This Week in Imaging: China Slowdown, Tariffs, Cited for Lower Revenues

This week saw a mixed bag of financial results from Japan-based office-imaging companies, with revenues down for most for Japan’s traditional nine-month reporting period.

Most cited a stronger Japanese yen, which now stands at 1 yen for $0.0091, versus a low, for instance, of 1 yen for $0.0089 in March 2019. Most also cited the effects of U.S. tariffs imposed on products made in China and imported into the United States.

Third, and likely the most critical, was the general slowdown of the Chinese economy, a key market for printer/copier markets. In 2007, China hit a record high of 14.7 percent economic growth, but has been slowing ever since. The Chinese government has forecast more modest growth of 6.7 percent for 2019

However, that’s likely to be lower with the onset of the deadly Coronavirus that originated in the Wuhan, China. Aside from the human toll, the crisis means office-imaging companies – including not only Japanese companies, but HP Inc., Xerox, and Lexmark – are all vulnerable to disruptions in their supply chains for manufacturing printers, MFP/copiers, and their supplies, as well as disruptions to their sales in China. For now, Konica Minolta and Ricoh are delaying re-opening many of their sales and manufacturing in China until February 10th – these operations were first closed in observance of the Chinese New Year holiday that began on January 25th.

How much this crisis will affect the office-imaging companies remains to be seen, but economists already predicting a 1-percent slowdown in China’s economy for its January to March first quarter.

This Week in Imaging

Financial News

Profits Up for Fujifilm, Issues Generally Optimistic Forecast

Sales, Profits Up for Toshiba TEC

Improved Third-Quarter for Sharp

Sales, Profits Up for Toshiba TEC

Epson Reports Mixed Financial Results

Mixed Revenue, Income Results for Brother

Revenue, Income Down for Konica Minolta

Coronavirus

Lexmark, Konica Minolta, Others Issue Directives Concerning Coronavirus

Ricoh Delays Opening of Some Factories in China in Wake of Coronavirus

HP-Xerox

HPE CEO Weighs in on Xerox’s Bid to Acquire HP Inc.

Hardware and Solutions News

Xerox Launches Managed IT Services for SMBs

Konica Minolta Launches AccurioPress C14000 Series

Dealer News

Lexmark Launches New Partner Program

Supplies News

Canon Reports on the Hundreds of Toner Cartridges Removed from Amazon

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