Predicting that Kodak's move into the market will come as early as next year, analysts say the company most likely will focus on photo printers at the consumer level.
Speculation is in the air about when Eastman Kodak Co. will introduce consumer inkjet printers, with analysts predicting that the company's move into that market will come as early as next year.
One indication that the company may be headed in that direction is the announcement Wednesday of a CEO shift, with Daniel Carp out and former Hewlett-Packard Co. executive Antonio Perez now in the top spot.
"Perez has intimate knowledge of the inkjet market from his time at HP," said Jim Forrest, a senior analyst at Lyra Research Inc. "That might not be the only reason they chose him, but it certainly won't hurt when they make a play in that market."
Kodak first revealed that it was eyeing a share of the inkjet printer pie when it announced in September 2003 that it would be changing the company's focus away from traditional cameras and film, and toward digital imaging. Although the company hasn't revealed details on a possible foray into inkjets, Kodak has noted that such a move is still part of its plan.
When Kodak does make the leap, it will have enough experience in the industry to back up the effort, Forrest said. Lexmark International Inc. used to build printers with Kodak's logo on them, he noted, with ink provided by Kodak. "They have a long history of ink chemistry," Forrest added.
Kodak's entry into the market is likely to shake up a competitive space. The inkjet market is a multibillion-dollar industry, where most of the money is made from ink cartridges. Top players include Lexmark International and Hewlett-Packard, but the company likely to be most affected by a Kodak move is Seiko Epson Corp., Forrest said.
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"If Kodak goes into the market at a consumer level, it would probably be with photo-specific printers," he said. "These are the killer app in the market, because they use tons of ink. Since the ink is where the money is, and Kodak has the name recognition in the photography trade, it would be the most logical move."
Although there are several photo-specific printer developers, Forrest noted that Epson has been particularly aggressive in capturing the advanced-amateur photography market. But a move by Kodak could take at least some of its share.
"There's a lot of competition in this space," Forrest said. "But Kodak's got a good shot."
