Chinese Laser Printer Market to Surpass $5 Billion in 2010, Says Lyra Research

Newton, MA (PRWEB) November 9, 2006 -- According to Lyra Research, the digital imaging authority (www.lyra.com), revenue from the Chinese laser printer market, including hardware, toner cartridges, and paper, is expected to exceed $5 billion in 2010. As the largest developing country, China represents an attractive revenue opportunity for major printer vendors. Lyra's China Market Advisory Service forecasts that strong growth in China's printer industry will continue through 2010, particularly in the laser printer market, because China's business users prefer laser devices to ink jet devices for mainstream business printing (see figure: http://ww1.prweb.com/prfiles/2006/11/08/476119/ChinaLaserPrinterMFPTotal.jpg).

Commenting on the types of laser printers used in China, Jiqiang Rong, Lyra's director of primary research, says, "Lyra's research into the Chinese printer market shows that the typical laser printer in China is a low-cost device that is used at a higher rate than those in industrialized regions. Chinese business buyers' efforts to save money by purchasing low-end machines are, to some extent, futile because higher page volumes and the use of third-party supplies--sometimes of dubious quality--wear out the machines and force users to purchase replacements much more often than is the case in other countries."

About Lyra's China Market Advisory Service (CMAS)
Lyra's China Market Advisory Service (CMAS) service (http://www.lyra.com/lh3m.nsf/AdvisoryServices/CMAS) provides critical information about the domestic Chinese printing market. The service includes primary research reports on printer hardware, printer supplies, and digital photography based on surveys of consumers and business users in China. The CMAS also includes forecast reports on ink jet and laser printer hardware and supplies, commentaries on major events and developments that affect the Chinese imaging market, price updates, and analyst inquiry. Call Tom Sandock at 617-454-2621 for information on how this service can benefit your company.

Recent Webcast on Lenovo and the Chinese Printer Market
Lyra recently held a live Webcast, Made (and Invented) in China: Lenovo's Plan for a Chinese Printer Manufacturing Giant. Free Webcast and Podcast archives are now available for this event at www.lyra.com. Because of the Webcast's record attendance, there were many questions Lyra's analysts were unable to answer during the event. Answers to some of those questions are included below.

Lenovo Webcast: Questions and Answers

Given extremely low profit margins and cost-cutting efforts, what is the compelling reason for Lenovo to invest in the capital- and IP-intensive printer business?

With China now facing serious competition from countries such as Vietnam and India, the Chinese government is extremely anxious to move Chinese industry beyond simple assembly. If it fails to achieve this transition, the ramifications are huge -- millions of angry, unemployed workers could lead to political turmoil and, conceivably, the fall of the government. In addition, the printer business is one of the most profitable segments of the IT industry, thanks to its high-margin consumables, making the business particularly attractive to Lenovo. The same logic drew Dell into the business, but Dell has had problems in the printer business because it does not own its own technology. Hence, Lenovo is looking at another approach.

What would the Chinese government be willing to do with something like a Lexmark purchase? Would this be done by the consortium, by Lenovo, or by the government?

The Chinese government supported Lenovo's purchase of IBM's PC assets, so it presumably would have no philosophical problem with a Lexmark purchase, especially given that Lexmark is profitable and IBM's PC division was not. If a purchase is made, it is not clear who would actually write the check, but the government is almost certain to contribute funds, either through Lenovo (the Chinese government is the biggest owner of Lenovo) or through a consortium, if one is formed.

How serious was Lenovo's statement about forming a consortium? Was it floating this idea, or is the company committed to it? Has it provided any time frame?

Lenovo wants to have an internationally competitive printer business within two to five years. We believe the company is very serious. We checked with Hong Liu, assistant vice president and general manager of Lenovo's peripheral business department, who confirmed this for us.

Lyra's CMAS clients will receive a full transcript of the questions asked during the Webcast with Lyra analysts' answers. If you are interested in learning more about Lyra's CMAS service, please contact Tom Sandock at 617-454-2621.

Lyra Research: The Digital Imaging Authority
Lyra Research collaborates with imaging industry decision-makers worldwide, enabling clients to strengthen their market position and achieve profitable growth. Lyra's expert analysts and editors help clients devise and implement creative solutions to business challenges, arming them with competitive intelligence, strategic and tactical advice, news and analysis, and market forecasts.

Since 1991, Lyra's custom research and consulting, advisory services, award-winning journals, and innovative events have set the standard for analysis of imaging hardware, consumables, and digital photography markets.

Visit www.lyra.com to learn more about how Lyra can be your strategic business partner.

CONTACT:
Andre Rebelo
Marketing Manager
Lyra Research, Inc.
617-454-2658
first initial last name at lyra dot com

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