Xerox to Stop Selling Wide-Format Products US and Canada by the End of 2011

Has anyone else hear anything about this??

Just found this!!!!

Is Xerox discontinuing its involvement in the wide-format, black & white equipment business?
FURTHER UPDATE ..... AND BREAKING NEWS !!!!


From: Quinn, Patti

Subject: Xerox's Wide Format Statement

Date: March 1, 2011 4:10:56 PM EST

To: Joel Salus


Joel, per your request, here is Xerox’s statement regarding Wide Format:



Xerox will stop taking orders for wide format products in the U.S. and Canada in 2011, with specific timing based on inventory levels.



Xerox’s European and Developing Market operations will continue selling wide format products and will source new products.



Xerox prioritizes each investment, allocating research and development dollars to areas where the company can deliver the best value to the marketplace. As a result of this practice, Xerox has opted to not invest in wide format product engineering in 2011.



Customers will continue to have access to service support, supplies, media and parts from Xerox for their existing equipment for a minimum of five years from the last install of a particular product line. Customers with questions can contact their Xerox Account Manager.



Scott Frame, vice president, Wide Format, Xerox Corporation



Patti Quinn



Xerox Corporation

Director, Business Groups Public Relations

100 South Clinton Avenue - XRX2 004

Rochester, NY 14644

585-264-2842

patti.quinn@xerox.com


_______________________________________________________________

THIS IS AN "UPDATE" TO THE "ORIGINAL" POST BELOW:

I just heard from another Xerox wide-format dealer, via e-mail. He said the news is true, that Xerox is pulling out of the wide-format b/w equipment business. Apparently, there was some sort of conference call today with Xerox wide-format equipment dealers.

And, I just received another e-mail, this one from a person who is with one of the industry's "other" wide-format equipment vendors. This person confirmed that he'd heard the same thing

HOWEVER, I don't think that anyone should consider this "news" to be "real" until Xerox confirms that it is real.

I can still recall how enamored i was with our first Xerox wide-format plain-paper copier, the Xerox 1860 [which none of you younger people have ever heard of, so, yes, showing my age (and am damn proud of that.)] We purchased that system for $115,000. It was as slow (maybe even slower) than molasses. But, over the years, we ALL made a lot of money with Xerox wide-format equipment.

THIS WAS THE ORIGINAL POST:

Early this afternoon, I received an e-mail from one of my blog visitors; the only thing in that e-mail was this question:

Subject: any word on Xerox bailing out on wide format gear?

Afterwards, I sent this e-mail to the person who asked me that question:

Hi _______,

Would I be correct in assuming that you got my e-mail address from my blog? (Reprographics 101)

I haven't heard any news about Xerox discontinuing wide-format. I would actually be surprised if Xerox did that, but not totally shocked.

Prior to this recession kicking in, the brands (in terms of wide-format b/w toner-based equipment placements) were ranked OCE, KIP and Xerox, in the U.S. market. That's not the same in Europe, where OCE ranks #1 and Xerox ranks #2 (KIP is a distant 3rd in Europe.) I don't think the recession has changed this all that much, except that KIP has probably gotten hurt the worst overall, since KIP is only wide-format and since OCE and Xerox are more diversified, given their small-format products

If you do hear news that Xerox is bowing-out of the wide-format marketplace, I'd love to hear about it

Where did you hear that?

Regards,

Joel

And, this was the reply:

Hi Joel-

I do not have any details other than an announcement was made this morning via conference call that the wide-format line is being discontinued when inventory is depleted.

All direct reps and dealer channel (4) reps are gone as of 3/1/11.

I was not involved in the call but heard brief details from a dealer/friend.

This certainly is disappointing for dealers that were exclusively Xerox W-F dealers.

Your contacts in the business might be able to provide more detail.

I did get your name from your blog and enjoy reading an accurate analysis of this industry and business climate.

Best regards - _________

____________________________________________________________________________________________

Which brings me to this question, directed to reprographers who are Xerox wide-format equipment dealers (and to OCE and KIP people), ….. is Xerox discontinuing its involvement in the wide-format, black & white equipment business?

Anyone have comments???

Bandit41076...What's your take on this? Have you heard anything?

There is now an official notice to customers from Xerox regarding this.

What do they mean by black & white business?

Do they mean that Xerox will continue to offer color WF?

This says to me: Xerox is not married to print.

Print will fund its expansion to services, but Xerox will cut unprofitable or unsuccessful segments along the way as it continues to diversify.

This is a quote from CEO Ursula Burns from two weeks ago about Xerox's plans for its printing business:

"It's important not to kill this business before it dies naturally,"

Its hard to to go right to Monster.com to look for a job in an emerging technology after reading stuff like this, but we live in a changing world at to Xerox's credit, it seems like they are changing with it.

Ricoh and some of the others are simply doubling-down on print, which is a reaction, but not necessarily a change.

Who's stock would you buy?

This looks legit. This provides an interesting tlk track when competing with Xerox in Wide Format transactions.

quote:

Originally posted by GIntel:
Who's stock would you buy?

I'm not sure, my question is why cut off North America and keep the others? Do they see something I don't? Double Dip coming and wide format to be down for years?

I had heard through the grapevine this AM, that a few months ago Xerox had approached Ricoh to relable the W3600 model.

I understand the need to change, we all have to understand and adapt to changing markets and technologies.

Hmmmm, which stock to buy? I say whomever buys the memjet print heads and incorporates them in thier devices is the oneI'd go for.

If I HAD to choose between Ricoh (aka IKON)and XEROX stock, I would buy XEROX. Much better leadership and they do not have the noose (IKON) hanging around their necks.

I guess this is why Ricoh just established a $25M fund to help IKON protect and upgrade it's Ricoh / Canon base. IKON is having trouble maintaining those customer accounts, due to their notorious customer service attitude of the past, which is turning end users to other manufacturers.

Even with Ricoh eliminating it's Dealer Division in the future, or one of the three current Brands, the lack of any qualified Captains on the ship will certainly lead to rough waters.

Ahoy mateys!

quote:

Originally posted by GIntel:
What do they mean by black & white business?

Do they mean that Xerox will continue to offer color WF?

I think the initial thought is that Xerox was not going to market color and would still have the LED BW engines.

This thread was posted on a KIP forum in reference to the Xerox thingy:

No, it's big.

Don't underestimate the power of the big red X.
Xerox is by far the biggest name in the Repro world.

If they thought it would make them money they could put a whole lot of dollers into R&D, fortunetly for KIP and OCE they don't see the value.

The big question now is can KIP and OCE survive, KIP has had 10 straight losing quarters and OCE is living off color.

If KIP can't come up with affordable color they wont be around this time next year.

GMAN,

I work with a Canon dealer out of San Diego that recently won a 100-plus-MFP account from IKON and IKON never knew the account was even getting bid on. The IKON techs called one day and asked if they need anything and the company told them that they have been using the Canon months. Funny how the big message behind Ricoh MPS is "change management" and this IKON transition is look colossally mis-managed.

A few notes on this Xerox thing:

Look for dealers and direct to dump inventory. I'm thinking it's going to be tougher than ever to sell wide format over the next six months or so.

Word on the street is that many Xerox dealers have placed calls to Ricoh, we'll see what happens.

KIP in trouble? KIP has not posted a profit in the last ten quarters.

I'm on a quest to identify all Xerox wide formats in my area and solicite them NOW!

Thoughts from anyone else???

KIP makes a great product and now I'm very curious as to why they seem to struggle, from what I have read over the past week. This is something I intend to pursue. It sounds like Ricoh may be signing up a few Wide Format only Dealers in the next few months, which may cause further marketplace distribution issues amongst current Ricoh (Savin and Lanier as well) Dealers.

Word has it that they are stuggling due to the economic depression, since they are only in the wide format business.

Check this link out, Joel just focuses on wide format and has some great takes on the industry!

http://reprographics.blogspot....-discontinue_02.html

quote:

Originally posted by Art Post:
I'm not sure, my question is why cut off North America and keep the others? Do they see something I don't? Double Dip coming and wide format to be down for years?

My guess here is that the US wide-format market is going to decline over the next 10 years while it will expand in developing markets. This is not because of a recession but because of the maturity of the market (though a recession would make the decline even larger).

If that's true then as a publicly-traded company, it makes sense to be involved in the markets that are expanding, not those that are contracting.