

In Part 1 of this series we looked at HP’s rationale for rebranding its page-wide devices, and in Part 2 we took a deep dive into those new releases. But while the floodlights and the red carpet were being rolled out for the PageWide coming out party, HP also released a number of new Officejet and LaserJet models, brands that have been essential “meat and potatoes” products in HP’s line for decades. Before we take a look at the new models, here is an update to HP’s positioning and messaging for these two major business printer lines:

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HP’s Spring Launch Part 2: A Look at the New PageWide Products

The Imaging Channel

by The Imaging Channel | 03/23/2016

John McIntyreby John McIntyre | 3/21/16

In Part 1 of this series we looked at HP’s rationale for rebranding its page-wide devices. Rebranding movement aside, however, the spring launch event was all about new HP printing products – PageWide, OfficeJets, and, LaserJets too. Under the broad banner of “Printing Reinvented,” the firm introduced:

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HP’s Spring Launch Part 1: What’s in a Name? Business Inkjets Relaunched, Rebranded

John McIntyreby John McIntyre | 3/21/16

In the high tech biz, we have become accustomed to observing a new product technology capability debut and swiftly create a tsunami of disruptive change, often resulting in the upending of a long dominant and established product category. The elements in driving this market transformation are often easy to discern; benefits over the more mature technology such as speed, price or operating costs, functionality, usability and durability, among others. In most categories, the advent of a new offering with significant benefits makes choosing the new entry an easy and apparent decision; a “no-brainer” in everyday vernacular.

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This is Not the ‘Old’ Xerox: Apps, Automation and the IoT Are a Big Part of the Company’s Future

Amy Weissby Amy Weiss | 3/14/16

On March 9, Xerox hosted its 2016 Office Technology Event at the Gil Hatch Center in Rochester, N.Y., where it unveiled a slew of new hardware, software and innovations to the gathered press and analysts. An announcement of 14 new ConnectKey i-Series MFPs was the mere tip of the iceberg at the event in which Xerox demonstrated that it is an organization with its eyes solidly on the future.

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HP Inc. Ups the Stakes When It Comes to Printer Security

by Amy Weiss | 3/7/16

Once upon a time, printers were printers and very little more. They sat on people’s desks, they connected to a computer, and they printed. Those days, however, are for the most part long gone. While standalone printers exist, forces such as print and document management programs, the smart MFP and the Internet of Things have combined to ensure that today’s workplace print devices are connected, networked, and accessible to workers in various areas inside and outside the office, from both desktop and mobile devices.

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Lexmark’s Q4 and FY15 Report – a Microcosm of the Industry’s Maladies

John McIntyreby John McIntyre | 3/1/16

Exercising reasonable due diligence on behalf of its readers dictates we at the Imaging Channel scrutinize the quarterly and annual financial reports of the key firms in our industry and interpret what the results might mean for the channel and the overall market. Sometimes, an analysis of these announcements provide us with a clear and unvarnished view of the state of the industry. Lexmark’s recent Q4 2015 report is one of those state of the industry revelations. It is difficult to review the Lexmark earnings release in isolation when several major OEMs in the industry are awash in news of mergers, divestitures, acquisitions, and shifts in strategy.

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Canon’s Latest uniFLOW Software: Yet Another Sign of a Digital Future?

The Imaging Channel

by The Imaging Channel | 02/04/2016

by Amy Weiss | 2/4/16

On February 2, Canon U.S.A. announced the release of the latest version of its output management, device management and smart scanning solution, uniFLOW V5.4. The new version of Canon’s software offers one integrated platform for print, scan and device management, improved scanning and mobile printing, and enhanced office printing.

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Déjà Vu: Xerox Announces Plans to Split in Two

The Imaging Channel

by The Imaging Channel | 01/29/2016

by Amy Weiss | 1/29/16

On January 29, 2016, Xerox announced its fourth quarter earnings as well as its plans for separating into two independent, publicly traded companies. Needless to say the latter, which was leaked by theWall Street Journal the night before the official announcement, somewhat eclipsed the former.

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Brother’s Big Laser Launch Targets the Workgroup

The Imaging Channel

by The Imaging Channel | 01/27/2016

by Amy Weiss | 1/27/16

On January 20, Brother International released a series of monochrome laser printers and all-in-ones for office, workgroup, and higher-volume print environments. The launch, which is a refresh of the firm’s laser product line, is said by Brother to be the largest and most in-depth in the company’s history.

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Muratec America Enters Label Printer Market

The Imaging Channel

by The Imaging Channel | 01/20/2016

by Amy Weiss | 1/20/16

On January 15, Muratec America announced its entry into the label printer market with a series of digital presses designed for short-run, high-definition color labels. The Precision Label Series (PLS) consists of the PLS-2112 digital press and PLC-2112F digital finishing system, and the PLS-5150 digital press and PLS-5150F digital finishing system.

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