A market study of colour printers

The printer manufacturing market seems to be a20.2 deep.  With the model also comes a CD
booming one. Manufacturers are no doubt eyeingconsisting of the user guide and the printer
expansion and coming up with newer products tosoftware, a power cable, a paper exit extension
capture the burgeoning market. Thetray, set up sheet and toner cartridges for cyan,
manufacturers are interested in the colour -printeryellow, magenta and black. The product has a
sector for purely reasons of expansion. There isone-year warranty period for on site repair.
stiff competition between the makers as all areIt goes without saying that that outsourcing of IT
concentrating to keep the prices low to captureand consumer electronic products lower
the market. It must be said here that while in themanufacturing costs of the product, which helps
monochrome department Hewlett-Packard co. arelower the prices of the produced good. The
the market leaders, the reigning company in thequestion is how low must the producers keep
colour segment still remains undecided.their profit margins in order to stay in the race in
However the future of the colour printer markettoday's colour printing market?
is purported to be a bright one according to thoseThe current analysis lab examined the c524n at a
investing in these companies. The investors areproduct volume of 1,20,000 units under the
much optimistic, as these printers, using fourassumption that the model was produced in china.
times the toner cyan, magenta, yellow, and blackAn analysis was made of the procurement costs
of a monochrome printer, will produce pictures ofof commodity components, manufacturing costs
a much higher quality. The market, currently aof fabricated components and location labour
billion dollar industry, will increase manifold.rates. The production cost was estimated to be
Adding on to its product range, printing giantaround £265 / unit. The cost distribution showed
Lexmark introduced its c52x series, which includedthe cost of the printer mechanism and its
the c524n last June. Earlier there was a huge gapassembly to be about £51. The electronics and
in its colour line up-there was simply the low- endassembly account for £60. Other costs included
c510 with a capacity of printing about 8 colourlaser power supply, consumables assembly, fuser
and 30 monochrome pictures in a single minuteassembly, paper assembly, control panel assembly
which wasn't all that fast. There also existed,electronics assembly, final arrangements, etc.
side-by-side, the high-end c762 which, thoughAt the time of launching the product, the product
having a higher speed, was much morewas supposed to be priced at £390. However,
expensive, thereby difficult to afford for theLexmark priced the product at almost half of the
smaller offices and home users. As there was nooriginally intended price at some places. To
other product catering to the demands of themaximize its revenue, the company in a clever
users the competitors of Lexmark had an edgemove, outfitted the toner with different toner
over it.cartridges. The toner content was increased or
The introduction of Lexmark's c524n howeverdecreased according to the budget of the
changed things.customer. The more expensive models containing
They introduced this product with a very lowmore toner catered to the demands of the
price range, thereby making it affordable. Offeringenterprise segment while the lower priced models
a dpi resolution of 1200*1200, this network readywith low yield cartridges were ideal for small
colour laser printer has an outstanding colouroffices and also home users.
output and can print up to twenty pages perThe product, being suitably priced, was a great
minute. The very first page may be printed in assuccess, perfectly fitted to meet the needs of
little as 13seconds. The model has a monthlythe buyers and the manufacturers and compete
maximum duty cycle of 65000 pages, which iswith its competitors in the lucrative colour printer
quite impressive. The new c524 also reduces themarket. Lexmark claimed the print quality was
time taken by print jobs considerably as it has aPhotorealistic. On account of its chemically
437.5MHz processor and 128Mbytes of memory.processed, spherical toner delivering a 1200*1200
The memory can be expanded up to 576, whichdpi resolution and also because the new print head
decreases the waiting time taken for print jobs.four lasers in one unit with a mirror. The machine
Moreover, colour care technology and Lexmarkenabled Lexmark to take on the enterprise
coverage estimator help in managing the costmarket as well as their competitors, especially
involved in using colour toner. The model, weighingHewlett-Packard.
57 pounds, is 17.3 inches wide, 19 inches high and