Xerox unveils strategy, for large-scale migration to color

Office World News, Apr 2001

Xerox Announces Breakthrough Color Technology for Offices, Production Environments

NEW YORK - On March 20, 2001 Xerox president and COO, Anne Mulcahy, outlined a new color strategy-supported by breakthrough technology-- designed to fuel a transformation in Xerox Corporation's core business and drive a large-scale migration from black-and-white to color documents in every market the company serves.

Speaking at a press briefing, Mulcahy showcased "the world's largest color platform," including a bevy of new color products, solutions, and services that form the foundation of "The New Xerox."

"With this incredible array of technology, we will continue to shatter the barriers to color everywhere," Mulcahy said. "Our customers are demanding it they look for faster, more cost-effective color solutions. Our business model requires it as we pursue new and more profitable sources of revenue."

As part of its color leadership strategy, Xerox spotlighted several new color offerings, ranging from the 21 page-per-minute (ppm) Phaser 2135 office color printer, to a roll-fed, continuous-feed color web press that runs 2000 ppm with customized content on every page. Also highlighted were new digital front ends and enhancements to the DocuColor series, enabling transactional printing that makes possible cost-effective production of bills, statements, and invoices in full color.

In a related announcement, Xerox said it closed a nearly $20 million multinational deal for 5000 Phaser color printers with the St. Louis-based financial services firm Edward Jones.

Xerox also provided a progress report, virtual demo, and manufacturing tour of its next-generation color technology, code-named "FutureColor", which is designed to attack the traditional offset printing market. It is on track for early customer testing later this year and launch in 2002.

Based on positive market response to new color products-and related solutions, services, and supplies -- Mulcahy said she expects Xerox's color revenue to continue to grow at strong double-digit rates. Xerox's color revenues doubled from $1.5 billion in 1997 to more than $3 billion in 2000, reflecting the success of the DocuColor line of digital color presses for print shops, the recently acquired Tektronix Phaser color printers, and the new multifunction devices for the networked office.

The company has earned a No. 1 marketshare position in digital production color with 70 percent share and is a strong No. 2 with about 25 percent share in office color printing.

Xerox and Fuji Xerox together will invest more than $715 million in color research and development this year, accounting for about 40 percent of a total $1.7 billion R&D budget. "Though we are reducing costs in many areas, we are actually ramping up the color investments that are critical to our future," Mulcahy pointed out. "Our goal is to make the vast majority of Xerox products color enabled over the next three to five years."

Even as it intensifies its color focus, Xerox will continue to its black-and-- white line, extending the reach of its DocuTech and DocuPrint production printing family with new solutions targeting high-growth markets such as short-run customized book publishing, on-demand newspaper applications, and web-based printing services.