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Low scan rate

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DQW Bureau
New Update





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During FY 2005-06, the cannibalization effect started in full swing and had a

strong impact on the shipments of scanners. This trend is not limited to India

only as globally scanners are losing their sheen. Dri­ving this change without

doubt is the multi­function device (MFDs) and their all in one capa­bility in

wooing the buyers to opt for MFDs instead of scanners. The impact was felt to

the maxi­mum extent on entry-level scanners, which once was a thriving market

when printers used to be predo­minantly single function. But since 2003, MFDs

slo­wly started making their presence felt and provided ample pointers of an im­pen­ding

impact on stan­dalone input devices.

According to vendors like HP, slowdown is an inevi­table reality in the

scanner market. While it's reasonable to expect that scanner sales will

plateau, scanning itself will become all pervasive, going from conventional

image scan­ning to hard copying, fax­ing, and document mana­ge­ment

applications.

A look at the shipments over the year indicates volumes heading south. For

instance, during FY 2005-06, according to IDC India, scanner market shipments

stood at 157,873 units valued at Rs 105 crore. This repre­sents a decline of

nine percent in unit terms.

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While the mainstream scanner market faces touch times ahead, the high-end

production scanners have entered a separate market segment.

Share by Volume

2005-06 



HP      





53.7%



Umax  





24.2%



Canon 





11.3%



Microtek         





3.5%



BenQ  





4.9%



Source: IDC India,

2006



 

Scanner Market Size 



           

2004-05          





2005-06          





Units        

Value (Rs crore)



Units        

Value (Rs crore)



174,418          

112             





157,973          

105



The impact of MFDs was

felt the most on entry-level scanners, which once were a thriving market

when printers used to be predominantly single function



MFDs vs Scanners: Value Proposition



When analysts talked about the impending cannibali­zation effect MFDs will

have on single-func­tion output devi­ces, the ass­er­tion was brus­hed

aside as too forw­ard looking. But a look at the scanner market clearly proves

that MFD canni­balizing other output devices has started hap­pe­ning. In the

printer space, inkjets have started facing the onslaught of MFDs. Inkjets, for

instance, that have been pos­ting flat values over the last two years, showed

mar­ginal decline in volu­mes for the first time. Clearly, the current market

dynamics foretell the trends ahead.

For one, vendors will find the going tough in projecting the USP of

single-function devices because with a marginal additional cost, a consumer

would prefer a MFD that can print, scan, and copy. With inkjet MFDs beco­ming

highly affordable over the year with prices brea­ching the Rs 5K mark, a

consumer intending to buy a scanner at Rs 3K might opt for a MFD. Still, ven­dors

are hopeful that ex­clusive consumer needs -including quality output and

special tools to enhance the image - will drive the demand for standalone

devices like scanners.

Shrikanth G



shrikanthg@cybermedia.co.in

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