Lexmark to exit inkjet printer market
By David Bayon
Posted on 28 Aug 2012 at 13:17
Lexmark will stop making inkjet printers and cut 1,700 jobs as part of a cost-cutting restructuring move.
The US company has struggled to compete in an inkjet market dominated by Canon and HP. Earlier this year, it began to shift its focus away from consumer inkjets by quietly withdrawing from high street stores such as PC World.
Lexmark will stop all inkjet development worldwide by 2013, and close its Philippines-based inkjet supplies manufacturing plant by 2015. This will provide annual savings of $85 million, rising to $95 million by 2015. The total restructuring cost before tax is expected to be $160 million.
The company is also looking into the possible sale of its inkjet-related technology.
"Today's announcement represents difficult decisions, which are necessary to drive improved profitability and significant savings," said Paul Rooke, Lexmark chairman and chief executive officer. The move will allow Lexmark to focus on "higher value imaging and software solutions" and the "synergies between imaging and the emerging software elements of our business".
Lexmark also announced plans for an additional $100 million of share repurchases before the end of this year.
Lexmark has made advances in its inkjet technology in recent years, but remains some way behind Canon and HP both in the quality of its devices and in sales.
Experiments with innovative form-factors aside, Lexmark has concentrated on pushing an app-like experience on its inkjets, with smartphone-style touchscreen interfaces.
More recently, its OfficeEdge devices successfully blurred the line between inkjet and laser output - albeit at a high price.
Lexmark will continue to provide service, support and aftermarket supplies for its inkjet owners, while it concentrates on more successful laser products.
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At last some good news.
By metalmonkey on 28 Aug 2012
It would take a lot for me to go back to Lexmark. I guess their market research confirmed that everyone else felt the same way.
By Mark_Thompson on 28 Aug 2012
Having just been in the market for a new printer and being put under pressure to buy either a Kodak or Lexmark (without success) by their reps, I bought the best printer I could and that was a Canon MG8250, it does exactly what I wanted and I couldn't find either a Kodak or Lexmark that could provide me with what I wanted.
And for the record neither did Epson or HP come into consideration due to the lack of certain functionality.
By SKINHEAD1967 on 28 Aug 2012
Expensive and not very good
The printer company that more than any other charged you for their product via toner purchases. Not sure their toner was any good either, someone gave me a print from one once and it faded very fast; the prints displayed in the same place but for longer and printed on a Canon, Epson and HP are still in pristine condition.
By SwissMac on 29 Aug 2012
********** SKINHEAD1967 *************
Last I knew Canon used separate ink tanks and print heads, so no need to do any refiling
By invalidscreenname on 29 Aug 2012
Pricing strategy wrong
Anyone who knew what they were about worked out that it was cheaper in the long run to buy any other printer than a lexmark. As someone else said, good news !!
By repcomms on 30 Aug 2012
It was a Hassle with my Apple iMac & MacBook Pro
I wish I had never bought one! It was nothing but hassle. I gave feedback to Lexmark about the problems, but I don't think they were remotely interested. So, no surprise they are pulling out!
By jrk777 on 12 Sep 2012
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