Xerox blueprint for premier spot

Xerox has unveiled a multi-billion dollar initiative that it said will provide a 'triple threat' to rivals in the inkjet printer market.

Xerox has unveiled a multi-billion dollar initiative that it said will provide a "triple threat" to rivals in the inkjet printer market.

In a $2bn (£1.3bn) alliance with Fuji Photo Film and Sharp, Xerox will, over the next five years, develop a line of inkjet printers aimed at taking a double-digit market share in the SoHo market.

The print giant already works with Fuji Photo in a 50-50 joint venture called Fuji Xerox.

Xerox claimed that the printers will be at least 50 per cent faster than comparable products from competitor Hewlett Packard (HP), and use about 20 per cent less ink. Available at more than 12,000 retail stores, websites and other sales channels across the world, Xerox said the first printers will be available in Europe and north America within the next few months.

Rick Thoman, chief executive of Xerox, said: "The company's commitment to SoHo customers will result in dramatic growth through millions of inkjet unit placements and their associated supplies."

Ben Reitzes, an analyst at PaineWebber, said the vendor was attempting to create a product line that would provide a higher speed, lower cost alternative to HP's inkjets, which range in price from about $100 to $800.

But there were other analysts that were skeptical of Xerox's ability to take significant market share from HP, a rival it has consistently targeted for almost two years. Rob Enderle, an analyst at Giga Information Group, said: "Chasing any market leader from the back is not sufficient to offset what HP has achieved in the inkjet market."

Enderle claimed that Xerox currently had no share of the inkjet printer market and neither do its partners Sharp or Fuji. "They are really non-players in this market, and when you add zero plus zero plus zero, you still come up with zero," he said.

The two market heavyweights are HP and Epson, Enderle said, followed by Lexmark and Brother in the second tier.

"But HP is clearly the dominant player, and this announcement will not lead to a competitive market overnight," he said.