OEM to Shake up China Market

International Data Corporation (IDC) predicts HP will shake up its market in China’s A3 copier sector with the acquisition of Samsung.

According to Donna Wang, the Research Manager at IDC China, HP’s buying will bag 6,500 printing patents from Samsung. The OEM also plans to release 16 new A3 copier base MFPs. IDC expects HP will bring major changes to China’s market currently dominated by Japanese brands—Fuji Xerox, Canon and Ricoh.

Wang stated, “The acquisition will allow HP to build on its own strength in printing solutions and leverage Samsung’s leading position in the smart office sector to expand its printing management service business. To a certain extent, HP’s focus on these two areas will trigger major changes in China’s printing market.”

IDC’s report shows A3 copier base MFPs account for 6% of China’s entire shipment in  hardcopy peripheral market, but the sales revenue occupied 34% of the market. IDC says the A3 MFPs have substantially higher average prices and bigger printing volumes than desktop printers. That is to say it has larger potential profits from follow-up consumables and services, IDC added.

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