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APEJ printer consumable market declines

Anuradha Shukla | March 12, 2014
Market impacted by political turmoil in Thailand

The printer consumable market in the Asia/Pacific excluding Japan (APEJ) has declined, according to a newly released report by IDC.

Political turmoil in Thailand has made a significant impact on this market that declined 2.4% sequentially and then went down 4.6% year-on-year to reach US$1,652.14 million in the fourth quarter of 2013.

Political instability has affected channels and consumers' business sentiments in Thailand that led to quarter-on-quarter decline of 30% and year-on-year decline of 20%.

Although the printer consumable market has declined in certain regions it has posted growth in large economies like the PRC, South Korea and Indonesia.

Third party brands contribute about US$370 million out of the total consumable market.

Third party vendors

Third party vendors are gaining share in laser toner market in Thailand. These vendors are expanding their footprint both within and outside the nation.

"Third Party vendors are now changing their business model and emerging as solution providers rather than merely box-pushers," said Pankaj Chawla, research manager for IPDS Research at IDC Asia/Pacific. "Third party vendors are offering free printers, printers on rent, printers' maintenance and repair services along with printer cartridges."

Original equipment manufacturers (OEMs) are gaining market share in ink cartridge market because of economic and high yield ink cartridges. OEMs are also eyeing the laser tone market and offering managed print services for their channel partners.

Despite this rapid expansion there is significant price gap between OEM toner cartridge and third party toner cartridge. Asian consumers are price sensitive and this has led to the increased popularity of third party vendors amongst consumers and commercial enterprises.  

"Third party vendors are also entering in BPS/MPS (Basic Managed Print Services) business and offering solutions like pay per page, pay per cartridge and volume commitment options. Some other third party vendors are scaling up their business model by partnering with software vendors and offering remote operating of printers through MPS," added Chawla.



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