This Week in Imaging: Xerox Expands into Aftermarket Supplies
Among the interesting news this week was Xerox’s expansion of its remanufactured and new-built toner cartridges for non-Xerox printers and MFPs.
By our count, the new Everyday Line targets HP Inc. printers and MFPs the most, with the number of cartridges available for HP devices coming in at 146 HP models. This is sure to please both HP and partner Canon.
The big advantage that Xerox has going for it is that it’s got a well-known and iconic brand name. When it comes to reliability and trust, it’s likely customers will favor the Xerox name over others – particularly little-known Chinese brands. Plus, Xerox has covered all its bases when it comes to both safety regulations and the environment.
Meanwhile, in a July 30th filing with the U.S. Securities & Exchange Commission, Xerox management noted that one of its hardest-hit segments in its last quarter was unbundled supplies. The firm noted that it expects supplies’ sales to “continue to decline significantly as businesses delay supplies purchases” during the COVID-19 business lock-down period. However, the firm expects these transactional sales to recover in the second half of 2020 as businesses re-open.
On the positive side, Xerox also noted that in its latest quarter, the impact of both lower supplies and hardware sales was somewhat mitigated by its bundled services, which are more contractual in nature – that is, with contracts, it continues to receive some revenue even though office printing has drastically decreased.
Also on the positive side, Xerox saw some signs of recovery, and noted “a moderation of our revenue decline in June.”
This Week in Imaging