The third quarter of 2010, may be the highlight of the year, but let’s hope not.  The laser multifunction sector grew 11% on a Y/Y basis and 18% from last quarter.  All segments within the laser multifunction category made gains on both a Q/Q and Y/Y basis.  SOHO leads the way with increases of 31% Q/Q and 9% Y/Y; Business MF had increases of 2% Q/Q and 20% Y/Y. Finally, Fax-based MFP’s had increases of 6% Q/Q and 2% Y/Y.  In the total laser printer market, both single and multifunction, shipments increased by 13% from Q3 2009 and 16% from last quarter.

Last quarter, Managed Print Services (MPS) were back in the spotlight with Oki Data, Kyocera Mita, Ricoh and Lexmark all offering new options to the channel to bring them onboard.  In September, Canon announced updates to its Managed Document Services (MDS) program including elements targeting national service infrastructure for its authorized dealer channel, environmental sustainability and new solutions improving efficiency across a broad range of single office to multi-fleet, enterprise-level engagements.  Canon has been delivering its MDS program for more than 10 years, as have other vendors and each year the services are improved or change to meet the every evolving business environment.

Xerox and Brother are joining H-P and Ricoh in the mobile printing arena.  Xerox has introduced three tools that make it easier to print, regardless of location.  Xerox mobile print solution, enhanced mobile express and global print drivers, allows an easy and secure way to print from any e-mail-enabled device.  Brother is offering iPrint&Scan, a mobile printing solution available on iOS and Android platforms and is compatible only with Brother devices.  The free application enables remote scanning on iPads in JPEG and PDF formats for printing later.

Exhibit 1: Total Annual Shipments: 2007 - 2012

In 2009, total shipments for multifunction decreased by 14%.  After the less than stellar Q2 forecast being adjusted downwards, the higher than expected Q3 results have resulted in a revised increased forecast.  Originally, the forecast was a 6% increase, then a 5% increase and now it is set at 8% for 2010.  2011 and 2012 remain at a 5% increase.

The total printer market, both single and multifunction combined, increased 16% (Y/Y) and 13% (Q/Q) in Q3.  Single function printers’ account for 60% of the total market and that segment grew 14%, while multifunction grew 11%.  As per the chart below, all segments performed well when compared to the previous quarter and year.

Exhibit 2: Overall Segment Growth (Units)

Shipments

After three quarters of declines, SOHO had a fantastic third quarter.  The multifunction segment as a whole had a great quarter, SOHO shipped 31% more units, fax-based shipped 6% more units and Business MF shipped 2% more units than Q2, which meant an 18% increase for the total segment.  Unit shipments for the total market were up 11% (Y/Y), with BMF increasing 20%, SOHO increasing 9% and fax-based MFP’s increasing 2%.

Looking ahead, Q4 tends to be the strongest quarter for shipments, accounting for 26% to 28%.  Last year, with the economic chaos, unit shipments suffered, but with recovery occurring in the market, this will not repeat itself. 

The SOHO category represented 59%; Business MF 32% and fax-based MFP 9% of the total market in Q3 10.

Exhibit 3: Market Overview by Quarter Q4 2008 – Q3 2010