Monday, September 14, 2009

Canon & HP "Two MFP GIANTS for an Alliance"


One of the Print4Pay Hotels predictions for 2009 came full circle today. In a press release dated today, Canon announced that that HP will now resell Canon branded MPF's!

The terms of the deal were not disclosed however it was noted that HP will sell the Canon brand now and in the future the model and name will shift to HP.

Many questions will need to be answered such as:

Will HP be able to sell the entire line if imageRUNNERS?

Will they also have access to imagePRESS?

Will HP be able to provide traditional type MFP service and be good at it?

How will HP compete in the after market, will they be more aggressive or less aggressive with cpc's.

Since HP is HP, will they place Canon MFP's in MPS engagements and just charge a cpc and nothing for the hardware?

Many, may ripples will come out this huge deal!

What will Canon dealers do when HP resells the Canon MFP equipment at 10% margins or less, better yet how will Canon Business Solutions be able to compete with HP with their own products?

There's an old saying, "what comes around goes around". For years Ricoh dealers had complained about the saturation of the market for Ricoh, Savin, Ikon, Lanier, and Direct Branches. Now the same could be true for Canon, anfter the Ikon acquisition by Ricoh, Canon set it's focus on signing more dealers and feet on the street had them putting on many disgruntled Ricoh Dealers. So, Canon has added more dealers across the nation, lost Ikon, but has now added a GIANT that is in every ones market.

Is the beginning of Canon making a play to buy HP? We seen crazier things right?

-=Good Selling=-

7 comments:

Anonymous said...

Don't over-react Art. You're reading things that are not printed.

No where in the release does it say Canon device will become HP branded.

Don't think Canon is that short-sighted to ink one deal that would crush both the Indies AND CBS, plus operations in Europe.

Art Post said...

Anon:

You should read more than one press release, go here for this release in jp: http://www.reuters.com/article/rbssTechMediaTelecomNews/idUST14164320090914

I'd say that's a reliable source, wouldn't you?

Art

Anonymous said...

Unfortunately, that's not a press release; it's an interpretation by Reuters. It's incorrect.

There has only been one global news release from Canon on this topics, and that's not it.

Art Post said...

Anon:

Understood about the news link, however there has to be some brand name. I'll bet dollars to dounuts that a NEW brand will not enabled. Thus with that, HP's machines will either have the Canon Brand or the HP Brand.

Keep in mind that usually I refuse to post threads from Anon's, however in this case the information is usefull and a good topic for discussion.

Art

Bob said...

Not sure what you mean about Canon buying HP, do you mean HP's printer business? As a company, HP is nearly 2.5x larger than Canon (in terms of market cap), and thus probably WAY out of reach.

Art Post said...

Bob:

Thanx for the comment. Acutally, yes buy HP printer business, sorry I'm an old copier guy and when I think about HP I think of them in one facet, the printer business. I should have made that a little clearer for everyone.

Art

TBA said...

Ok, not anon any longer.

No takers that there will be a new name. But I think it unlikely that Canon will get into an OEM relationship on the imageRUNNER technology. I believe the Canon brand will remain on the devices HP sells.

I would expect more details next week from the Canon show in Las Vegas.