Revenue of Malaysia Laser Toner Market Continued to Experience Double-Digit Sequential Growth in Q3 2006

26 December, 2006

Kuala Lumpur, December 26, 2006 –IDC's results show that Malaysia total consumables market (ink cartridges and laser toner) reached US$68 million in the third quarter of 2006. Laser toner registered 14% sequential growth, or US$41 million in Q3 2006. Ink cartridge market, on the other hand, continued to expand to contribute 40% revenue share, or US$27 million, in the third quarter of 2006.

According to Q3 2006 IDC Asia/Pacific Quarterly Printer Consumables Tracker, laser toner remained its revenue domination in the Malaysia printer consumables market, which made up 60% of revenue share in Q3 2006. In term of unit shipments, however, ink cartridge took its lead with more than 83% share in Q3 2006. The detailed breakdown by product type, in revenue term, is shown as below:

Laser toner market

The deteriorating price for the laser printer has encouraged more usage of laser printer from Malaysian users, especially from home and SMB sectors. Meanwhile, large corporation is also still heavily dependent on paper. These factors have contributed positively on laser toner shipments in Malaysia.

Most hardcopy peripherals vendors make the most of their revenue from consumables. The revenue generated from consumables was more than double from the revenue generated from hardware business in Q3 2006.

The study also shows that revenue share of original vendor dropped from 84% in Q3 2005 to 77% in Q3 2006. Share of third party suppliers is expected to erode the share of the original vendors in the future. These third party suppliers have consistently improve and develop new technology to catch up with original vendors. The better technology will enhance users' confidence when using third party laser toners. In few developed countries in Asia Pacific, refilled and remanufactured toners are more popular due to recycling purposes. Malaysia is anticipated to follow the similar trend in the future.

Ink cartridge market

"Original vendors such as Brother, Canon, Epson, HP, Lexmark face stiff competition in ink cartridge market as there are few successful local third party suppliers such as Esy, SaintInk, and Imprint that offer low-priced products, which attract users to purchase compatibles products instead of original ink", says Emily Tee, Peripherals Research Analyst, IDC Malaysia.

According to the study, revenue share of original vendor dropped from 81% in Q3 2005 to 76% in Q3 2006 in Malaysia ink cartridge market. Within the original ink cartridge segment, the top 2 original ink vendors, namely Canon, HP accounted for more than 81% revenue share in Q3 2006. These two vendors were also the top 2 vendors in Malaysia inkjet single function printer market.

IDC defines third party suppliers as non-printer vendors who manufacture supplies to be used on the hardware produced by the printer vendors.

For more information about purchasing this research, please contact Hazmi Yusof at +603-2169-7522 or hyusof@idc.com; or Stephen Chong at +603-2169-7521 or ckchong@idc.com

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