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Research Newsletter
SUMMARY
ESAM Code: Volume n. Newsletters
1989-20
0005082
PRINTER MANUFACTURING SCENE TRANSFORMED IN EUROPE
The European printer industry is experiencing a period of rapid change caused by the
increase of Japanese plants in Europe. This newsletter examines the European printer
industry changes in three parts. The first part explores the reasons behind the Japanese
influx, studies the European printer industry's recent history, and shows the results of a
Dataquest survey of Japanese printer plants. The second part looks at the European
printer market in detail and analyzes the potential impact on the semiconductor market
of the increase in local production. Finally, the third part lists the major printer
manufactmng locations in Europe by the types of printers manufactured at each site.
RECENT PRINTER INDUSTRY HISTORY
Until 1970, the European printer market was dominated by Centronics. In 1984, as
the potential demand for printers for the oncoming PC boom was recognized, European
and North American companies started to invest in new printer production sites in
Europe. European printer production focused mainly on high-quality, heavy-duty printer
products for multiuser systems. Brother was the first company to prepare for volume
dot matrix printer production in Japan.
With the boom in PC markets, there was a clear demand for low-priced,
high-quality printers. Although Centronics was the first company to provide a dot
matrix printer costing less than $1,000, the product had too many technical problems to
survive in the market. North American and European companies noted this problem and
many gave up their products in this market.
Meanwhile, two Japanese manufacturers (namely, Epson and Oki) responded with
high-quality, low-cost products that were produced in high-volume factories. With a
well-established distribution network in Europe, the Japanese producers managed to gain
a 60 percent market share; virtually all of this was in products that cost less than
$1,000. In 1987, Japanese market share had risen to 75 percent of the European market.
© 1989 Dataquest Incorporated October—Reproduction Prohibited
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