Description

The four major printer OEMs (HP, Canon, Epson, and Lexmark) rely on supplies revenue to sustain their revenue and profitability over the long term. OEMs sell many printing products, particularly entry-level models, at a loss and then expect to recoup the lost revenue through supplies sales. In this report, Lyra leverages its deep understanding of ink jet and laser printing market dynamics to provide industry executives and financial analysts with a complete view of OEM supplies revenue and an understanding of the trends that impact OEM profitability. In 2005, both HP and Lexmark derived similar shares of their supplies revenue from sales of desktop ink jet cartridge (53 percent each) and laser cartridges (40 percent and 43 percent respectively). The picture is quite different for Canon and Epson. Laser cartridge sales drove much of Canon's supplies revenue in 2005. Although Canon has a strong presence in the laser printer market, ink jet cartridges accounted for less than one-quarter of Canon's supplies sales in 2005. Epson is second only to HP in worldwide ink jet printer installations and worldwide desktop ink jet cartridge sales but has less of a presence in the laser market. Supplying the Profits: Chasing Cash with Consumables at HP, Canon, Epson, and Lexmark examines each company's 2005 revenue in detail. With over 50 figures and five chapters, the report provides an understanding of the trends that impact OEM profitability. Purchase this report today to find out which vendors have been most affected by the sale of aftermarket cartridges, how much revenue was generated from the sale of color laser versus monochrome laser cartridges, and how much branded media has contributed to each company's supplies revenue.

Table of Contents

Introduction Data Sources for this Report Definitions of Terms Key Findings Business Model Trends Product Segment Trends Profitability Trends Chapter 1: HP and the Imaging and Printing Group HP's Business Segments Net Revenue versus Operating Profit IPG's Supplies Revenue Supplies Revenue by Product Segment Channel Margins Actual IPG Supplies Revenue by Product Segment The Importance of Ink Jet Cartridge Sales Conclusion Chapter 2: Epson and the Imaging and Information Products Division The Imaging and Information Products Division Ink Jet Printers Laser Printers Conclusion Supplies in the Context of Epson's Business The Importance of Ink Jet Cartridges to Epson's Supplies Revenue Margin Erosion, 2003-2006 Chapter 3: Lexmark and the Business and Consumer Products Group Revenue by Business Segment in 2005 Revenue by Product Segment in 2005 Ink Jet Supplies Consumer Division Laser Supplies Business Division All Supplies Revenue Conclusion Where are the Blades? The Impact of Lexmark's Relationship with Dell Chapter 4: Canon and the Computer Peripherals Division Computer Peripherals Division Computer Peripherals Division by Technology Laser Printer Business Canon-Branded versus HP-Branded Products in the Laser Printer Business Segment Laser Printer Business Revenue by Product Segment Ink Jet Printer Business Ink Jet Printer Business Revenue by Product Segment Supplies Sales in Context Conclusion Chapter 5: Vendor Comparisons and Conclusions Worldwide Supplies Revenue Supplies Revenue by Product Segment Desktop Ink Jet Cartridges Laser Cartridges Monochrome versus Color Cartridge Sales versus Hardware Sales Media Supplies in Context Conclusion