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Canon Ups The Ante On A3 MFDs

Biswajit.HD

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Canon is planning to drive A3 MFDs aggressively in India in order to consolidate its market leadership in the segment.

The A3 MFD market is growing at a fast pace and many large enterprises are replacing A4 printers with A3 MFDs because of the latter’s lower overall TCO and heavy-duty printing ability. In 2010, the A3 MFD market was valued at Rs1,026 crore, with sales of 84,000 units, and it is growing at 30 percent annually. At 24 percent, Canon’s share was valued at Rs225.6 crore.

“Our objective this year is to grow faster than the market and consolidate our share,” said Bhaskar Joshi, Manager, Marketing, Office Imaging Solutions Division, Canon India.

According to Canon, the printing cost of A3 MFDs is almost 65-70 percent lower than A4 printers. “A4 MFDs are cartridge-based, with a high cost of Rs1.2 per page, while A3 MFDs are based on the drum-and-toner technology, which offers a lower cost at Rs0.35 per page. Canon’s Office Imaging Division (A3 MFDs) has observed a unit-wise growth of 35 percent in Q12011 as against the industry growth of 18-19 percent,” said Joshi.

As per market trends, unlike the earlier preference for entry-level A3 MFDs, with 16-18 PPM (pages per minute) output, SMB and SOHO customers are now opting for value MFDs with higher than 20 PPM output. The share of value MFDs is increasing, and the shift to color MFDs is accelerating.

“Earlier, for Canon, value MFDs (output of 20 PPM or more) contributed only 8 percent against the 92 percent from volume machines (16-18 PPM). Now they contribute almost 50 percent,” said Joshi.

Color MFDs are also catching on in B- and C-class cities. Canon is doing roadshows for its partners in these cities.

source : crn
 
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