Report

PSA Technology: Potential for Further Printer / Copier Industry Consolidation

Pelham Smithers discusses Lexmark’s potential sale and suggests this could revive interest in further consolidation in the Printer / Copier Industry.
Underlyings
Brother Industries Ltd.

Brother Industries is mainly engaged in the manufacture and sale of sewing machines, information related equipment, and machine tools. Co.'s principal products and services are color laser printers, inkjet printers, fax machines, electronic stationery, scanners and typewriters; home sewing machines, and home cutting machines; industrial sewing machines, machine tools, garment printers, and industrial parts; commercial-use online karaoke systems and content distribution services, as well as fitness lessons system for fitness studio; and industrial inkjet printers and digital printing machines. In addition, Co. is also involved in the sale and leasing of real estate.

Canon Inc.

Canon and its subsidiaries are engaged in the manufacture and sale of office multifunction devices, plain paper copying machines, laser printers, inkjet printers, cameras and lithography equipment. Co. sells its products principally under the Canon brand name and through sales subsidiaries. Each of these subsidiaries is responsible for marketing and distribution to retail dealers in an assigned territory. As of Dec. 31, 2017, Co.'s manufacturing is conducted primarily at 30 plants in Japan and 18 plants overseas. Co. operates its business in four segments: Office Business Unit, Imaging System Business Unit, Medical System Business Unit, and Industry and Others Business Unit.

Hewlett Packard Enterprise Co.

Hewlett Packard Enterprise is a technology company. The company's segments are: Hybrid IT, which provides a portfolio of infrastructure and solutions including servers, storage, and HPE Pointnext services; Intelligent Edge, which is comprised of cloud solutions that include wireless local area network, campus and data center switching, software-defined wide-area-networking, security, and associated services to enable secure connectivity; Financial Services, which provides investment solutions for customers that facilitate technology deployment models; and Corporate Investments, which includes Communications and Media Solutions, Hewlett Packard Labs and certain business incubation projects.

Konica Minolta Inc.

Konica Minolta and its affiliates are mainly engaged in the manufacture and sale of information technologies related equipment, optical and sensing devices, and healthcare equipment. Co.'s principal products are multi-functional peripherals ("MFPs"), laser printers, filing devices, facsimile machines, and equipment for production printing systems and graphic arts, as well as related solution services; digital X-ray diagnostic image systems, digital mammography, and diagnostic ultrasound systems; and lens units, pickup lenses for optical disks, TAC films for LCD polarizer, and high-precision photo plates. In addition, Co. is engaged in the operation of planetariums.

Kyocera Corporation

Kyocera is engaged in fine ceramic components, electronics devices, equipment, services and networks. As of Mar 31 2018, Co. has 230 subsidiaries and 4 affiliates outside Japan and 23 subsidiaries and 7 affiliates in Japan. Co.'s customers include individuals, corporations, governments and governmental agencies. Co. categorizes its operations into seven reporting segments: Fine Ceramic Parts Group, Semiconductor Parts Group, Applied Ceramic Products Group, Electronic Device Group, Telecommunications Equipment Group, Information Equipment Group, and Others.

LEXMARK INTERNATIONAL INC-A

Ninestar Corporation

Samsung Electronics Co. Ltd.

Samsung Electronics is engaged in the manufacture and sale of electronic goods, communication products, semiconductors, telecommunication equipment, home appliances and other similar products. Co.'s products are mobile phones, MP3 Players, DVD players, video equipment, including Blu-Ray, TVs and VCRs; household appliances, including microwave ovens, refrigerators, home air conditioners, washing machines, ultrasonic humidifiers, dehumidifiers, vacuum cleaners and other small electrical goods; audio equipment, including semiconductors, information systems, and computers; miscellaneous parts; other products, including automatic vending machines, refrigerated display cases and electric tools.

Seiko Epson Corp.

Seiko Epson and its affiliates are mainly engaged in the development, manufacture, sale and provision services of information-related equipment, devices and precision products, sensing and industrial solutions, and others. Co.'s principal products include inkjet printers, page printers, color image scanners, serial impact dot matrix printers, POS system products, inkjet label printers, 3LCD projectors, high-temperature polysilicon TFT panels, label printers, smart glasses, personal computers, crystal units, quartz sensors, CMOS LSIs, watches and movements, metal powders, surface finishing, industrial robots, IC handlers, industrial inkjet printing systems, sensing systems and others.

Sharp Corporation

Sharp is an electronics manufacturer. Along with its subsidiaries and associated companies, Co. is mainly engaged in the manufacturing and sales of telecommunications equipment, electric and electronic application equipment, and electronic components. Co.'s principal business segments are IoT Communications, Health and Environment Systems, Business Solutions, Camera Modules, Electronic Components and Devices, Energy Solutions, and Display Devices. Co.'s principal products are mobile phones, tablets, electronic dictionaries, calculators, refrigerators, POS systems, electronic, camera modules, sensor modules, proximity sensors, solar cells, and LCD color televisions.

Toshiba Tec Corp.

Toshiba Tec is engaged in the development, manufacture, sale and maintenance services of office equipment and electric machinery. Co.'s principal products include point-of-sale (POS) systems and related software, Kiosk systems, displays, self-checkout systems, color multifunction peripheral devices, automatic ID systems including barcode printers and radio-frequency identification (RFID) printers, desktop and mobile printers, and inkjet heads. Co. provides its products under the name of "Toshiba" and "Tec" in Japan, as well as "Toshiba" in overseas.

Provider
Pelham Smithers Associates Ltd
Pelham Smithers Associates Ltd

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries. 

The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012. 

Analysts
Pelham Smithers

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