A "bloodbath” is how Andrew Seerden, general manager for the imaging and printing group at HP describes the lower end of the multifunction printer (MFP) market in New Zealand.
The sub-$100 printer market is not profitable, according to Seerden, who says he is expecting some consolidation in this sector in the near future.
“The lower end of the market is a bloodbath, with too many players and a lot of competitors. There will be a migration [of customers] in this market, and I expect some consolidation in the printer space.”
Seerden says that apart from printing products, companies like Lexmark and Epson have little to offer and will struggle to compete with HP.
“Even in the retail space, where performance is measured in square feet, printers will be a tougher and tougher sell. We have an extensive range of products, and we can leverage on that fact.”
Dell also recently entered the MFP market with an entry level model, but unlike HP, which has a strong reseller channel, sells its products exclusively online and has the ability to bundle with home computers. HP has the same ability, says Seerden, adding the online vendor will struggle to succeed in this crowed space.
“I have to say good luck to them. They will need it.”