Internet use hits demand for printers

New data from Synovate reveals that increased use of Internet related technologies could spell doom for players in the printing business.

As more people and businesses use Internet services to communicate with each other, the company reckons that there will be less demand for physical print-outs of communication.

“The signs are in place, we are already seeing less of the sample relying on the post. As cloud computing and social networking take on more prominence, we see that trend having ramifications on the printer business. Simply, we will not need to print any more,” said Joe Otin, Media Research and Monitoring Director for pan Africa at Synovate.

If Synovate’s prediction comes true, it could translate to decreased revenues for the manufacturers of printers, copiers and other related devices who are already reeling from the effects of a slow down in spending in this market.

Market analysts IDC have noted that there was a sharp dip in demand for printers and copiers, as companies and individuals refrained from buying due to the economic climate in the dying months of 2009.

IDC said that Kenya’s hard copy peripherals (HCP) market, which includes printers, Multi function Printers, and single-function copiers, continued to decline in the third quarter of 2009 as demand from the government sector weakened on the back of the struggling economic environment and budget constraints.

According to the latest research from the market intelligence firm, Kenya’s HCP market slumped 27.5 per cent in volume year on year in Q3 2009 to total 24,496 units worth $10.35 million.

A decrease in government spending on technologies forced players in the printers market — which includes market leader HP, Epson among other brands— to shift their focus to their SME and financial industry mainstays.

“Despite the overall slowdown, small and medium businesses and corporate institutions have remained pivotal in sustaining demand for HCP devices,’’ said Onesmus Mbogo, Research Analyst, IDC East Africa.

HP continued to dominate the market with a unit share of more than 72 per cent, with second-placed Epson garnering 13 per cent share.

The mono laser single-function printer segment, which traditionally records the market’s strongest year-on-year growth figures, suffered the heaviest decline in Q3 2009 as a result of the widespread shortage of HP laser products following the vendor’s global re-organisation of its manufacturing processes in light of global financial crisis.

Shipments of mono laser multifunctional peripherals (MFPs) also suffered a considerable year-on-year downturn.

The colour laser HCP market suffered its first decline of the year in Q3 2009, following subdued demand from corporate institutions and the government, the primary consumers of these products.

Vendors remain optimistic, however, that the situation will improve in the final quarter of 2009 as demand from the government sector has already begun to show signs of improvement.

The overall inkjet market continued to shrink in size, largely as a result of changing technology preferences, with more end users migrating to laser devices that promise higher work and cost efficiency.

IDC expects this trend to accelerate over the coming quarters as laser products become more affordable.

The inkjet MFP segment, however, managed to record positive year-on-year volume growth in Q3 2009, driven by growing demand from small office/home office users.