European printer revenues fall over summer
September 22, 2021
Printer sales revenues across Europe have slowed over the summer, due to pressures on price, supply and logistics, but a September rebound is on the cards, according to the latest data from CONTEXT, the IT market intelligence company.
As of week 34, CONTEXT’s Revenue Trend Index for refillable ink tank devices remained above 120, meaning that revenue is more than 20% higher than the average for 2019. This compares well with the performance of inkjet machines, for which the same measure stood below 80.
Ink tank devices are refilled with ink supplied in bottles, and the tanks have a higher capacity than traditional cartridges. Although the printer hardware has a higher upfront cost, the price per page is significantly lower, making them more cost-effective. They therefore became an increasingly popular choice among consumers during the pandemic. In recent weeks, sales have also benefitted from stock levels that remain relatively good, unlike those of cartridge printers.
The recent performance of ink tank printers has been particularly impressive in Germany, France and Italy, which together account for around 40% of European revenue from this type of device.
Consumer vs business
Business sales have rebounded after a tough year and revenue began to increase from around week 21, thanks to office re-openings and rebalanced budgets. However, it started to slide again in July and the holiday season exacerbated the trend.
The continuing shortage of components and raw materials means vendors will be seeking to make the best use of available components to optimise profits. They are thus likely to alter their mix of offerings toward products such as business printers that generate higher margins. A further incentive to shift production in this direction comes from increasing demand for business models as large private and public projects resume alongside new projects that will further stimulate sales in the segment.
Underperformance of the consumer market in Q2 2021 was also a consequence of the supply shortages. CONTEXT said that shipments did increase towards the end of the quarter, meeting pent-up demand, and remained high in July. This, along with suppliers raising prices, led to the revenue index growing from week 22. However, revenues fell significantly again in August as demand dropped and the global component shortage left manufacturers competing for limited materials, with ink cartridges and inkjet printers particularly affected.
Raw material shortages and logistics challenges are forcing prices up and reducing revenues across the industry. Should the situation improve in September, it is not unreasonable to anticipate a rebound in sales, particularly those of entry- and mid-level devices aimed at consumers.
Categories : Around the Industry
