Changing OEMs Strategies Make Difference

Changing OEMs Strategies Make Difference

“2017 has been a good year,” says Charles Brewer. The founder and president of Actionable Intelligence added, however, the print industry is witnessing significant shifts and transformations in both the OEM and the Aftermarket sectors like never before.

Changing OEMs Strategies Make DifferenceBrewer told attendees at the annual RemaxWorld Summit 2017 the total revenue of OEMs is down significantly from US$ 136.24 billion to US$105.06 billion in 2016 but there has been a turnaround, albeit small, in 2017. After falling for 10 quarters, shipments rose 0.6% in Q4 FY2016 and 1.2% in Q1 FY2017.

With his expertise in research and reporting in printing consumables Brewer founded Actionable Intelligence in 2009 becoming the digital industry’s destination for information and analysis. Brewer offered an analysis of the key changes OEMs have made to their respective businesses and shared the new strategies that will impact the market.

As the demand for hardcopy has dropped, hardware manufacturers have had to adapt their business to remain competitive. Brewer noted the OEMs are looking to updating their printer devices and expanding their product offering. “What is noteworthy,” Brewer pointed out, “is that more and more OEMs are accelerating their push into the A3 space, including HP, Lexmark and Xerox. At the same time, the OEMs are developing new channel strategies to sell a more diverse mix of products. With seismic shifts in the competitive landscape, OEMs have introduced scores of innovative new devices, challenging the third-party supplies industry to keep pace.” Brewer added that as hardware vendors further penetrate new markets, opportunities should expand for third-party vendors.

Brewer also reviewed the key changes that major manufacturers have recently made. He shared examples as to how companies have benefited from the transformation they have embraced and those which have not, and what it means for the industry wanting to survive and thrive.

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