September 24, 2016
Samsung dumps printer/MFP division to HP:
– Even though Samsung originally asked for $1.8 billion, it accepted offer of $1.05 billion from HP Inc. to sell off its MFP/printer division o Samsung agreed to make a $100-$300 million equity investment in HP Inc.
o Estimated integration costs of $150-$200 million over next 3 years for HP
o Samsung also sold all of its shares of Sharp (35.8 million shares) § The recent recall of Samsung smartphones could cost the company $5 billion in lost revenue
§ Loss of $22 billion in market value
o HP acquires 6,500 MFP/printer related patents (laser and inkjet) § Also acquires 6,000 employees, including 1,300 researchers and engineers
§ Includes facilities in South Korea, India, China, Japan, Russia, Canada, Brazil and the U.S.
§ Products are made in factories in China
§ Will also own PrinterOn, which Samsung recently acquired
– Dion Weisler, CEO of HP, stating that this would “accelerate our strategy to disrupt the $55 billion copier segment” o “copiers are outdated, complicated machines with dozens of replaceable parts requiring inefficient service and maintenance agreements”
o “trying to do for the copier space what Tesla has done for cars”
o HP’s past tries at cracking the A3 MFP market include: § 1996 = Introduced “Mopier” product line, based on laser engines from Fujitsu and Canon
§ 2005 = launching the LaserJet 9000 series of laser MFPs, based on product sourced from Konica
§ 2006 = launching the Edgeline CM8000 series MFPs, based on color inkjet engine
§ 2009 = announced it will resell Canon imageRUNNER A3 MFPs as part of MPS contracts in its direct organization
§ 2013 = launched S900 series of MFPs, which were laser MFPs from Sharp
– Obviously, this has led to many industry analysts to wonder how much this will hurt Canon, which has been making LaserJet products for HP for 30 years o In response, HP claims that even though Samsung makes A4 laser engines, it will continue to source A4 laser engines from Canon
o Instead, HP claims that instead that main focus for Samsung acquisition is to make A3 laser printers and MFPs using Samsung factories it is acquiring
o This would mean that Canon no longer would make A3 engines for HP, and HP would no longer resell Canon A3 products, as well as those it was reselling from Sharp § Was reselling 6 different A3 laser models sourced from Sharp
§ Was reselling 9 different A3 laser models sourced from Canon
o Mr. Weisler also admitted that he met with Canon CEO, Fujio Mitarai, to let him know of the acquisition
– HP did not provide any details about following: o What it will do with existing Samsung made A4 products
o What it will do with products that Samsung currently makes for Ricoh, Xerox, Dell, Muratec and others
– The transaction is expected to close within next 12 months, but HP will start using Samsung for A3 as soon as possible.
– Samsung stated that it intends to source product from HP and market in Korea
– HP claims its goal is to move to 87% of sales from indirect(VARs/dealers) and 13% from HP Direct, versus current 80% indirect and 20% direct o Goal is that 40% of its resellers will be from BTA/office equipment dealer space
o “Initially, dealers will be allowed to carry HP as a second line, but over time they will have to switch because it won’t be affordable to them”
o Insight Enterprises, a large computer products online reseller, announced its intention of selling the new HP A3 product line
– HP plans on shipping soon 13 different A3 laser products sourced from Samsung o All offer white plastic exteriors
o To be launched in spring of 2017
o Supposedly will be sold by HP Direct and dealers only, and not to sold online via open distribution outlets
o All models are based on existing Samsung A3 laser MFPs with 10.1” color LCD touchscreens
o Base MSRP may be as much as 50% less than laser MFPs of same speed (possible range of $1000 to $5000 street price)
o Advertised as offering total click costs up to 20% lower than competitor’s MFPs
o Color LaserJet Managed Flow E77822 MFP at 22ppm
o Color LaserJet Managed Flow E77825 MFP at 25ppm
o Color LaserJet Managed Flow E77830 MFP at 30ppm § Up to 3,140 sheet paper capacity
o Color LaserJet Managed Flow E87640 MFP at 40ppm
o Color LaserJet Managed Flow E87650 MFP at 50ppm
o Color LaserJet Managed Flow E87660 MFP at 60ppm § Up to 6,140 sheet paper capacity
o B/W LaserJet Managed Flow E72525 MFP at 25ppm
o B/W LaserJet Managed Flow E72530 MFP at 30ppm
o B/W LaserJet Managed Flow E72540 MFP at 40ppm
o B/W LaserJet Managed Flow E82550 MFP at 50ppm
o B/W LaserJet Managed Flow E82560 MFP at 60ppm
– Weisler stated that acquisition “extends partners’ (dealers) opportunity to grow their managed print services businesses” o “MPS opportunities are really about driving document handling, print optimization and workflow optimization. We’ve had a gap – and we have acknowledged that – because our MPF has been pure A4”
o “Now we have added A3 lineup to it, and honestly, there are still a lot of A4 pages being printing on A3 printers. This just gives you that additional portfolio, meaning it is going to support the overall opportunities for partners and this is a huge market opportunity”
o “In terms of that market, we have sort of been restricted in entering because we did not have a product that would match there.”
o “The acquisition is going to be an important part of transactional print, but in particular MPS”
o “What you need to build up is the solution experience and solution capabilities, where it is a workplace assessment, document handling or document management. And for me, that is really where print will be moving”
– HP announced it will be looking to add new dealers that have A3 skills, as well as those with capabilities in 3D, system integration, solutions and services.
– HP claims that the combined value of A3/A4 printer/MFP market is $110 billion worldwide o Claims that HP has 3% of the $55 billion A3 market
o Claims to have 33% of the $55 billion A4 market
– HP also believes that print security is “neglected” and an “unspoken” topic. Claims all new models are “world’s most secure” as they offer: o SureStart to protect BIOS (basic input/output system)
o Whitelisting Technology to protect firmware
o Run-Time Intrusion Detection to protect memory
o JetAdvantage Security Manager to protect network
– HP also is launching three new PageWide color inkjet MFPs (which are made by HP, and not Canon, Sharp or Samsung) o To be launched in spring of 2017
o All offer white plastic exterior
o Advertised as offering total click costs up to 40% less than competitors laser MFPs
o PageWide Managed P77740 MFP at 40ppm color
o PageWide Managed P77750 MFP at 50ppm color
o PageWide Managed P77760 MFP at 60ppm color
o All models offer a low quality output mode called “Draft” that offers higher speed
o Up to 4,650 sheet paper capacity
o Uses a single inkjet printhead that is 11” across with 42,240 inkjet nozzles
o Will offer a second set of models that are 5ppm faster, that will be for dealers only to differentiate from models offered online and open distribution, that will launch in fall of 2017
o Will have two different meters for ability to charge two different color click rates
o Will offer large touch screen color LCD display, and both basic and professional finishing options
o Consumables include 4 different ink cartridges, waste ink collection unit, service sled and print bar
o Advertised as saving dealers up to 30% of their service costs § Projects that will require an average of 4 service visits per year
– All new models will offer “Smart Device Services” to provide dealers with remote diagnostics (competes with vCare)
UPS to expand 3D print offering
– In report from Reuters News Service
– Looking to offer a service in which UPS will print out the plastic parts, anything from nozzles to brackets to prototype soap dispensers or multi-faceted moving parts – around the world and deliver them
– Currently offers 3D printing at 60 of its UPS Stores in the U.S.
Ricoh wins PPS contract
– Award from Graphics and Marketing, a commercial printer in Sterling, VA
– Installed Pro C7110X production color system o Already had installed a C900, C901, C901+, Pro 8120 B/W
o Also owns TEC Lighting UV coater, Xante’ envelope printer and Morgana creaser/folder
o Solution includes PTi Marcom Central
– Produces work for credit unions, banks, HOAs, pest control firms, real estate agencies and non-profits
PaperCut wins award
– Named “Outstanding SMB Print Management Solution” by Buyers Labs Inc.
– PaperCut is maker of a “follow you”-like solution (competing with Equitrac, PrintPath, Output Manager, LRS, etc.)
OpenText buys Documentum ECM business
– OpenText Corp. of Canada announced it acquired EMC’s Enterprise Content Division from Dell (which just acquired EMC)
– Purchase price reported was $1.62 billion
– OpenText already markets its own ECM, and recently acquired some software divisions from Hewlett Packard Enterprise
Foxconn ends Sharp’s “rotation system”
– Foxconn, aka Hon Hai Precision of Taiwan, announced another change it is making since it acquired Sharp, according to article that appeared in Nikkei Asian Review
– Will setup an intellectual property management company to manage Sharp’s patent holdings and R&D employees o Plans to increase revenue by licensing patents to other firms
– New president, Tai Jeng-wu, announced following changes at Sharp’s Japan management offices: o “claps his hands in worship in front of a Shinto shrine on its premises before the meeting that starts at 8am every morning”
o Is ending the existing “rotation system” what was promoted by former Sharp president, Katsuhiko Machida § This system used to have young employees assigned to three separate sections, to produce workers that have knowledge outside their field of specialty, rather than being expert in specific area
§ Foxconn requires workers to specialize in specific fields upon joining the company and must continue to improve their specialty
Sharp launches new robot
– Launches the new INTELLOS A-UGV, an automated unmanned ground vehicle
– Advertised as a multi-terrain outdoor robot for security, surveillance and maintenance safety inspections
– Service will be provided by Bell & Howell in the U.S.
– Captures video, audio and environmental data
– Provides visible deterrent
– Uses an array of cameras, including optional thermal imaging
– Optional gas and chemical sensors
– Equipped with siren, flashing lights and voice announcements
– Includes 2-way communication
– Powered by Lithium-ion batteries with 8 hour run time
– Has telescopic boom to see into and over objects
Epson cites success in production labels
– Claims it has now installed a total of 200 of the Epson SurePress L-4033 production color inkjet label systems worldwide
– Claims it is now a leader in the color label printer market
Kyocera partners Hyland reseller
– Kyocera (aka Kyoto Ceramic Company) announced it has entered into a “business alliance” with DataBank, which is headquartered in King of Prussia, PA
– DataBank is the country’s largest reseller of Hyland OnBase ECM solutions (so will it now sell Kyocera MFPs from its locations across U.S.?)
– Kyocera now offers a connector to Hyland OnBase on HyPAS equipped Kyocera MFPs
– Databank has locations in: o Chesterton, IN
o Chicago, IL
o Lincoln, NE
o Phoenix, AZ
o Minnetonka, MN
o Sioux Falls, SD
o Philadelphia, PA
o Boston, MA
o Dallas, TX
o Houston, TX
o Jacksonville, FL
o Orlando, FL
o Tallahassee, FL
o Monroe, LA
o Sacramento, CA
Kyocera signs license for MFP technology
– Licensed Arteris FlexNoC patented technology for use in designing future systems-on-chip semiconductors for use in future MFPs
– Arteris is headquartered in Campbell, CA
Canon wins PPS contract
– Award from School Craft Studios, located in Sparta, New Jersey
– Installed a Canon DreamLabo 5000 production color inkjet system
– Will be used to produce and market school portraits, photo albums and yearbooks
Canon to offer new options for large format
– Announced reseller agreement with Colex Finishing of Elmwood Park NJ
– Will offer Sharpcut Digital Finishing Systems providing flatbed XY cutters as offline options for its Oce’ branded wide format printers
Canon to launch new wide format tech
– Will be unveiled at SGIA show
– Called “UVgel” technology, and will be used on new roll-to-roll wide format color printers
– New ink is advertised as “instantly gels on contact with media, resulting in precise dot placement and area control for consistent high quality images at high speed”
– Uses piezo crystal inkjet printhead technology
– LED UV ink curing sub system
– Will be part of new 64” device to ship in spring of 2017
HP wins PPS contracts
– Award from Discount Labels, a commercial printer in New Albany, Indiana o Installed two new Indigo WS6800 production color label systems
– Award from Quality Tape & Label of Smyrna, GA o Installed Indigo 20000 production color system
– Award from MO), a commercial printer in Rhode Island o Installed an Indigo WS6800 production color label system
– Award from Thomson Reuters Core Publishing Service, a commercial printshop in Eagan, MN o Installed a PageWide Web Press T360 production color inkjet system
o Peak volume of 6.5 million pages per 24 hour day
Komori announces beta site for new PPS
– Sun Print Solutions, a commercial print shop in West Valley, Utah
– Will be beta site for new Komori Impremia NS50, a sheetfed production inkjet system made by Landa Systems of Israel
Xerox to partner with Koenig & Bauer
– Xerox will codevelop a new digital sheetfed press with KBA of Wurzburg, Germany
– The VariJET 106 will use Xerox’s Impika color inkjet technology
– Top speed of 4500 sheets per hour
– 1400dpi
– 29.5” x 41.7” max sheet size
– Aimed at folding carton market
Copier dealer wins NBA Team deal
– Ray Morgan Company announced it is the official office technology equipment supplier for the Sacramento Kings basketball team of California
– Ray Morgan is a Ricoh and Canon dealer with locations in northern California and Nevada
Fuji loss is larger
– Originally reported that its copier sales division in New Zealand reported a loss of $8.7 million, but now is reported at $43 million according to NBR
– Sudden departure of two executives
– Complete review of operations in New Zealand and Australia
– Will cut up to 5% of its 800 employees in New Zealand
– Net current liabilities of $46.5 million
– Amount due to Fuji headquarters of $99 million
– Increase in intercompany payables from $108 million in 2015 to $162 million in 2016
– Total revenue in 2016 of $227 million, down from $301 million last year
– Has fully drawn down a loan facility of $284 million
– Appears to have borrowed an additional $10 million from Citibank
Could copier/printer shipments be delayed?
– Hanjin Shipping of South Korea, one of the world’s largest shipping companies, declared bankruptcy, and has stranded more than 40 massive container ships at sea
– The ships are carrying $14 billion worth of goods
– They cannot dock at harbors, as they cannot pay workers in ports to unload goods
