Lexmark quit inkjet printer business
Ryan Martin / 6 years ago
We recently heard about Sony exiting the PC Optical Drive market but shutting down Optiarc. Now we’ve learned Lexmark will be doing something similar with their Inkjet printer business.
As part of the $160 million restructuring program Lexmark will lay off 1, 700 employees and shut down the Lexmark inkjet business. The move will save Lexmark $85 million but the company says it will continue to offer support, supplies and warranty services to existing customers until all warranty periods expire.
Lexmark will now focus on enterprise printer products such as multifunction printers, managed print services and content management. These are considered to be higher-margin lines whereas inkjet printers represent a lower margin. Sales of inkjet supplies can bring in extra revenue but it’s not enough to be sustainable especially with the high level of competition that there is.
In also marks the decline of home printing with the digitalising of photography and photo or image sharing.
This news will probably mean any existing Lexmark printers will have prices slashed in order to shift stock quickly, so if you’re out for a printer bargain now is probably the time to search. Don’t neglect the ink though, its possible ink prices could soar as production slows so it could be a good idea to stock up on that too.
Lexmark shares have risen with the news that it will dump the Inkjet business.