A market study of colour printers

The printer manufacturing market appears to be a booming one. Manufacturers are little doubt eyeing growth and returning up with newer merchandise to capture the burgeoning market. The manufacturers are inquisitive about the color -printer sector for purely reasons of expansion. There’s stiff competition between the manufacturers as all are concentrating to stay the costs low to capture the market. It should be said here that while within the monochrome department Hewlett-Packard co. are the market leaders, the reigning company in the colour phase still remains undecided.

However the future of the color printer market is imagined to be a bright one according to those investing in these companies. The investors are abundant optimistic, as these printers, using four times the toner cyan, magenta, yellow, and black of a monochrome printer, will turn out pictures of a much higher quality. The market, currently a billion dollar trade, can increase manifold.

Adding on to its product vary, printing giant Lexmark introduced its c52x series, which included the c524n last June. Earlier there was an enormous gap in its colour line up-there was simply the low- end c510 with a capacity of printing concerning 8 color and thirty monochrome footage in an exceedingly single minute which wasn’t all that fast. There also existed, facet-by-side, the high-end c762 which, though having the next speed, was a lot of additional expensive, thereby difficult to afford for the smaller offices and home users. As there was no other product catering to the strain of the users the competitors of Lexmark had a footing over it.

The introduction of Lexmark’s c524n however modified things.
They introduced this product with a very low value range, thereby creating it affordable. Offering a dpi resolution of 1200*1200, this network ready colour laser printer has an impressive colour output and will print up to twenty pages per minute. The very first page might be printed in as little as 13seconds. The model features a monthly most duty cycle of 65000 pages, that is sort of impressive. The new c524 conjointly reduces the time taken by print jobs significantly as it has a 437.5MHz processor and 128Mbytes of memory. The memory can be expanded up to 576, which decreases the waiting time taken for print jobs. Moreover, color care technology and Lexmark coverage estimator help in managing the price concerned in using color toner. The model, weighing 57 pounds, is 17.three inches wide, 19 inches high and 20.2 deep.  With the model additionally comes a CD consisting of the user guide and also the printer software, an influence cable, a paper exit extension tray, founded sheet and toner cartridges for cyan, yellow, magenta and black. The merchandise contains a one-year warranty period for on web site repair.

It goes while not saying that that outsourcing of IT and shopper electronic merchandise lower manufacturing prices of the merchandise, which helps lower the costs of the produced good. The query is how low should the producers keep their profit margins so as to remain in the race in today’s color printing market?

The present analysis lab examined the c524n at a product volume of 1,20,000 units underneath the idea {that the} model was produced in china. An analysis was created of the procurement prices of commodity parts, producing costs of fabricated components and location labour rates. The assembly cost was estimated to be around £265 / unit. The price distribution showed the cost of the printer mechanism and its assembly to be about £51. The electronics and assembly account for £60. Different costs included laser power supply, consumables assembly, fuser assembly, paper assembly, control panel assembly electronics assembly, final arrangements, etc.

At the time of launching the merchandise, the merchandise was presupposed to be priced at £390. However, Lexmark priced the merchandise at virtually 0.5 of the originally meant worth at some places. To maximize its revenue, the corporate in a very clever move, outfitted the toner with totally different toner cartridges. The toner content was increased or decreased in keeping with the budget of the customer. The additional expensive models containing a lot of toner catered to the stress of the enterprise section while the lower priced models with low yield cartridges were ideal for little offices and also home users.

The product, being suitably priced, was a nice success, perfectly fitted to meet the needs of the consumers and the manufacturers and compete with its competitors in the lucrative colour printer market. Lexmark claimed the print quality was Photorealistic. On account of its chemically processed, spherical toner delivering a 1200*1200 dpi resolution and additionally as a result of the new print head four lasers in one unit with a mirror. The machine enabled Lexmark to require on the enterprise market along with their competitors, particularly Hewlett-Packard.

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