Print industry crisis
Smartphones and tablets have been an important part of our everyday life. They offer practical alternatives to many other electronic devices, which are normally bought and used individually, and replace them in many cases. In 2012, this became particularly obvious in the German print industry. Germany is one of the major European print markets. However, turnover figures took a hit in the second quarter of last year. Tablets and other devices of that kind, in connection with the so called “cloud”, make the printer redundant and thus determine the sales figures. This trend has not only been observed in Germany, but all over the world.
HP, one of the brand leaders, has already been facing turnover and sales problems with its printers for quite a while. The company is reporting serious deprivation in the section of printers and printing ink. However, they are not on their own. Other market participants have also experienced a change. Market prices mirror this development. In July 2012, HP’s rate reached the lowest level in seven years. The losses in sales cannot be justified by the ailing economic situation in Europe and the euro crisis, anymore.
In the third quarter of 2012, HP‘s international market share concerning the sales of printers, photocopiers and multi-function units of 37.30 per cent made the company brand leader of the industry. It was followed by Canon (20.9%), Epson (15.20%), Brother (7.00%), Samsung (5%) and others (14.60%). As the crisis concerns the whole industry, the market participants have to come up with strategies on how to keep up on the market. The major part of turnovers is made up of the business with ink cartridges. Now that the business with the devices themselves is ailing, the companies use the equipment to make money. The business model of consequential charges, the clients are exposed to, is used particularly for private customers and small and medium companies.