AIOs Displace Single-Function Printers in Latin America

Transcription

1 ` Market Analysis AIOs Displace Single-Function Printers in Latin America Abstract: Stand-alone printer shipments have dropped sharply, while inkjet all-in-one printers continue to gain market share in Latin America. By Federico De Silva León Strategic Market Statements All-in-one (AIO) revenue in 2002 totaled $94 million, representing 8 percent of the printer market. Single-function inkjet printer revenue totaled $581 million in 2002, a 27 percent decline, and page printer revenue dropped 15 percent, totaling $476 million. In Latin America, Samsung first gained market share in Mexico and is now gaining market share in Brazil, Colombia and Peru. Dell's entry into the printer market will be limited to Mexico and to the professional segment. Publication Date: 31 March 2003

2 2 AIOs Displace Single-Function Printers in Latin America AIOs Soften Decline of Overall Market Impacted by weak demand in Argentina, Brazil and Mexico, single-function printer shipments in Latin America declined 18.2 percent during the fourth quarter of 2002, resulting in a 24.1 percent drop in revenue. Shipments of single-function printers reached 1.36 million units, while revenue totaled $302 million during this period. Shipments of inkjet printers totaled 1.13 million units, a decline of 20.6 percent year over year. Page printers posted no change compared with the same period of 2001, totaling 141,393 units and growing only 0.1 percent. Dot matrix printers declined 9.9 percent year over year, reaching 90,122 units. Overall printer shipments, including AIO, totaled 1.49 million units in the fourth quarter of 2002, representing an 11.9 percent drop from the previous year. Revenue totaled $339.7 million for the quarter, an 18 percent drop from the fourth quarter of While single-function printer shipments, particularly inkjet printers, continue to show weakness in the Latin American market, AIO inkjet printers gained momentum in recent quarters. AIOs are taking market share away from single-function inkjet printers. During the fourth quarter of 2002, AIOs represented 12 percent of inkjet printer shipments and 9 percent of overall printer shipments. Falling prices, better product offerings and increasing consumer awareness of AIOs have produced good results for printer vendors (see Table 1). Table 1 Quarterly Printer Shipments by Product Type in Latin America, 4Q01-4Q01 Market Share (%) Growth (%) 4Q01- Inkjet 1,418,348 1,126, Page 141, , Dot Matrix 100,032 90, Inkjet AIO 35, , Total 1,695,413 1,492, Source: Gartner Dataquest (March 2003)

3 3 Brazil Down, Mexico Up Countries most notably affected during the fourth quarter of 2002 were Argentina with a 48.3 percent decline, Brazil posting a 24.3 decline and Venezuela with 36.7 percent drop. Brazil continues to show weakness in the overall computing platforms market, driven by a 6.5 percent decline in PC shipments during this period. Brazil was also impacted in the fourth quarter of 2002 by the uncertainty regarding the presidential elections, a weaker currency, and a deterioration of the domestic market and external economic environments. Mexico continues to be one of the most stable markets in the region, growing 2 percent year over year, aided by an jump in shipments of AIOs, which increased 339 percent; during the same period, shipments of single-function inkjet printers fell 14.1 percent. It is also worth noting that laser shipments posted an increase of 30 percent during this period, boosted by shipments of lower-end products and government purchases. The Andean region continues to perform well, despite a decline in Colombia, mainly because of a strong fourth quarter in 2001 in Colombia (see Table 2). Table 2 Quarterly Printer Shipments by Country in Latin America, 4Q01-4Q01 Market Share (%) Growth (%) 4Q01- Argentina 89,878 46, Brazil 535, , Chile 90,613 89, Colombia 95,039 78, Mexico 507, , Peru 35,546 39, Venezuela 85,533 54, Rest of Latin America 255, , Total 1,695,413 1,492, Source: Gartner Dataquest (March 2003) Top Vendors in Latin America The top printer vendors in Latin America are as follows: HP had the weakest performance among top-tier printer vendors, posting a 31.2 percent decline year over year. HP was impacted by a drop in shipments of stand-alone inkjet printers, which posted a 28.2 percent decline year over year, while page printers declined 1.8 percent during the fourth quarter of AIO shipments grew 370 percent during this period. Total shipments reached 506,283 units, while revenue totaled $121 million during this period.

4 4 AIOs Displace Single-Function Printers in Latin America Epson posted a decline of 4 percent in printer shipments during the fourth quarter of 2002, totaling 386,508 units. Revenue reached $55 million during the quarter. Inkjet printers declined 28.2 percent, totaling 369,468 units, while dot matrix printers experienced an 8.1 percent decline and totaling 68,521 units. While Epson performed well in Chile, Colombia, Mexico and Peru, its overall performance was dragged down by declines in Argentina, Brazil and Venezuela. We should see AIO shipments for the first time from Epson starting in the first quarter of Lexmark posted the largest growth among top-tier vendors during the fourth quarter of 2002, aided by shipments of inkjet printer, including AIOs. Shipments reached 319,198 units during the quarter, a 39.7 percent increase year over year, while revenue declined 2.3 percent and totaled $71 million. Despite significant unit shipment growth, continued price erosion and a shift toward lower-end page printers resulted in small revenue growth. With the exception of Argentina and Venezuela, the remaining countries posted solid performances for Lexmark during the fourth quarter of 2002, after a soft third quarter of 2002 (see Table 3). Table 3 Top 10 Quarterly Printer Shipments by Vendor in Latin America, 4Q01-4Q01 Market Share (%) Growth (%) 4Q01- HP 735, , Epson 402, , Lexmark 228, , Canon 192, , Oki Data 22,335 17, Olivetti 30,500 15, Xerox 17,672 11, Samsung Electronics 2,000 9, Brother 5,311 6, Others 58,521 11, Total 1,695,413 1,492, Source: Gartner Dataquest (March 2003) Gartner Dataquest Perspective The traditional rebound in the fourth quarter never materialized in the Latin American hardware market as all computing platforms posted declines throughout the region. This sets the stage for another difficult year in 2003, with printer shipments expected to be flat compared with The region continues to suffer from internal geopolitical and economic problems, especially in Argentina and Venezuela. Other countries, such as Mexico, are now facing the challenge of maintaining currency stability to stem off the impact of inflation.

5 At the technology level, AIOs should continue to gain ground and grab market share from stand-alone printers as companies increasingly rethink their entire output strategy for replacing older products to consolidate and reduce costs. Color page printers, although shipped in relatively low volumes, continue to gain acceptance by end users, posting a 20 percent growth year over year. End-user awareness, better pricing and increased product offers are the correct recipe for continued growth in this segment. The government sector should continue to provide significant business for printer vendors, as demonstrated by the strong growth in Colombia and Mexico in page printers, which grew 72 percent and 30 percent, respectively. This growth was the result of government projects. Gartner Dataquest Recommendations Vendors should direct their attention to the Andean region because the countries of Chile, Colombia and Peru continue to perform well in the overall hardware arena. AIO printers should target the small office/home office (SOHO) market and small and midsize business (SMB) market and sell through retail and resellers (with approximately 65 percent sold by retail and 35 percent by resellers). Financing plans, such as interest-free monthly payments, are key to creating demand in difficult economic times in Latin America. 5 Key Issue How is product multifunctionality affecting the markets?

6 6 AIOs Displace Single-Function Printers in Latin America This document has been published to the following Marketplace codes: HARD-WW-DP-0459 For More Information... In North America and Latin America: In Europe, the Middle East and Africa: In Asia/Pacific: In Japan: Worldwide via gartner.com: Entire contents 2003 Gartner, Inc. and/or its Affiliates. All rights reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice