Colour equals money for Fuji Xerox

Xerox estimates the total market for colour printing around the world as $US21 billion and growing, with the company pushing hard the transition to colour from black and white – launching 19 colour products into the market over the past two years. Xerox’s colour revenue grew 14 percent in the third quarter this year and colour now represents 34 percent of the company's total revenue.

Andy Lambert, Managing Director of Fuji Xerox Australia, says the success his company is currently enjoying around the world is also reflected on a local level. “The early adoption of colour printing in Australia has seen the market grow at a phenomenal rate and is estimated to be worth $1.2 billion today,” he says. “And it’s growing.”

Colour revenue for Fuji Xerox Australia has grown 23 per cent through the second quarter of the year and colour now represents 52 per cent of total revenue. More than half of the company’s equipment sales now come from colour products, with equipment sales up by 40 per cent this year.

“The value from colour pages generates a strong annuity stream that contributes significantly to Fuji Xerox Australia’s results,” says Lambert. “About 62 per cent of Fuji Xerox’s total revenue comes from post-sale and financing revenue, which is primarily the annuity from supplies and services.”

On an international level, colour pages were up 39 per cent through the third quarter of this year and now represent 9 percent of total pages, more than double from two years ago. Anne Mulcahy, chief executive officer of Fuji Xerox, says the company profits from the transition to colour as the printouts generate more revenue than from black-and-white pages.

“We expect more than 30 billion colour pages to be printed on Xerox systems this year alone. The value from colour pages generates a strong annuity stream that boosts our results," said Mulcahy.