The market for manufacturing printers appears to be flourishing. Manufacturers are undoubtedly considering growth and developing innovative products to seize the expanding market. For the sole purpose of expansion, firms are interested in the color printer market. Since every manufacturer is focused on keeping prices low in order to corner the market, there is fierce competition among them. It must be noted that while Hewlett-Packard Co. dominates the monochrome industry, the dominant company in the color market is still up for debate.
However, many who invest in these businesses claim that the market for color printers has a promising future. Investors are very enthusiastic since these printers will create images of a considerably higher caliber and will use four times as much cyan, magenta, yellow, and black toner as a monochrome printer. The market, which is now a $1 billion sector, will grow significantly.
The printing industry major Lexmark expanded its product line last June when it unveiled the c52x series, which featured the c524n. Prior to this, there was a significant gap in its color lineup; the only option was the entry-level C510, which could only print roughly 8 color and 30 monochrome images in a minute. There was also the high-end c762, which, despite having a faster speed, was significantly more expensive and therefore difficult for smaller offices and home users to acquire. Because no other product met the needs of the users, Lexmark’s rivals had an advantage over it.
But things changed when Lexmark introduced the c524n.
They made this product available by introducing it at a very cheap price point. This network-ready color laser printer provides an excellent color output and a print speed of up to 20 sheets per minute while offering a dpi resolution of 1200*1200. Printing the first page could take as little as 13 seconds. The model has a pretty amazing maximum duty cycle per month of 65000 pages. The new c524’s 437.5MHz processor and 128Mbytes of memory significantly shorten the time required for print jobs. The RAM can be increased to 576, which reduces the amount of time print jobs must wait. Additionally, Lexmark’s coverage estimator and color care technology aid in controlling the expense associated with utilizing color toner. The 57-pound model is 17.3 inches wide, 19 inches high, and 20.2 inches deep. A power cord, a paper exit expansion tray, a setup sheet, toner cartridges for cyan, yellow, magenta, and black, a CD containing the user manual and the printer software, and other accessories are also included with the model. For on-site repairs, the product has a one-year warranty duration.
It goes without saying that outsourcing IT and consumer electronics reduces the expenses of production, which helps to bring down the cost of the final product. How thinly must firms keep their profit margins in order to compete in the market for color printing today?
The C524n was analyzed in the current analysis lab at a 1,20,000 unit product volume under the presumption that the model was made in China. The price of purchasing common components, the price of producing fabricated components, and labor rates in various locations were all examined. Around £265 per unit was predicted to be the production cost. The printer mechanism and its assembly were estimated to cost roughly $51 according to the cost distribution. £60 goes toward the electronics and construction. The assembly of the control panel, the electronics, the consumables, the fuser, the paper, the consumables assembly, the final arrangements, etc. were all additional expenditures.
The product was scheduled to cost £390 when it was first introduced. However, in other locations, Lexmark priced the device at less than half of what was initially anticipated. The business made a savvy move by fitting the toner with several toner cartridges in order to increase its earnings. With respect to the customer’s budget, the toner content was either increased or decreased. While the less expensive models with low yield cartridges were best for small offices and home users, the more expensive models with more toner catered to the needs of the enterprise segment.
The product was a huge success because it was affordably priced, precisely suited to fulfill the needs of consumers and manufacturers, and able to compete with its rivals in the lucrative market for color printers. The print quality, according to Lexmark, was photorealistic. Due to the new print head’s four lasers housed in one unit with a mirror, which delivers a 1200*1200 dpi resolution, and its chemically processed, spherical toner. The device gave Lexmark the opportunity to compete with their rivals, particularly Hewlett-Packard, in the enterprise market.