DEPARTMENTAL COPIER OR PRINTER?

Office Solutions, Mar/Apr 2005 by Ritter, Lynn

Last year, HP unveiled three midrange, monochrome multifunctional units. The most compelling of these is the LaserJet 4345mfp because of its low price and its potential threat to traditional copiers. HP's boast was that with the LaserJet 4845, HP could take 10 percent of the midvolume copier market. Although this is doable, it doesn't signal the beginning of the end for copiers-yet. There are too many issues to consider before a buyer can make an intelligent decision about buying a copier or a printer in the midvolume arena.

When it comes to acquisition cost, printers win without any question, even taking into account that the average selling price (ASP) for both copiers and printers in both speed bands has decreased each year. In the 31-40-ppm speed band, in 3004, copiers cost almost eight times what printers cost. In the 41-69-ppm speed band, copiers cost almost 10 times what printers cost. At $2,595, the HP LaserJet 4845 is priced somewhat higher than the printer ASP of $1,685, but the unit does incorporate a platen and is priced well below the comparable copier ASP of $16,677.

The highest-priced model in the series incorporates finishing and is priced at $4,450. However, it's also not as capable as a copier-centric MFP. It wouldn't function very well as a departmental MFP serving the printing, copy, scanning, and faxing requirements of a 30-person workgroup. However, it could do very well in smaller workgroups that have very low output volumes of 5,000 to 7,500 pages per month of unfinished, 8 1/2 x 11-inch prints.

The A3 capability (the ability to copy onto 11 x 17-inch sheets) has always been very important in the copier world, even though, in fact, A3 output is very low compared to 8 1/2 x 11-inch (A4) output. The A3 capability is relatively more important in the midvolume area where copier vendors emphasize the importance of bookletmaking, which entails folding and saddle - stitching. Gartner/Dataquest historical shipment figures show that four years ago, among midvolume copiers, 95 to 100 percent of the devices had the A3 capability. In contrast, going back two years, our figures show that 80 to 90 percent of midvolume printers had only A4 capability, which is one reason they're less expensive.

HP contends that the LaserJet 4345mfp doesn't require costly service contracts. It's true that the LaserJet engine is reliable. But this unit is not a printer only; it's an MFP with a feeder and an optional finisher. Our research has shown that many copier reliability problems stem from the feeder and finishing units. The bottom line is that in some environments, for example when the 4345 is used primarily as a departmental printer, the unit will tend to be more or less service-free. However, even in that kind of environment, the more paper is pushed through the machine, the higher the likelihood that service problems will occur.

The HP LaserJet 4345mfp isn't a printer-only midvolume device. Instead, HP is appealing to those users who aren't quite ready to give up their copiers. The bait is twofold: lower acquisition price and no need to buy a service contract. In this age of convergence, it's not enough to be number one in printers, which HP definitely is. To appeal to all types of users, HP needs a broader product line, which it now has. Because of HP's open distribution system, it's possible for them to capture up to 10 percent of the midvolume copier market, which would be around 40,000 units

Are we in the middle of a paradigm shift, moving away from departmental copiers and toward departmental printers? Judging from our data, the answer indicates yes. In 2003, the midvolume copier market was about 450,000 and fairly stable, while the midvolume printer market had already surpassed that at almost 530,000 units. Does that mean that departmental copiers are going to go away totally and that departmental printers will replace them? No, it doesn't because there are many applications where it's still necessary to have a fully configured copier-centric device.

Large companies still value their MFPs not only for their printing, but also for their scanning capabilities. In such cases, the scanning capability will continue to drive copier-based MFP shipments and may even help stem the tide of printer-based MFP shipments. But as time goes on, we'll depend less and less on copier functionality to the point where a printeronly device will fulfill most of our needs. And the cost differential is certainly in favor of printers.

By Lynn Ritter, principal analyst, Gartner/Dataquest

Lynn Ritter is a principal analyst at Gartner/ Dataquest (www.gartner.com) where she's part of the Digital Document and Imaging group. Her coverage includes high-end copiers and printers, both monochrome and color.