IDC Finds OEM Vendors Pulling Share from Third-Party Vendors for Ink Cartridges in Asia/Pacific

ink and toner cartsMarch 12, 2015 – International Data Corporation (IDC) reports that the printer-consumable market in the Asia/Pacific region excluding Japan (APEJ) declined 0.5 percent sequentially. but increased 4.0 percent year-over-year to reach US $1,729.65 million in fourth-quarter 2014.

Out of the total consumable market, third-party (non-OEM) brands contributed nearly US $392 million, which is approximately 23 percent of the total value. IDC says the Asia/Pacific market is witnessing a decline in shipments of ink cartridges, and as a result, revenue from ink cartridges has declined as well. However, the laser-toner market still recorded growth in revenue.

“Looking at the inkjet space, OEM vendors have launched inkjet-hardcopy peripherals (HCPs) that offer greater page yield at a low cost per page (CPP). This strategy has helped OEM vendors, as low-priced original ink made third-party ink products a less attractive option. As a result, the overall shipment and share of third party-products has declined. However, this strategy has also affected ink revenue of OEM vendors, as high-yield ink cartridges are economic as compared to standard cartridges,” commented Pankaj Chawla, research manager for IPDS Research at IDC Asia/Pacific.

In the laser space, overall market continues to record growth, but this growth is driven by third-party vendors. In recent times, OEMs have increasingly focused on the Asia/Pacific market and recorded growth in shipment of HCPs, which has catalyzed the growth of installed base of HCPs. But IDC say this growth in the installed base didn’t help OEMs, as price-sensitive small and mid-size businesses (SMBs) and small- and home office (SOHOs) prefer economic third-party products over higher-priced original toners.

Moving forward, IDC believes that laser toner market will witness intense competition between OEM and third-party products. Though OEMs are losing share as a part of total unit shipment, their share in revenue is still over 60%. Third party vendors are focusing on growing their revenue by launching high-end products (color toners, high-speed HCPs). Third party vendor are also changing packaging of their products to target developed market and quality cautious commercial enterprises. These better packaged products are also helping third-party vendors to sell their products through modern retail and also through online channels.

idc asia pacific printer consumables marketFor more information about this IDC research, or to purchase this data, contact IDC’s Sheryl Fuertez at +65-6829-7758 or sfuertez @idc.com.

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