Worldwide Hardcopy Peripherals Market Returned to Year-Over-Year Growth in Fourth Quarter, Ending Six Quarters of Decline, According to IDC

FRAMINGHAM, MA. – March 15, 2010 – The worldwide hardcopy peripherals market grew 3.6% year over year with 34 million units shipped in the fourth quarter of 2009 (4Q09), according to the International Data Corporation (IDC) Worldwide Quarterly Hardcopy Peripherals Tracker. Driven by the continued popularity of multifunction printers (MFPs), this represents the first year-over-year gain in the market since the second quarter of 2008. Although shipment values declined 4.6% year over year to $14.3 billion in 4Q09, this was the slowest rate of decline since 3Q08.

"We believe the fourth quarter will be the start of the market recovery. While this is a positive sign, the market is expected to recover slowly throughout 2010," said Phuong Hang, program manager, Worldwide Hardcopy Peripheral Trackers.

In previous quarters, the key bright spot in the overall hardcopy peripherals market worldwide has been the color laser MFP market. This quarter, monochrome laser MFPs took that honor with 9.3% year-over-year growth, relegating the color laser MFP market to second-tier status among major market segments with 8.0% growth. Samsung led the way in the monochrome laser MFP market in terms of major vendor unit growth with 60.6% year-over-year growth. In terms of future growth rates, color laser MFP is expected to continue to be the leader, while monochrome laser MFPs will capture the majority of MFP laser shipments.

Technology Highlights

* The inkjet market continues to be the dominant technology segment with 23.8 million units shipped in 4Q09, a trend that is expected to continue into the future. The color inkjet MFP segment showed the third highest growth rate among all technology segments behind color laser MFPs with 6% year-over-year growth. The inkjet market segment also has the highest penetration of MFPs compared to all technology segments, with rates above 75%.

* The monochrome laser market remains the largest technology segment in terms of value at $5.8 billion and has the largest potential regarding MFP opportunity. This segment has the lowest rate of MFP penetration of all major non-impact segments.

* The color laser market is close to surpassing the monochrome laser market in value of shipments and continues to outperform the overall hardcopy peripherals market.

Regional Highlights

United States

* – The U.S. market has remained in relatively good shape compared to other regions and continued to be the clear leader in terms of overall shipment value in 4Q09 ($4.4 billion). In terms of units shipped (7.8 million), the U.S. ranks number two, slightly behind Western Europe. The U.S. dropped to fourth place in terms of year-over-year shipment growth, following Asia/Pacific (excluding Japan), Central Europe, Middle East and Africa (CEMA), and Latin America, and fifth best in terms of shipment value growth.Western Europe

* – In 4Q09, Western Europe emerged as the leader in unit shipments with 8.2 million units. In terms of value of shipments, Western Europe is second only to the U.S.CEMA

* – In 4Q09, CEMA witnessed a major turnaround in terms of year-over-year unit growth. Following several quarters of double-digit declines, Central and Eastern Europe (CEE) and the Middle East and Africa (MEA) experienced year-over-year growth rates of –2.4% and 20.1% respectively.Asia/Pacific (excluding Japan)

* – This region dropped to third position, behind Western Europe and the U.S., in terms of unit shipments with 7.2 million units in 4Q09, yet maintained its fourth place rank in terms of shipment value with $2.1 billion. APeJ has the highest year-over-year growth rate of all regions in terms of shipment value with 18.1%.Japan

* – Japan is the third largest market in terms of shipment value ($2.2 billion), behind only the U.S. and Western Europe, and is ranked fourth in terms of year-over-year shipment value growth rate (–2.7% in 4Q09).

Vendor Highlights

HP

* – HP continues to be an irrefutable leader in the overall hardcopy market in 2009, despite losing nearly 3 points in market share to 40.8% from 43.5% in 2008. The fourth quarter was HP's best performing quarter in 2009, with 5.6% year-over-year growth in unit shipments. The EMEA region was HP's strongest in terms of unit growth in Q409, with 11% year-over-year growth, compared to 3% and 2% growth in the Americas and APeJ, respectively. In the worldwide MFP market, HP grew 12% and was able to pick up two points in market share compared to a year ago while maintaining its leadership position. Compared to a year ago, HP's printer segment experienced market share declines in 4Q09 on a worldwide basis. The vendor's worldwide printer share dropped one point to 39% as unit shipments declined 5% in 4Q09 compared to 4Q08. As held true for other vendors, HP's MFP shipments faired better than those in the printer segment.Canon

* – Despite the challenging economy, Canon finished 2009 strong, with 0.6% growth in the overall hardcopy market compared to 2008. As the number 2 vendor, Canon wasted no time in closing the gap between its position and HP's by gaining more than 2 points in market share, to 19.0% in 2009 from 16.6% in 2008. Among the top 5 vendors, Canon was the best performer in the Americas and APeJ in 2009 and the only vendor to achieve positive year-over-year trends in these regions with 6% and 11% growth, respectively. During the last quarter of 2009, Canon recorded an 8% year-over-year gain in the overall hardcopy market, shipping 6.6 million units versus 6.1 million in 4Q08. Once again, the Americas (14%) and APeJ (21%) were Canon's best performing regions in 4Q09 while EMEA suffered a decline of 8%. Between MFPs and Printers, Canon's MFPs achieved the higher year-over-year growth – 16% compared to –2% – in the worldwide market in 4Q09.Epson

* – Third place vendor Epson posted an increase of 1.1% in market share in 2009, from 13.8% in 2008. As with most vendors in the top 5, 4Q09 was the only quarter in 2009 where Epson's year-over-year growth, in terms of unit shipments in total hardcopy peripherals, resulted in a positive trend (8.4%). The APeJ region was the top performer in terms of year-over-year shipment growth at 16% in 4Q09, followed by the Americas (4%) and EMEA (3%). Epson maintained its number 3 position in both MFP and printer shipment share, as its worldwide MFP and printer shipments grew 8% and 10% respectively. In 4Q09, Epson was able to maintain its shipment share in MFPs and grow its shipment share in printers by one point.Brother

* – Hanging on to its number 4 position, Brother experienced a double-digit decline (–11.7%) in unit shipments in 2009 to 6.4 million from 7.3 million in 2008 in the overall hardcopy market. Despite suffering a setback, the vendor managed to maintain its global share of 5.7% in 2009. Compared to other top 4 vendors, Brother's 2009 year-over-year performance was average in APeJ (–1%) and the Americas (–10%), and was next to last in EMEA (–18%). Except for 1Q09, Brother continued its negative year-over-year trend throughout 2009, posting growth of –14.7% in 4Q09, making it the worst performer in the top 5 in the last quarter of 2009. In terms of regional growth, Brother recorded 0% year-over-year growth in APeJ, –1% in the Americas, and –35% in EMEA in 4Q09.Samsung

* – Making the top 5 list for the second consecutive quarter, Samsung has been relentless in its mission to grab more share in the hardcopy market. Given the difficult economic conditions, Samsung posted a 4.8% market share in 2009, gaining 0.5 points from 2008. Compared to 2008, the vendor was the second best performer in 2009 in terms of year-over-year growth, with –2.2% growth compared to Canon's +0.6%. While achieving the best year-over-year trend (+5%) in EMEA in 2009, Samsung's results in APeJ (–6%) and the Americas (–15%) were below average when measured against other vendors in the top 5. Compared to the previous three quarters, 4Q09 was, by far, Samsung's best performing quarter, with 31.3% year-over-year growth from 4Q08, the best performance among the top 5 vendors. Although its year-over-year growth of 7% was second best in the Americas (after Canon's +14%), Samsung outperformed the other top vendors in EMEA and APeJ in 4Q09, with year-over-year growth of 39% and 35%, respectively.

Worldwide Hardcopy Peripherals Market Share and Year-Over-Year

Growth, Fourth Quarter 2009

         

Vendors   4Q09 Unit Shipments   4Q09 Market Share   4Q08 Unit Shipments   4Q08 Market Share   4Q09/4Q08 Growth

1. HP   14,099,668   41.4%   13,354,090   40.7%   5.6%

2. Canon   6,587,168   19.4%   6,092,446   18.6%   8.1%

3. Epson   5,423,381   15.9%   5,003,158   15.2%   8.4%

4. Brother   1,721,953   5.1%   2,019,596   6.2%   -14.7%

5. Samsung   1,700,286   5.0%   1,295,012   3.9%   31.3%

Others   4,484,969   13.2%   5,066,078   15.4%   -11.5%

Total 34,017,425 100.0% 32,830,380 100.0% 3.6%

Source: IDC Worldwide Quarterly Hardcopy Peripherals Tracker,

February 2010

Worldwide Hardcopy Peripherals Market Share and Year-Over-Year

Growth, 2009

         

Vendors   2009 Unit Shipments   2009 Market Share   2008 Unit Shipments   2008 Market Share   2009/2008 Growth

1. HP   45,634,426   40.8%   55,313,355   43.5%   -17.5%

2. Canon   21,207,049   19.0%   21,089,488   16.6%   0.6%

3. Epson   16,651,573   14.9%   17,513,836   13.8%   -4.9%

4. Brother   6,422,734   5.7%   7,274,669   5.7%   -11.7%

5. Samsung   5,373,591   4.8%   5,495,913   4.3%   -2.2%

Others   16,562,072   14.8%   20,418,013   16.1%   -18.9%

Total 111,851,445 100.0% 127,105,274 100.0% -12.0%