Tuesday, March 1, 2011

Is Xerox discontinuing its involvement in the wide-format, black & white equipment business?


From: Quinn, Patti

Subject: Xerox's Wide Format Statement

Date: March 1, 2011 4:10:56 PM EST

To: Joel Salus

Joel, per your request, here is Xerox’s statement regarding Wide Format:

Xerox will stop taking orders for wide format products in the U.S. and Canada in 2011, with specific timing based on inventory levels.

Xerox’s European and Developing Market operations will continue selling wide format products and will source new products.

Xerox prioritizes each investment, allocating research and development dollars to areas where the company can deliver the best value to the marketplace. As a result of this practice, Xerox has opted to not invest in wide format product engineering in 2011.

Customers will continue to have access to service support, supplies, media and parts from Xerox for their existing equipment for a minimum of five years from the last install of a particular product line. Customers with questions can contact their Xerox Account Manager.

Scott Frame, vice president, Wide Format, Xerox Corporation

Patti Quinn

Xerox Corporation

Director, Business Groups Public Relations

100 South Clinton Avenue - XRX2 004

Rochester, NY 14644





I just heard from another Xerox wide-format dealer, via e-mail. He said the news is true, that Xerox is pulling out of the wide-format b/w equipment business. Apparently, there was some sort of conference call today with Xerox wide-format equipment dealers.

And, I just received another e-mail, this one from a person who is with one of the industry's "other" wide-format equipment vendors. This person confirmed that he'd heard the same thing

HOWEVER, I don't think that anyone should consider this "news" to be "real" until Xerox confirms that it is real.

I can still recall how enamored i was with our first Xerox wide-format plain-paper copier, the Xerox 1860 [which none of you younger people have ever heard of, so, yes, showing my age (and am damn proud of that.)] We purchased that system for $115,000. It was as slow (maybe even slower) than molasses. But, over the years, we ALL made a lot of money with Xerox wide-format equipment.


Early this afternoon, I received an e-mail from one of my blog visitors; the only thing in that e-mail was this question:

Subject: any word on Xerox bailing out on wide format gear?

Afterwards, I sent this e-mail to the person who asked me that question:

Hi _______,

Would I be correct in assuming that you got my e-mail address from my blog? (Reprographics 101)

I haven't heard any news about Xerox discontinuing wide-format. I would actually be surprised if Xerox did that, but not totally shocked.

Prior to this recession kicking in, the brands (in terms of wide-format b/w toner-based equipment placements) were ranked OCE, KIP and Xerox, in the U.S. market. That's not the same in Europe, where OCE ranks #1 and Xerox ranks #2 (KIP is a distant 3rd in Europe.) I don't think the recession has changed this all that much, except that KIP has probably gotten hurt the worst overall, since KIP is only wide-format and since OCE and Xerox are more diversified, given their small-format products

If you do hear news that Xerox is bowing-out of the wide-format marketplace, I'd love to hear about it

Where did you hear that?



And, this was the reply:

Hi Joel-

I do not have any details other than an announcement was made this morning via conference call that the wide-format line is being discontinued when inventory is depleted.

All direct reps and dealer channel (4) reps are gone as of 3/1/11.

I was not involved in the call but heard brief details from a dealer/friend.

This certainly is disappointing for dealers that were exclusively Xerox W-F dealers.

Your contacts in the business might be able to provide more detail.

I did get your name from your blog and enjoy reading an accurate analysis of this industry and business climate.

Best regards - _________


Which brings me to this question, directed to reprographers who are Xerox wide-format equipment dealers (and to OCE and KIP people), ….. is Xerox discontinuing its involvement in the wide-format, black & white equipment business?

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