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Toner Cartridges – Revenue Growth Seen in Western Europe Markets

The OEM and compatible toner cartridge distribution centers across the Western Europe Market are experiencing a 2% and 6% year-on-year growth in the first 22weeks of 2014.

The report is provided by the European IT Market Research Company. This only implies good news as the revenue performance of both OEM and compatible toner cartridges has improved on a year-on-year basis. Furthermore, the report intimated that the increase in cartridge revenues was dictated by the Average Selling Prices (ASP). The slight 5% mark-up year-on-year did not affect the revenue projections of Companies, although distribution sales target slipped to 3% year-on-year.

Growth Rates. It was noted however, that Xerox is the only Company that registered the highest growth rate at 32% in year-on-year unit sales among OEMs. The increase in unit sales represents a significant rise in revenues as well. On HP front it saw a decline as unit sales and revenues drop by 7% and 3% year-on-year. However, HP is optimistic that the soft toner sales will continue to be felt in the Western Europe market up to the remainder of the year.

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Revenues. Meanwhile, compatible toner cartridges sales decreased by 9% in 2014 year-to-date, but still resulted in a 16% and 6% growth rate representing slight increases in unit sales and revenues. Despite the not so rosy performance of compatible toner cartridges, it still posted positive gains in terms of sales and revenues. The report figures represents the early weeks of 2014. The coming weeks up to the end of the year might see a very encouraging growth rate.

Market Share. Talking about vendor market share, it appears that HP experienced a turnaround. HP grabbed the lead with 46% in the OEM toner cartridge category. This is closely followed by Samsung at 17%, while Brother and Lexmark followed suit at 8% market share each in 2014 year-to-date. There was no mention of the market share for compatible toner cartridges in the report.

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The Western Europe market is volatile. Companies catering to both OEM and compatible toner cartridges can experience surges in growth or significant decline in sales and revenues. We just need to see if the revenue growth can be sustained in 2014.

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