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Lexmark recalibrates for changing printer market

Lexmark recalibrates for changing printer market

Lexmark International is re-launching its brand and products in Johannesburg, Durban and Cape Town and then in other African cities in Q2. The initiative forms part of the company's game-plan to cater for an active and evolving printer market.

Speaking to ITWeb Africa during the media launch of its next generation A4 colour lasers and smart MFPs, Nathan Nayagar, Managing Director for Lexmark - South Africa & English Speaking Africa, said the company's new set of printers and a repackaged brand is specifically targeted at opportunities for growth in changing market.

He says the printing business is not under threat and while there is decline in mono (black and white) printing, there is certainly growth in colour.

"The printing business is not under threat. If anything, your units depend on which segment may be declining, but if you look at what IDC said that in the colour segment - A4 category, MFP 500 dollar plus - that category is expected to grow by 45 percent between 2016 and 2019. That is from a colour point of view, so your mono pages – people printing in black and white – that may be declining, but as OEMS, when we look at revenue, we see the revenues growing because there is more of an uptake of colour. The decline is on the mono side but on the colour side there is growth."

Nagayar says Lexmark has already started selling the improved products and communication with channels is already underway in an effort to better the US$3.5-billion in global revenue the company generated last year.

Africa focus

Nagayar says the company has shipped in 320 000 laser units into the South African market, with the intention to boost sales and reinforce its current 25% market share.

Siva Naicker, Sales Director – Channel, echoes Nagayar's sentiments regarding the value of the Africa market.

"Africa for us is worth about five or six million dollars a year including the toner business but from a growth perspective I expect that figure to rise by thirty to forty percent. Year-on-year we are becoming a better business and Africa is certainly a big one. When I look at Nigeria we have huge opportunities right now, especially with the new colour devices. Nigeria is a huge market, Angola, Kenya also have business for us and SADC is also starting to go really well ... and in Botswana and Namibia we are getting a lot of traction as we begin to get into a lot of the banks and some of the ministries like in Mauritius where we've just won the ministry of education. We are starting to see a build up and remember that we are not really heavily resourced, so I only have two chaps including myself, and we look after South Africa and the rest of English speaking Africa."

Naicker says the new products being launched will reinforce their ability to serve the market because they can introduce new dealers and participate in public sector business.

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