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Russian HCP market declines in 2Q2014

October 9, 2014

russia2014The market contracted in volume and value due to “slowdown” in economic activity.

IDC reported on the decline of the Russian hardcopy peripherals (HCP) market in the second quarter of 2014, stating that the market contracted around 15 percent in volume and 13 percent in value “compared to the same period last year”, with more than 735,000 printers (single and multi-function) shipped in the period.

The analysts note that the key reasons for these declines are “the ongoing slowdown of economic activity in the country” as well as “massive capital outflow resulting from the unstable political situation” there. Laser device shipments fell by 20 percent year-on-year in volume terms, with HP still holding 40 percent of the market ahead of Samsung and Kyocera.

IDC added that the “negative market dynamics” are a reflection of the “diminished purchasing power of consumers and micro-businesses in a depressed economic environment”; despite medium and large businesses being “financially capable” of modernising their installed base, they are “focusing on efficiency and cost-saving production”, and MFPs are “preferred” to single function in monochrome and colour as a consequence.

Inkjet shipments fell by two percent in volume year-over-year, though they did increase by 16 percent in value terms, and the “recent region-wide trend” in inkjet has seen “most major vendors reducing focus on entry-level devices” as they “yield low profit margins despite high-volume shipment levels”, with an emphasis “shifting” to mid and high-end devices “capable of high-seed printing” and a low total cost of ownership (TCO).

Konstantin Makarenkov, Senior Analyst at IDC, commented: “While overall market dynamics continued to be negatively affected by macroeconomic factors, the key trends of the previous two quarters persisted.

“Namely, growth in the midrange colour laser MFP segment, due to the increasing affordability (and low TCO) of these machines, as well as strong growth in the midrange and high-end inkjet segments. Both of these developments confirm end-user interest in the benefits to be gained from original CISS systems.”

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