Inkjet MFPs grow by 80 percent in H1 of 2002

The market for inkjet multi-functions or all-in-ones as they are so called,
has taken flight in the first half of the fiscal 2002. As per IDC research in
India, the market for inkjet-based Multi Function Peripherals (MFP) has
registered an impressive growth of 79.8 percent in unit terms and 13.5 percent
in terms of value. Altogether, 9,160 inkjet MFPs were shipped in the Indian
market in the first half of 2002 as compared to 5,094 units shipped in the first
half of 2001.

As per IDC's technical definition of the product, a MFP device is a product
that can be connected to a PC and that can do at least two out of the four
document management functions like printing, copying, scanning and faxing.
Besides these basic functions, a multi function device can have additional
features like answering machine etc also.

These devices make the process of document management, in paper and digital
formats a lot easier due to convergence in printing technologies. The wait and
watch approach previously adopted by consumers both in corporate, government and
SOHO markets has given in to an increased acceptance to these machines. As a
result, the market has now been flushed with slew of new product launches from
HP, Canon and Samsung.

A number of vendors are now expediting their plans to enter the market
because of this early evolution of this market. This is because the potential
here comes from fax and inkjet printer markets that are relatively more matured.

Vendors lead by HP have slashed the prices by as much as 25 to 30 percent
that has made the product look increasingly more affordable when compared with
an inkjet printer or a fax. Inkjet MFPs offer both these functions along with
scanning and copying in just one single device. As a result, Inkjet MFP market
has already started cannibalizing into these two markets.

In terms of vendor share, HP dominated the inkjet MFP market and improved its
market share considerably in the first half of 2002 as compared to the same
period last year. Other players operating in this arena are Canon, Sharp, Xerox
and Samsung.

The Inkjet-based multi function products have shown the highest potential for
growth. As per IDC India, the market is expected to grow by another 45 to 50
percent in the second half of 2002 as compared to the first half of 2002. Inkjet
multi function products would continue to increase their share as they are sold
more in the small office/SMB segments, where the potential for growth is very
high.

The adoption of these devices in the home market has also started happening.
The current penetration levels of the PCs being low in these markets, hence they
offer a lot of scope for growth. These segments are price sensitive but hold a
lot of potential for the future. Most of the inkjet-based MFPs are targeted at
these segments. With the prices coming down sharply and awareness increasing,
the growth rates are expected to increase further. Since, these devices play on
space they find usage where space is a constraint and price is a barrier.

Global scenario shows an equally promising future for MFPs, with inkjet-based
MFPs accounting for almost three-fourth of the total worldwide market in unit
terms. The US MFP market exhibited solid growth with inkjet MFP shipments
growing by 58 percent in 2001 as compared to 2000. Most of the MFP growth
emanated from the sales of low cost inkjet products. One factor that contributed
to the inkjet MFP growth was the first time decline of the US inkjet printer
market in 2001. IDC believes that some potential inkjet printer customers may
have opted for multifunctional configuration during the past year.

In the coming years, while the US market is expected to control the highest
percentage of activity in the worldwide MFP market, the greatest growth
opportunities are presented in Western Europe and other regions in the rest of
the world as these geographical areas are less established in the MFP market and
expected to shower much higher growth rates.

Cyber News Service