Xerox will lose a lot if the contract with Fuji is not renewed

Fuji makes the majority of the Xerox equipment. What Xerox does make is now old technology that’s in dire need of a refresh. The contract between Xerox and Fuji basically gives Fuji exclusive rights to sell in the Asia Pacific region and Xerox the rights to sell in the rest of the world. Icahn has already said that he doesn’t want to renew the contract with Fuji. That would open up the market outside of Asia Pacific to Fuji. They already have the equipment. If Xerox sales, distribution, service, & marketing are gutted and the order to the collection is a mess (which it will be based on past outsourcing results) why would Fuji be interested any more.

Good post @Xw8HUyP-3ulu . Given that Xerox doesn’t have a lot to offer on its own, the only thing that is smart to do is to go ahead with this cooperation at this moment.

Comment! It's anonymous!

6 replies (most recent on top)

Here you go: https://industryanalysts.com/8218_hp/

There is no doubt that HP is desperate for "feet on the street" to sell into the SMB A3 market. They have attempted to launch into the A3 MFP space three different times with no real success.

Quote from the Article:

"This acquisition furthers HP’s plan to disrupt the $55 billion A3 copier market and builds on its printing strategy to: enhance its A3 and A4 product portfolio; build differentiated solutions and tools to expand its Managed Print Services (MPS); and invest in its direct and indirect go-to-market (GTM) capabilities."

If HP REALLY wanted to "disrupt the $55 billion A3 copier market" they would acquire Xerox.

Someone told me that last year HP acquired the Europe equivalent of GIS, although I was never able to find confirmation in the news. Food for thought.

XRX also makes Nuvera

@1wnz - I totally agree. I personally think Icahn and team are transforming Xerox into an SMB Sales Powerhouse vs. Technology Powerhouse. They will inquire with those who may be interested in purchasing a newly slimmed down national SMB sales organization and sell to the highest bidder. And then, we will put our sticker on whatever machine they want us to sell and hit the streets.

Potential buyers include Fuji, HP, Private Equity, Office Max (in light of Staples acquisition), or another manufacturer like Canon or KM. If we don't sell to Fuji, we will keep iGen & Impika/Trivor as well as the other technology being developed, and we continue on as a different kind of company.

The only products Xerox makes these days are iGen and that is a good machine.

Most, if not all, our A4 are Samsung

Most, if not all, our A3 are FX

Xerox is basically a dealer for these companies and could tomorrow put a Xerox logo on Cannon (That's what HP does for A3 and laserjet A4) or Konica.

Icahn and his cronies don’t understand the industry. Any customer today is at risk from this partnership divorce due to supply chain. Xerox would be hard pressed to retool and retrain. I am sitting back and eating popcorn.

Thread regarding Xerox Corp. layoffs

Xerox will lose a lot if the contract with Fuji is not renewed

6 replies (most recent on top)

Post a reply