What keeps the dot matrix printer ticking?

The DMP is the only printer to register double-digit growth in the first two quarters of 2008-09

The DMP is the only printer to register double-digit growth in the first two quarters of 2008-09

If you are an old computer user you know, the kind who has used Unix and DOS and know that 'pwd' stands for print working directory and not the public works department then you have possibly heard the staccato drilling sound of the dot matrix printer (DMP) more times than you can remember. Of course, with the rise of the inkjets and laser printers, this loud sound was soon replaced by the quieter hum of the modern printers. And all of us thought that the DMP was dead or, at least, used only in some niche segments.

And so it should come as a surprise to many that a MAIT-IMRB study concerning the performance of the IT industry for the first-half of financial year 2008-09 found that DMPs grew by 28 per cent (from 167,150 to 214,686) in the period April to September 2008 as compared to the same period in 2007. In fact, the only other sector in the printing segment that showed any growth at all was the line printer, which grew by a comparatively miniscule 7 per cent (from 1,558 to 1,660). In the same period, Inkjet printers fell by 11 per cent (from 310,608 to 276,612) while laser printers fell by a whopping 35 per cent (from 209,737 to 136,703).

Rising revenues

But unit sales are just one part of the picture. If we look at revenues, we find that the DMP has grown by a respectable 19 per cent (from Rs 127 crore to Rs 151 crore). All the other printers have fallen inkjets by 23 per cent (from Rs 78 crore to Rs 60 crore), lasers by 43 per cent (from Rs 315 crore to Rs 181 crore) and even line printers by 5 per cent (from Rs 19 crore to Rs 20 crore). Clearly, in terms of revenue, this is the only printer that has delivered growth.

But enough of the numbers. The question is this what makes the DMP tick? To find out, iT ADDA spoke to MAIT's executive director Vinnie Mehta, who says that this is because of buying by corporate customers.

"There is a slump in households buying inkjets and laser printers," he points out. Commenting on companies who are buying DMPs, Mehta says, "The DMP is cheaper to operate and is in demand in the retail and the banking sectors."

Interestingly, there are supposed to be some DMPs that are actually costlier than entry-level lasers and inkjets, but since many laser printers and inkjets use microchips to ensure that only genuine ink cartridges are used, manufacturers of ink jets and laser printers typically tend to make more money from consumables than from the sale of the printer itself. Fortunately, this is not the case with DMPs, and the ribbon is cheaply available. This means that a DMP is still cheaper in the long run.

Double trouble

Naturally, one asks the question what is the scene with the usage of lasers and inkjets in Asia Pacific, especially with reference to cartridge sales, which will show how people are using these products. According to an IDC study in October 2008, only 59 per cent toner cartridges and 62 per cent inkjet cartridges used in Asia Pacific were originals. While loyalty rates were high (80 per cent) in Singapore, they were comparatively lower in China (46 per cent) and even lower in India (39 per cent). The IDC survey also warned that "The recent turmoil in the financial markets will inevitably impact on the printer consumables market. Particularly for countries such as India and the PRC where users are more price sensitive, this may provide opportunities to the non-original products." So, companies selling inkjets and lasers will be hurt by both poor sales of printers and problems selling original cartridges.

Therefore, no matter how you choose to look at it, the humble DMP is the star today. In fact, according to the MAIT-IMRB study, which also has a forecast for the financial year 2008-09, the DMP is the only segment that is expected to register any growth (27 per cent, from 374,700 in 2007-08 to 475,000 in 2008-09), while lasers will be the hardest hit and are expected to nosedive by 29 per cent (from 387,000 to 275,000). All the other segments desktops, notebooks, inkjet and UPSes are expected to stay flat. The writing is on the wall or, rather, on paper, hammered home by the 24 pins of a DMP's noisy print head.

QUICK TAKE
>>While lasers and inkjets are stumbling, the DMP is growing
>>This growth is fuelled by corporate users
>>This is the only segment expected by MAIT-IMRB to grow in 2008-09