Latin America Multifunction Peripheral Market to Experience Healthy Growth over the Next Five Years, IDC Study Finds

FRAMINGHAM, Mass., March 31, 1999 — The Latin America multifunction peripheral (MFP) market is in its infancy but will exhibit strong growth over the next five years, according to a new study published by International Data Corporation (IDC). IDC's new study, The Latin America Multifunction Peripherals Market, 1999, reveals total MFP unit activity grew 30% in 1998 with shipment value increasing 16% from US$8.8 million in 1997 to US$10.3 million in 1998. IDC forecasts the total MFP market to record a compound annual growth rate (CAGR) of 24.8% in unit shipments from 1998 through 2003, with more than 351,500 units shipping in the region by the end of the forecast period.

"One indication of the nascent state of the MFP market in Latin America is its relationship to the PC market," said Natalie Eisner, program manager, IDC Latin America Research. This study indicates that in 1997, the ratio of U.S. PC unit shipments to MFP unit shipments was approximately 18 to 1. IDC predicts this figure will fall to around 9 to 1 by 2002. In Latin America — while the trend also indicates increasing penetration of MFPs in the PC document world — IDC believes it will occur at a much slower pace. For example, in 1997, the PC-to-MFP ratio in Latin America was 41 to 1. By 2002, the ratio is expected to drop to 25 to 1.

Another factor pointing to the newness of MFPs in Latin America is the extent to which they are displacing printers. In 1997, MFP shipments in the U.S. accounted for 9% of desktop printer shipments, while in Latin America MFPs represented only 3% of printer shipments.

IDC's study reveals inkjet is the most popular MFP technology in Latin America, accounting for nearly 82% of total shipments in 1998. From 1997 to 1998, the color and monochrome split more than reversed itself. In 1997, color models accounted for just 35% of total inkjet MFP shipments. By the end of 1998, color units represented nearly 88%.

While inkjet will continue as the dominant technology for MFPs — accounting for 85% of total shipments in 2003 — IDC expects laser MFPs to show the highest growth rates of the three MFP technologies, with its five-year CAGR nearing 31% in unit terms and 20% in value terms.

The MFP market in the overall region is dominated by three main vendors — Xerox, Hewlett-Packard, and Canon. These top players accounted for 84% of unit shipments and nearly 87% of end-user shipment value in 1998.

The Latin America Multifunction Peripherals Market, 1999 report quantifies the MFP market by providing key data for all major vendors in the technologies of laser, inkjet, and thermal transfer as well as analyzing the salient issues and market trends. It contains IDC's review and forecast of the Latin America MFP market for the years 1997 through 2003 for Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela. Unit shipments and shipment value information is presented. Market shares for 1997 and 1998 by technology and speed class, if applicable, for units and shipment value are shown for comparative purposes.

The study is available for purchase by contacting Daniel Cardamone at 305-267-2616 or dcardamone@idc.com. For more information about IDC's Latin America Research programs, please contact either Beth Freedman or Lisa Bloom at 508-872-8200.

With a network of six country offices in Latin America and two regional offices — in Silicon Valley, Calif. and Miami — IDC provides full market coverage of PCs, mainframes, Unix systems and workstations, servers, desktop printers, professional services, local area networks, the Internet, RDBMS software, distribution channels, NT, and IT spending patterns in Argentina, Brazil, Chile, Colombia, Mexico, and Venezuela. IDC also conducts primary research in Peru, Ecuador, Central America, and the Caribbean. International Data Corporation is the leading supplier of IT market information on Latin America.

About IDC

International Data Corporation is the information technology industry's most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC provides data, analysis, and advisory services to the world's leading IT suppliers as well as IS professionals in finance, insurance, entertainment, advertising, consumer goods, and publishing. IDC's research and opinions are based on the results of more than 300,000 end-user surveys, in-depth competitive analysis, broad technology coverage, and strategic analysis. IDC is committed to providing global research with local content through its 500 analysts in more than 40 countries worldwide. Additional information on IDC can be found on its Web site at http://www.idc.com.

IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.

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