The Mixed Bag of Imaging and Other Business Areas

Here is an interesting illustration of the imaging industry relative to other IT sectors: taken from Epson's recent earnings call, we can see where they can earn the most - printing.  The Information Equipment group is the printer business, and this distinct dynamic is visible in other companies with mixed product areas as well. Even HP, despite a slight disdain for the IPG group currently, shows a similar trend, especially when comparing their other hardware business ares. The obvious implication is that a stronger concentration on imaging products would be good for the overall business, which is indeed true as long as the right user and volume segments are targeted. But this is not an automatic recipe for success. Low end product focus does not deliver similar results, and as we know several companies are struggling to escape that segment. Which begs the question why Lexmark is evidently redoubling its efforts in the consumer channel, proudly announcing their renewed commitment to no less than six consumer-oriented stores.  This is an expensive and questionable undertaking, while other segments show more promise for volume and profit.