IDC : Printer Consumables Market in Malaysia Continues to Show Encouraging Growth
Kuala Lumpur, 25 September 2007 – IDC’s Printer Consumables Tracker shows that the Malaysia total consumables market (Inkjet Cartridges and Laser Toners) revenue generated close to US$90 million in the 2nd quarter of 2007 (April to June), showing sequential growth of 5% and an impressive 34% year on year growth (Compared to the 2nd quarter of 2006).
The ink cartridge market grew steadily in the 2nd quarter of 2007, with revenue achieving an 11% sequential growth from the previous quarter. The April PC Fair and a typically busy mid-year period for students have all contributed to this increase, with end-user promotions being conducted aggressively by most vendors. Home users and students, two of the main purchasers of inkjet cartridges were especially enticed to stock up more by the limited premium gifts, vouchers and value-packs given during this period.
The laser toner market, which did not fare as well as the inkjet cartridge market, registered a sequential drop in revenue of less than 1% during the 2nd quarter of 2007. This drop can be attributed to the high amount of government projects in the 1st quarter of 2007, setting a very high standard for vendors to surpass during the 2nd quarter. Despite the marginal drop in revenue from the previous quarter, the laser toner market is still going strong overall, registering year on year growth of 39% and 37% for revenue and unit shipments respectively compared to the same period last year.
Despite the inkjet cartridge market dwarfing the laser toner market in terms of unit shipments (Inkjet cartridges accounted for 82% out of the total printer consumables shipments), it is the laser toner market that has proven to be the more lucrative, capturing a market share of 58% in terms of revenue. With corporate purchasing patterns leaning more towards laser printers and multifunctional laser printers due to the lower total cost of ownership compared to inkjet printers, the laser toner market is expected to grow healthily in the foreseeable future. 
Q207 Units Shipments and Revenue – by Product Type
The Malaysia printer consumables market has also observed the rise of 3rd party products, or more widely recognized as compatible products. These third party suppliers are identified as non-printer vendors who manufacture supplies to be used on the hardware produced by the printer vendors. A combination of cheap pricing and decent quality has seen these compatible products become more popular with the price-sensitive public, resulting in the erosion of original vendors’ market share.
Original vendors are driven by the need to protect what they believe to be originally their market, while 3rd party suppliers are driven by prospect of extracting countless business opportunities from the original vendors’ market share. These varying philosophies, when planted within one marketplace, have seen a tug-of-war for market share with both parties being pushed to offer the best value for money while ensuring that quality standards are met.
The combined revenue for total printer and printer-based multifunction printer market (Single function inkjet, single function laser, multifunction inkjet and printer-based laser multifunction units) was close to US$37 million in the 2nd quarter of 2007, suggesting that there is an abundance of after-sales market opportunities for printer consumables. With such a vast market growing from strength to strength, the competition can only become fiercer. End-users have the most to gain however, with countless options available to them in choosing a product that suits their pricing and quality expectations.
Q2 2007 Malaysia Laser Toner Market Revenue - By Classification
With the 3rd quarter (traditionally one of the strongest quarters during the year) coming to a close, IDC expects the printer consumables market to perform even better. Stiff competition, a second PC fair in August and clearing of corporate budgets will likely prove to be key factors in determining the total market’s performance when the 3rd quarter closes.
IDC Asia/Pacific Quarterly Printer Consumables Tracker covers both ink cartridge and laser toner market in Australia, China, Hong Kong, Indonesia, India, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan and Thailand.
For more information about this research, kindly contact Lizzie (eshunmugam@idc.com) at 603-2169-7536: or Stephen Chong (ckchong@idc.com) at 603-2169-7521.
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