issue18en1109 by Recycling Times Media Corporation

Issue 18 | September 2011

Recycling Times Magazine

RecyclingTimes

Tech Zone

RecyclingTimes

By the Industry | For the Industry

Up In The Air

Issue 18

18 What is cloud computing?

September

20 Cloud-activated printing, peripherals, supplies and resolution wars

25 Major OEMs release Q2 financial reports

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Recycling Times Magazine

Tech Zone

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September 2011

Recycling Times Magazine

editorial

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Publisher & Managing Director Tony Lee +86 (0)756 3919260 Directors David Gibbons +86 (0)756 3919261 Sabrina Lo +86 (0)756 3919266 Editorial Consulting Editor Art Diamond Editors Johanna Breen Lu Di +86 (0)756 3919268 translator@therecycler.com.cn Tina Chou +86 (0)756 3959286 editor03@therecycler.com.cn Sophia Jiang editor@therecycler.com.cn Jane Yu magazine03@therecycler.com.cn Designer Miracle Wei design@therecycler.com.cn Sales Sales Manager Anna Leung +86 (0)756 3919266 Account Manager Kevin Zhu +86 (0)756 3919265 Sales Executives Sally He +86 (0)756 3919263 Tobee Deng +86 (0)756 3919282 Susi Guo +86 (0)756 3959299 Operation and Marketing Operation Manager Charles Lee +86 (0)756 3919267 Operations Assistant Sunny Zhang +86 (0)756 3959282 Accounting Feng Li +86 (0)756 3919269 Joy He +86 (0)756 3919262 Marketing Director Jessica Yin magazine@therecycler.com.cn +86 (0) 756 3919264 Tracy Zhang +86 (0)756 3959283 Jeven Zhang +86 (0)756 3919272 Published by Recycling Times Media Corporation

n August 5, the credit rating firm Standard and Poor’s down graded the credit rating of the US from AAA to AA+. This is the first time the country has been down graded since the beginning of debt assessment in 1941. The shockwave had immediate impact on the world economy and raised people’s concerns about the fragility of the global economic recovery. Some say that S&P not only down graded the creditability of US, but also the confidence of all investors in the world. In the imaging industry, the OEMs also suffered during these tough times. According to the Q2 financial report ended in June, Seiko Epson recorded losses of USD 39.923 million, Samsung’s net revenue dropped 18%, Lexmark’s hardware sales fell 9%, and Océ recorded a EUR 14 million loss. Meanwhile, Eastman Kodak have announced they will sell 1100 imaging related patents and Lexmark International shares were downgraded from “Neutral” to “Sell” by Goldman Sachs, with a target price of USD 25. So when it becomes difficult to make hardware sales, OEMs turn to consumables for their profits. Firmware upgrading is a tactic used by the OEMs to lock printers into using OEM consumables. The gimmick will force consumers who have been willing to buy general consumables to purchase OEM ones. Their choice will be taken away. Rumours about these tactics have been around for a while, but seemingly it has not attracted enough attention by our industry. Some say that remanufacturers can do nothing about this firmware issue because it is an OEM marketing strategy beyond anyone else’s control. However I believe there is something that can be done to face this challenge—to warn consumers about the true intentions and to say “No” to the firmware updates. This is what Static Control did. So far, there are Lexmark, Dell and IBM have adopted this firmware update tactic. There is also news about Hon Hai Precision’s new production base in Malaysia. Allegedly, the electronic contractor giant will set up a plant in Asiatic Indahpura for ink cartridges and handset housings. While news agencies have provided some details of this project, none have been confirmed by Hon Hai. On August 11, the Nanping town of Zhuhai was recognized by the Guangdong provincial authority as the Technological Innovation Specialized Town of printers and consumables. This recognition means Nanping town will receive more favorable policy support by government. Surely, this is a milestone for the achievement of the printer consumables industry in Zhuhai. And it may bring new development opportunities as well. We will see you in Zhuhai the 13th to 15th this October!

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All rights reserved. © 2011 by Recycling Times Media Corporation. The contents are not be to copied or republished without official written consent. The editorial content does not represent official positions of Recycling Times Media Corporation.

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What is cloud computing? Cloud computing, the latest computer buzzword, is very much overhyped and misunderstood. Let us explore this new terminology with Thomas Ashley.

Just a Minute with David Gibbons

Printers, printers everywhere, but …

Cloud activated printing, peripherals, supplies and resolution war

Money From Home

Innovation, GRIGA and Operation Pushback

In this article we’ll look at what’s different in new services from printing companies and predict how the growing prevalence of Cloud computing is opening up new opportunities.

Industry Updates

Major OEMs release Q2 financial reports

Four consumables companies among top 10 for patents ImageComm to construct eco-friendly tech park in Taizhou

The Q2 financial reports from HP, Canon, Epson, Samsung, Lexmark and Fuji Xerox are covered in this article for a review of their performances.

Largest color toner manufacturer in Central China starts construction

8 9

Large waste recycler gets more serious about reusing e-waste Jadi granted US patent for natural oil-based toner resin HP inkjet products barred under GEO denied entry into US US government clamps down on solvent used in inkjet manufacturing Future Graphics welcomes new sales director

10 Cabot to increase inkjet capacity in United States SymbioPrint promotes biotoner in North America

Apple wants us to have driver-free printing STMC certificated instructor in China to share knowledge

Product Release products from Static Control 12 New Delacamp releases bio-based shipping locks

13 Goat Labs introduce new toner products for HP printers Graphics releases color toners for HP CP6015 series 14 Future ImageComm releases color toner for Xerox printers 15

New toner for Brother TN2215/2225/420/450 from Pointrole First-to-market compatible color cartridges for HP laser printer

OEM News Kyocera Mita to construct new factory in Hai Phong,

16 Vietnam

Nine new printers from Canon Global Imaging Systems acquires Xerographic Solutions Epson launches five new SOHO printers

OEM News Zero-landfill achieved in China

17 Lexmark International downgraded by Goldman Sachs to ‘sell’

Canon offers ‘Printeaze’ for SMEs

Features

18 What is cloud computing? printing, peripherals, supplies and resolution wars 20 Cloud-activated 25 Major OEMs release Q2 financial reports Profiles To smile, do business by heart — an interview of Acco

32 Huang

Market Data

34 World peripherals market update 39 InfoTrends’ new report in BRIC and Western Europe 40 Lyra report brings positive news for print industry Tech Zone Remanufacturing the Brother HL 3040 series toner

42 cartridges TN-210 color toner cartridges

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Recycling Times Magazine

Just a Minute with David Gibbons

Printers, printers everywhere, but â&#x20AC;Ś Just how many companies are actually out there making and distributing desktop printers? We all know that Hewlett Packard is the largest, and has about 42% of the market. Which means that it just about makes and sells more printers than everyone else put together. Canon, Epson, Samsung and Brother have a combined share of about 45% of the worldwide market. That leaves Lexmark, Kodak, Sharp, Dell, Panasonic, Kyocera Mita, Konica Minolta, Ricoh and about 40 other OEMs fighting over the remaining 5% share. Inkjet printers enjoy about one third of the market, and laser/toner printers the other two thirds. In recent times there has been a surge in monochrome laser printers. But if you were a â&#x20AC;&#x153;betting manâ&#x20AC;?, where would you invest your dollars? In inkjet, or laser technologies? Which of these will eventually reign supreme? Or will

they continue to co-exist. We also know that there is NO money to be made in manufacturing and selling printers. The money is all in the consumables. Ink is still more expensive to the consumer than the finest century old wines. So maybe it no surprise that earlier this month, Fuji Xerox announced they were repositioning themselves as a document-service provider rather than being an OEM focusing on printer sales. They allegedly said they want to helping companies cut printing costs. They will no longer rely on printer sales to drive company revenues. Why? Has the market place become too saturated with OEMs selling office equipment? I wonder if we will see more OEMs making the same decision?

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David Gibbons is a director of Recycling Times. He has been a school principal, businessman, marketer, communicator, TV presenter/host and a remanufacturer. For many years he was the executive officer of the Australasian Cartridge Remanufacturers' Association (ACRA).

Recycling Times Magazine

Money From Home

Innovation, GRIGA and Operation Pushback As I indicated in last month’s column, applying innovative engineering is another solution that promises to build market share for toner cartridge remanufacturers. We’ve seen this in patent filings by Micro Solutions Enterprises ( Van Nuys, Calif.) and in ads promoting MSE’s Intelligent ReEngineering approach to cartridge remanufacturing. More recently, in an announcement by Union Technology International (UTec) at World Expo 2011, the parts and consumables supplier introduced Nano-Conductive Polymer coatings to replace used and worn polymer rollers. Using advanced nanotechnology, UTec’s engineering team developed a unique linear structure for the rollers. This novel composition replaces traditional carbon black filled conductive polymers. Nanotechnology offers more stable electrical resistance and rollers that are less affected by ambient atmospheric conditions. The results claimed by UTec are, good uniformity, minimal contamination, minimal background, low torque and extended lifespan.The new Nano-Conductive polymers are being used to fabricate supply rollers, developer rollers and charge rollers for use in HP, Brother and Samsung toner cartridges. They will be distributed globally by the company’s key partners in 120 different countries worldwide.In addition to this breakthrough in roller technology, UTec showcased a comprehensive range of remanufactured laser cartridges specially designed for MPS providers. The company’s “Bio-Eco” biotoners were also offered as an answer to the world’s rising environmental concern. These breakthrough products by MSE and UTec are cartridge upgrades that the OEMs are not offering to their copier and printer end-users. Whether you’re using superior components to replace worn or broken cartridge parts, these replacements still fall under the doctrine of permissable repair and therefore do not violate any OEM patent rights that might exist in the country where you are selling cartridges. Indeed, these rights are exhausted and no longer apply at the instant the cartridge is sold in the United States. For those not first sold in the USA, attempting to bring them into America as a remanned cartridge is a violation and could result in the importer being found liable for legal penalties.

This brings us to what is likely the most powerful weapon for increased revenue in the aftermarket arsenal: consumer education. Rechargers, acting individually, are certainly doing their best to make their customers aware of the benefits and merits of cartridge recycling and remanufacturing. Unfortunately, these efforts are being eclipsed by an overwhelming blitz of rhetoric and ink by the OEMs. End users are being told that aftermarket cartridges are not only poor in quality, but that they could damage copiers and printers. In some cases, they have been advised that their use of an aftermarket cartridge can not only damage their equipment, but could result in service contracts or equipment warranties being rendered null and void. None of this is true. How about calling this consumer education program, Operation Pushback? In the current vernacular, the term "pushback" is being used to describe a counter argument in a debate, or a positive response to a negative statement (or, vice-versa). I suggest that we apply the slogan "Operation Pushback" to the reman industry's response to OEM claims that our products are low in quality, damage printers, etc. To counter these disparaging remarks, GRIGA (the Global Remanufacturing Industry General Assembly) has now embarked upon a three-prong campaign to raise consumer awareness. It includes a video intended for mass distribution to the media, to toner and ink jet cartridge remanufacturers, to office superstore retailers, to corporate purchasing agents, and to other decision makers. The video will be available on October 12, 2011 at GRIGA 2011 in Zhuhai, China. The GRIGA campaign also includes promotional articles informing consumers that cartridge recharging is a mature industry built by reliable companies around the world. It will ensure end-users that the industry is wellorganized and well-managed, with existing benchmarks for image quality, page yield, cartridge performance and other basic standards. Finally, the GRIGA campaign will re-iterate the Green Initiative—the concept of sustainability and the necessity of protecting earth’s vital resources. This three-fold effort is designed to win public opinion in favor of cartridge collection and re-use and to help increase our industries’ market share.

Arthur S. Diamond Art Diamond is a 56-year veteran of the imaging industry. He is President of Diamond Research Corporation, a high technology research and consulting firm he formed in 1968 after research assignments with Eastman Kodak, Times Facsimile, Addressograph-Multigraph and Telautograph Corporation. DRC serves clients through product formulation and development, private studies, strategic market planning, and expert witness testimony. Diamond is known internationally as an expert on dry toners and imaging media with 15 issued U.S. patents.

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Recycling Times Magazine

Industry Updates

Four consumables companies among top 10 for patents

our imaging consumables companies are among the top ten for lodging new patents in Zhuhai, China. Print-rite Unicorn Image Products, Seine Technology, Ninestar and Print-rite Technology in Zhuhai are the top players that successfully lodged the highest numbers of patent applications during the first half of 2011.

According to official statistics from the local Intellectual Property Office, the new patent applications from enterprises in Zhuhai in the first half of the year reached 2,342, up 52.67% on the same time last year. There were 599 new invention patent applications, accounting for 26% of the total number. Another 1,054 applications were utility

model patents, accounting for 45% of the new applications. The remainder were design patents. In the first half of 2011, Zhuhai based enterprises were granted 1,761 patents, a growth of 38.12%. The total number of invention patents granted was 161, up 114.67% on last year. The figures also show that the momentum of new patent

applications was mainly generated by the local top enterprises such as Gree Electronic Appliance and the printer consumables companies, who are still the major players in terms of new patent applications in Zhuhai. Government and industry onlookers say the innovativeness reflects positively on the technological advantages found in Zhuhai.

ImageComm to construct eco-friendly tech park in Taizhou

Chinese imaging company based in Zhuhai says it will invest over RMB 200 million to construct an eco-friendly technology park. The Zhuhai Image Communication Co., Ltd has signed an investment project agreement with the municipal government of Taizhou, Jiangsu Province, to construct the ecofriendly technology park in the city. The project will be completed over a number of stages and

ImageComm will start the first phase of the construction. The new park will cover about 10,000 square meters, aiming to be the comprehensive development center for the three major ImageComm businesses: imaging materials, ecofriendly products, and data and information processing. An ImageComm spokesperson said, ‘This new project has been on the drawing board for years and we have finally decided to build the new Tech Park in

Taizhou. We are satisfied that Taizhou – as one of the key national hi-tech development zones – has good supportive facilities and infrastructure, a unique geographical location and convenient transportation. ImageComm has always believed that imaging and communication are necessities of daily life. So we have high expectations of our related businesses. Our investment in this new project is a contribution to the future development and innovation of

this industry’. ImagComm has been engaged in the R&D, production and sales of imaging materials for automatic office devices since 1993 and in recent years has extended its business to eco-friendly products as well as data and information processing.

Largest color toner manufacturer in Central China starts construction

cornerstone laying ceremony for the Point-benny Technology ( Wuhan) Co., Ltd, has been held in Wuhan, Hubei province. This will become the

largest color toner production base in Central China. The new company is a SinoJapanese joint venture co-invested by the Wuhan government, Wuhan Pointrole Information Technology Co., Ltd and the Japanese Marubeni Chemix Corporation, one of the top 500 companies in the world. Located in the Huangjinkou industrial park in Hanyang District, the first phase of the project has

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benefited from a total investment of RMB 1.9 billion. It covers 25,800 square meters and will produce various color toners for printers, copiers, and MFPs. Wang lin’an, the president of Point-benny Technology ( Wuhan) Co., Ltd said, ‘Together with Marubeni Chemix Corporation, we are determined to build the largest color toner base in Central China. It is a cornerstone for China’s

color toner history, since the new production base enables us to produce our own color toners and reduces our dependency for imported ones. The new production base will be put into operation as soon as possible, without compromising quality’. The joint venture is also a key project supported by both the Wuhan municipal and the Hanyang District government.

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Industry Updates

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Industry Updates

Large waste recycler gets more serious about reusing e-waste

M Recycle America, a subsidiary of Waste Management Inc. is the largest waste services and residential recycling company in North America. It has acquired Access Computer Products, Inc. which collects used cell phones, ink and toner cartridges. They specialize in consumer electronics reverse logistics, remarketing and recycling. Mordell, a re-commerce partner responsible for refurbishing and selling used computer equipment obtained through Access and other third party suppliers, was also acquired by WM Recycle America. The acquisition of the L oveland, CO -based Access Computer Products will further strengthen Waste Management's position as a leader in the

recycling of e-waste, which is one of the fastest growing commodities in the waste stream. Consumers and remanufacturers will be able to gain access to Waste Management's recycling and reuse program. ‘Waste Management is committed to providing solutions to our customers for managing their electronic waste’, said Pat DeRueda, president of WM Recycle America. ‘This acquisition will expand Waste Management's presence in the growing electronics recycling and recommerce market and provide an additional high value service to our customers.’ Electronics recycling is a fastgrowing industry that creates high-paying, green jobs. Twentysix US states have mandated e-waste recycling programs

and consumers are increasingly trading up to newer models of mobile phones, computers and other consumer electronics. According to the 2011 Electronics Recycling Industry Survey, the US electronics recycling industr y continues to show tremendous growth and strong domestic capacity. The $5-billiona-year industry, which employs more than 30,000 full-time workers in the U.S., collected and processed over 3.5 million tons of used and end-of-life electronics equipment in 2010, up from 1.8 million tons in 2009. This acquisition complements WM's other e-cycling operations and will contribute to Waste Management's sustainability goal of tripling the amount of

material it recycles to 20 million tons by 2020. About Waste Management Waste Management, Inc., based in Houston, Texas, is the leading provider of comprehensive waste management services in North America. Through its subsidiaries, the company provides collection, transfer, recycling and resource recovery, and disposal services. It is also the largest residential recycler and a leading developer, operator and owner of waste-toenergy and landfill gas-to-energy facilities in the United States.

Jadi granted US patent for natural oil-based toner resin

adi Imaging Technologies Sdn. Bhd. ( Jadi) has obtained a new patent granted by the US Patent and Trademark Office. Patent No. 7,968,647 B2 discloses technology for making environmentally friendly toner resin derived from bio-based sources including various vegetable oils such as palm oil, coconut oil,

linseed oil, castor oil, soy oil and rapeseed oil. The technology, developed by Jadi’s R&D team in collaboration with the University of Malaya, would drive positive changes in the toner and imaging industry by promoting greater use of green materials in toner and helping to reduce the industry’s dependence on non-renewable petrochemicalbased toner resins. Conventional toners are manufactured using a melt mixing process. This involves compounding the

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ingredients such as resins, pigments, magnetic iron oxides, waxes and charge control agents by melting and blending the ingredients to for m a paste. The mixture is then cooled and pulverized into fine powder within a controlled particle size range, either by a mechanical or jet mill. The new technology would enable Jadi to manufacture environmentally friendly hybrid toner resins that incorporate significant levels of palm oil-based derivative. Besides reducing the dependence on non-renewable

petrochemicals, the use of palm oil in toner production would help alleviate greenhouse gas emissions through lower net CO2 emissions from incinerated waste toner. Jadi is now exploring various options for the commercial production of its proprietar y palm oil-based toner resin and plans to offer its palm oil-based toner product – Palmotone Melt Pulverized Toner (MPT) – by the second half of next year. In addition, a similar patent on palm oil-based Chemically Prepared Toner (CPT) – Palmotone CPT – is currently under application.

Recycling Times Magazine

Industry Updates

HP inkjet products barred under GEO denied entry into US

he International Trade Commission (ITC) in the US issued a seizure and forfeiture order for some inkjet products compatible with HP printers, which are barred under a General Exclusion Order (GEO). The inkjet cartridges and components concerned are imported by a company called E Top Limited Liability Company (E Top LLC).

HP was granted the GEO in an investigation (337-TA-691) earlier this year, and the inkjet cartridges and components covered are HP 02 series ink tanks, as well as HP 10, 11, 12, 13, 28, and 88 ink tanks. The USITC seizure and forfeiture order was issued on August 2, declaring that any inkjet supplies and components imported by E Top LLC or its affiliates in violation of the GEO

are to be seized and forfeited. The order was issued after the US Bureau of Customs and Border Protection (CBP) discovered and denied entry of E Top LLC’s violating articles. The CBP has warned the company that further attempts to import these articles into US will result in seizure and forfeiture of affected cartridges or components. According to Actionable-

Intelligent, E Top LLC is actually a newly founded company established in January this year, about the time when HP was granted the GEO on its HP 02 ink tanks. And this seizure and forfeiture order is the second related to this GEO this year, the first was issued in March when Nano Ink Spot attempted to import violating articles. Source: Actionable-Intelligent

US government clamps down on solvent used in inkjet manufacturing

chemical used as a solvent in manufacturing printing ink and inkjet cartridges may be outlawed by the US Environmental Protection Agency (EPA). The EPA made the announcement recently that at least three glymes, namely monoglyme, diglyme, and ethylglyme, out of a 14 glymes available in US pose ‘a high concern to workers, consumers and children’. These glymes are deemed to have reproductive or developmental effects. Glymes belong to a broad family of chemicals called ‘glycol ethers’ typically used as solvents in manufacturing. Among the three most hazardous, Diglyme, can cause decreased sperm production, poor growth of fetuses, reduction in red blood cell count and wasting away of bone marrow, the spleen and the thymus gland. It is quite commonly used as a solvent in

printing, inkjet inks and inkjet cartridges. The EPA has proposed a new rule for glymes as one of its few weapons authorized by the federal Toxic Substances Control Act. If adopted, it would let the agency restrict new uses of 14 glymes in the US marketplace. Richard Denison, a biochemist and senior scientist at the Environmental Defense Fund, a national environmental group, called glymes ‘a quite nasty group of chemicals.’ ‘They are potent reproductive and developmental toxicants, and they’re also used in a lot of consumer products. The range of uses includes products that the ordinary customer would use and be exposed to’ Denison said. In the late 1980s and early 1990s, scientists from the University of California-Davis led a study of 6,000 workers in 14 plants. They linked mixtures of ethylene-based glycol ethers, including diglyme, to a

pattern of increased miscarriages among women semiconductor manufacturing workers. Since then, glymes have come under US government scrutiny as particularly hazardous to workers, including those that manufacture semiconductors, printing ink, automotive care products, paints and pharmaceuticals. ‘I’m glad to see attention to this because the agents are no less toxic than they were ten years ago,’ said Dr Marc B. Schenker, a UC Davis professor of medicine and chairman of the Department of Public Health Sciences, who led the study. Schenker said the semiconductor industry made changes in manufacturing after his study and another study at IBM with similar findings. Other industries use these solvents more heavily than semiconductor

manufacturers do, but they haven’t put in place the same controls, he said. In the European Union, products containing monoglyme or diglyme already are regulated. Their labels must say ‘may impair fertility’ or ‘may cause harm to the unborn child’. If the US rule is adopted, the EPA can require companies to conduct tests to rule out unreasonable risk before it will approve new uses of the compounds. The agency also reviews green chemistry substitutes and already has observed a trend toward replacing ethylene-based glycol ethers with less toxic propylene-based glycol ethers, the agency says.

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Recycling Times Magazine

Industry Updates

Future Graphics welcomes new sales director

uture Graphics is pleased to announce the addition of Benny Chu to its Zhuhai, China sales operations. With the title of sales director, Mr Chu will be looking after the expanding South East Asia region.

Mr. Chu has over 20 years’ experience in the imaging industry, including over 15 years as a sales manager and consultant for UTEC/Print-Rite. ‘Benny ’s experience and knowledge of the region will be a great asset as we offer

our superior products and comprehensive system solutions to more customers throughout South East Asia’, said Mr. Dick Yu, FG representative in China. Mr. Chu may be reached at +8613928020788 or by email at bennyc@fgimaging.com.cn.

Cabot to increase inkjet capacity in United States

abot, in the USA, says it will invest USD10 million on increasing its inkjet production capacity. Company officials say Cabot Corporation will extend its inkjet facility in Haverhill, Mass., before the end of 2012. The expansion, which started earlier this year, will enable Cabot to increase the capacity of its CAB-O-JET color pigment dispersion and polymer product lines by 100 per cent and will further strengthen Cabot's leadership position in aqueous pigment dispersions.

Cabot wants to be able to meet the increasing demand for ink following the rise in inkjet printer sales, the demand for ‘print on demand’ print runs by publishing houses, the increase in transactional printing of bank statements and bills and the more extensive use of color from the small office and home markets. ‘This expansion will support the rapid growth in inkjet that we see in both the office and commercial printing segments’, said Fred von Gottberg, Cabot vice president, New Business Segment. ‘With an increased demand for color

printing, personalized content and short runs, we believe that inkjet printing has become the best, most cost-effective solution.’ The CAB-O-JET line of products is manufactured using a proprietary stabilization technique and surface treatment that delivers superior print performance, durability and flexibility for the inkjet ink developer. The launch of the CAB -OJET 400 series of inkjet colorants in 2007 marked the debut of Cabot's patented calcium-binding technology, a breakthrough

technology that results in sharper, brighter prints on standard papers at high speed. ‘We are growing our inkjet business by consistently delivering quality, and creating sophisticated technology solutions that meet our customers' needs and enable them to differentiate themselves in the market’, said von Gottberg. ‘We've demonstrated that CAB-OJET is a winning product platform and our expansion of the Haverhill facility will support our customers' growth in both current and emerging applications.’

SymbioPrint promotes biotoner in North America

ymbioPrint, a German distributor of biotoner cartridges and printing supplies, has started to promote its soy-based toner products in the North American market. SymbioPrint is a licensee of SoyPrint, developed by Print Recovery Concepts of Lewiston, Maine. SoyPrint biotoner is made from soybean oil that is a byproduct of animal feedstock, and

therefore much more sustainable than traditional petroleum-based toners. SymbioPrint claims that soy-based printing is used in approximately 25 per cent of all commercial printing processes already. Dolin Pereira, CEO of SymbioPrint Americas, says the SoyPrintbased supplies address two primary challenges posed by traditional toner cartridges. First, SoyPrint-

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based supplies use less petroleumbased materials and reduce dependency on petroleum, which is the goal of all green products. Second, their cartridges can help reduce the release of certain petroleum-based chemicals, such as benzene (a known carcinogen), styrene and toluene, during the printing process. The latter benefit, in particular, has been of interest to some of SymbioPrint Americas’

initial corporate customers in the United States, especially healthcare organizations that are heavily reliant on printing processes for their daily workflow and processes. SymbioPrint currently offers soy-based toner cartridges for laser printers from Canon and Hewlett-Packard and the list will be extended to include printers made by Dell, Lexmark and Samsung later in 2011.

Recycling Times Magazine

Industry Updates

Apple wants us to have driverfree printing

pple wants to kill off printer drivers once and for all and has filed two new patents featuring the driver-free printing methods. The two new patent applications will change the need for printer drivers which link a computer to a printer. Using new discovery protocols, or specific cloud services, a person will be able to send a document to any compatible printer in range. The two patents each describe a way for a Mac to get the necessary driver information from the printer itself or from the cloud, without the need to install any software on the computer itself. Should these patent applications

be granted, printing in the future could be done through: 1. use of traditional software drivers 2. a cloud service 3. a driverless, universal access method that works on any printing device. Apple is not the only company with a vision for driver-free printing. Google has also taken steps to eliminate the requirement for printer drivers with its web services. Cloud printing can be completed in the Chrome browser and in Google Docs. And manufacturers like HP are EFI are also starting to add similar features to their hardware.

STMC certificated instructor in China to share knowledge

ccording to Retech, it gained the Standardized Test Methods Committee (STMC) certificate in 2009 and it remains the only professional toner cartridge manufacturer in China with a resident STMC instructor. And now, this STMC instructor, Jerry Ding, is willing to share his knowledge with people in the same business by providing lectures or other trainings. The International Imaging Technology Council authorized Jerry Ding as an STMC instructor granted in July 2009. He has over 15 years of experience in the

industry and has been constantly providing STMC training courses to all the technicians and engineers at Retech to improve their understanding and execution of STMC. He also oversees the whole processes of new model launching to ensure high quality and low defect rates in products. The feedback from Jerryâ&#x20AC;&#x2122;s trainees is all positive since Jerry has easy-going personality who is good at using vivid examples to deliver instructions. Invitations are welcome. Contact message@retech.com. hk.

September 2011 | www.recyclingtimes.com.cn

Recycling Times Magazine

Product Release

New products from Static Control

arious new products are now available from Static Control Components (S CC) aimed at enhancing yield capacities, replace the OEM’s components and lower shipment costs. Conversion kits enhance the yielding of HP’s cartridges

SCC has released a new gear set and conversion kit products that allow remanufacturers to turn low yield cartridges into high yield cartridges and high yield cartridges into extra high or jumbo yield cartridges. These conversion products are available for cartridges used in HP 2430/3005 and P3015 printer families. The products include an empty hopper, a gear set and a drill and jig kit. Product codes: H3005EMPTY, H3015GEARSET, and HPP3015CONVKIT. With these simple tools, 22 cartridges used in a dozen HP and Canon printers can be converted into higher yield cartridges that are more profitable to remanufacture. New Odyssey doctor bar and doctor blade

SCC has also released two new component products, the new Odyssey doctor bar (OSLT650DBAR) for use in remanufacturing the Lexmark T650, E460/360/260 as well as related Dell, IBM, Lenovo and Okidata toner cartridges, and the new Odyssey doctor blade (HP38DBLADE-OS-5) for use in remanufacturing HP 3800/3600/3000 and CP3505 toner cartridges. The new Odyssey doctor bar prevents streaking and other print defects that can occur when reusing an OEM doctor bar. SCC recommends replacing the doctor bar after each remanufacturing cycle to ensure quality print performance throughout the cartridge life cycle. Chips, electrically matched toner, OPC drums, wiper blades, and other cartridge parts are available from SCC for remanufacturing the Lexmark T650, E460/360/260 family of toner cartridges. As for the Odyssey doctor blade for the HP 3800, it is designed and manufactured in-house by SCC, which ensures that the component is electrically matched with other SCC toner and components used to remanufacture these

cartridges for optimum print quality and performance. SCC recommends replacing the doctor blade after each remanufacturing cycle to avoid print defects associated with damaged, used doctor blades. SCC’s sealing foam (HP38DBSFM) is recommended for use with the new HP 3800 doctor blade for a secure seal, and the gapping tool (HP38DBSPACER) is recommended for correct doctor blade gapping. Smaller toner bottles of 10oz

SCC has introduced smaller 10oz toner bottles that lower costs while reducing waste and pollution. Remanufacturers can lower freight cost and reduce shipments by receiving more bottles in a single shipment. The smaller bottle size requires less storage space, too. The new, smaller bottles will be used for more than 190 different toner products from SCC for fill weights of 100 grams or less. For fill weights between 100 grams and 125 grams, toner might be shipped in 10oz bottles depending on trial fill tests. Customers will receive toner in the new, 10oz bottles in mixed shipments over the next several months.

Delacamp releases bio-based shipping locks

elacamp has developed and is first to market with a truly green aftermarket invention, the DCBioSelect product series, bio-based plastic parts for use with remanufactured cartridges. The first products available from the DCBioSelect product range are bio-based shipping locks for use with remanufactured HP CP 1518/1525 and CP2025 series cartridges. These have been certified by the DIN. Shipping locks and transport protection parts like developer roller covers are designed by the OEM as throwaway articles. Unfortunately, these transportation protection parts are rarely reused because of a lack of collection possibilities. This makes them a burden to the environment.

www.recyclingtimes.com.cn | September 2011

With these shipping locks the aftermarket has a truly green alternative. Up to 98% of the product is made from bio-based material which is derived from wooden fibers. This makes them CO2 neutral. DCBioSelect bio-based foil bags and inflatable foil bags are currently in development. About Delacamp Delacamp, with its main office located in Hamburg, Germany is a leading supplier of components and consumables to the remanufacturing industry as well as

consumables, components and spare parts for copier machines worldwide. In order to provide superior service to its customers, Delacamp holds a large selection and inventory of matched quality components at competitive prices for immediate delivery. Delacamp is the exclusive distributor of MK Imaging, DC SELECT, CPT and Kaleidochrome branded products in EMEA. Delacamp: Serving customers since 1879. For more Information on Delacamp visit their website: www.delacamp.com.

Recycling Times Magazine

Product Release

Goat Labs introduce new toner products for HP printers

oat Labs have announced a new universal chemical toner for use in the HP CP1025, CP1215, CP1525 and CP2025 color laser printers series, as well as a new toner to replace the old toner for the HP 4600/4650 printer series. Universal chemical toner

Goat Labs’ quality, research and development team selected this toner due to its chemical manufacturing process for the aftermarket and performed several tests, which not only passed, but resulted in outstanding performance results. Besides excellent fusing capabilities the technicians measured an average back grounding of 0.05 and an efficiency of transfer of 90%. The declared yield is equal to the stated OEM value and in some cases exceeds it. Yield was measured in accordance with ISO/IEC 19798. • The black replacement cartridge CE310A (#126A) yields 1,200 pages and the color cartridges CE311A (cyan), CE313A (magenta) and CE312A (yellow) yield 1,000 pages at 5% coverage. Compatible printers for this cartridge are the HP LaserJet Pro CP1025 models and the HP LaserJet Pro 100 Color MFP M175 models. • The black replacement cartridge CB540A (#125A) yields 2,200 pages and the color cartridges CB541A (cyan), CB543A (magenta) and CB542A (yellow) yield 1,400 pages at 5% coverage. Compatible printers for this cartridge are the HP Color LaserJet CP1215 and CP1515 models, as well as the CM1312 MFP models. • The black replacement cartridge CE320A (#128A) yields 2,000 pages and the color cartridges CE321A (cyan), CE323A (magenta) and CE322A (yellow) yield 2,800 pages at 5% coverage. Compatible printers for this cartridge are the HP LaserJet Pro CP1525 models and HP LaserJet Pro CM1415 MFP models. • The black replacement cartridge CC530A yields 3,500 pages and the color cartridges CC531A (cyan), CE323A (magenta) and CE322A (yellow) yield 1,300 pages at 5% coverage. Compatible printers for this cartridge are the HP

Code

ProChem Toner Description

Unit/pack

230076

Black (K), HP CP1025/MFP M175, 40g/bottle

230077

Cyan (C), HP CP1025/MFP M175, 29g/bottle

230078

Magenta (M), HP CP1025/MFP M175, 29g/bottle

230079

Yellow (Y), HP CP1025/MFP M175, 29g/bottle

230080

K, HP CP2025/CM2320, 100g/bottle

230081

C, HP CP2025/CM2320, 75g/bottle

230082

M, HP CP2025/CM2320, 75g/bottle

230083

Y, HP CP2025/CM2320, 75g/bottle

230088

K, HP CP1215/1515/1518/1525/CM1415, 49g/bottle

230089

C, HP CP1215/1515/1518/1525/CM1415, 40g/bottle

230090

M, CP1215/1515/1518/1525/CM1415, 40g/bottle

230091

Y, HP CP1215/1515/1518/1525/CM1415, 40g/bottle

Color LaserJet CM2320 models and the CP2025 models. These easy to remanufacture cartridges will be highly profitable as the small and low-cost printers are sold worldwide and the cartridges will need to be replaced very often. The Goat Labs Universal ProChem toner will be available in bottles with the applicable gram load. New toner for HP Color LaserJet 4600/4650 Printer Series

Goat Labs have also announced the replacement of their HP 4600/4650 toner with a new toner. ‘These color toners have been in development for quite a while, so we are pleased to announce that they finally can be

introduced’, said Gianluca Traficante, Product Manager at Goat Labs. ‘Our technicians spent a considerable amount of time to test thoroughly the toners to ensure consistent results and reliable performance. As from now we can offer HP 4600/4650 color toners again at an attractive price.’ Even though this engine has been discontinued by HP, there is still a large installed base of small to medium workgroups. The black replacement cartridge C9720A yields 9,000 pages and the color cartridges C9721A (cyan), C9723A (magenta) and C9722A (yellow) yield 8,000 pages at 5% coverage. Goat Labs offers the following components for this engine:

Code

Description

Unit/pack

100120

OPC Drum, OptiPrint, HP4600

230072

Toner, ProColor, black, HP4600, 200g/bottle

230073

Toner, ProColor, cyan, HP4600, 200g/bottle

230074

Toner, ProColor, magenta, HP4600, 200g/bottle

230075

Toner, ProColor, yellow, HP4600, 200g/bottle

300018

Wiper Blade, HP4600

310018

Doctor Blade, HP4600, Chemical toner

400309

Chip, BK, HP4600/4650/5550, Canon EP-85/86

400310

Chip, C, HP4600/4650/5500/5550, Canon EP-85/86

400311

Chip, M, HP4600/4650/5500/5550, Canon EP-85/86

400312

Chip, Y, HP4600/4650/5500/5550, Canon EP-85/86

600010

Shipping Lock, HP4600

600070

Seal, HP4600, Splithopper

September 2011 | www.recyclingtimes.com.cn

Recycling Times Magazine

Product Release

Future Graphics releases color toners for HP CP6015 series

uture Graphics (FG) has launched new color toners and components for the HP CP6015 cartridge. FG applies a comprehensive system of parts and toners in the replacement cartridge. Besides

a high BID (black image density) and excellent fusing capabilities, the new toners also provide high yield. Presently, the toner is only available in bulk bags. FG offers the components listed in Figure 1.

FG advises that test results (see Figure 2) are only indicative and actual final results may vary depending on many variables, including the condition of the components, assembly, temperature, and humidity.

FG code

Description

Unit/pack

OEM model

HP6015KHEMC10KG

Compatible toners C10kg

HP CP6015 CM6030 CM6040

HP6015KHEMM10KG

Compatible tonersM 10kg

HP CP6015 CM6030 CM6040

HP6015KHEMY10KG

Compatible toners Y 10kg

HP CP6015 CM6030 CM6040

HP6015KHEMK10KG

Compatible toners B 10kg

HP CP6015 CM6030 CM6040

HP6015CHIPTC

Compatible chips C

HP CP6015

HP6015CHPTM

Compatible chips M

HP CP6015

HP6015CHIPTY

Compatible chips Y

HP CP6015

HP6015CHIPTK

Compatible chips B (only HP 6015)

HP CP6015

HP6015ESEALP

Compatible seals

HP CP6015 CM6030 CM6040

▲ Figure 1

Data

Filling amount

Toner

OPC

Wiper blade

BID(average)

Yields(average)

325

HP6015KHEMC10kg

OEM

1.27

24,246

OEM

325

OEM

1.19

23,110

340

HP6015KHEMY10kg

OEM

0.93

23,539

OEM

310

OEM

0.84

26,350

330

HP6015KHEMM10kg

OEM

1.18

24,704

OEM

330

OEM

1.16

25,498

270

HP6015KHEMK10kg

OEM

1.33

17,684

OEM

325

OEM

1.14

17,153

▲ Figure 2

ImageComm releases color toner for Xerox printers

company based in Zhuhai, southern China, is ready to go to market with a new color

toner. Zhuhai Image Communication – also known as ImageComm – has announced that its new color toner, which is imported from Japan, can be used in Xerox CP105B/CP205/CM205B printers. This new product features the ability to print at an excellent resolution, a low fusing point, and good, lasting color rendition, which are ideal for the Xerox printer application

www.recyclingtimes.com.cn | September 2011

which produces sample color documents. ImageComm has developed corresponding cartridge chips as well. Established in 1993, Zhuhai Image Communication Co., Ltd engages in the research and development, production and sales of imaging materials for automatic office devices. ImageComm is committed to providing cost-effective products and technical support for its clients at home and abroad. Tel: 86-756-6200899 Website: www.imagecomm.net

Recycling Times Magazine

Product Release

New toner for Brother TN2215/2225/420/450 from Pointrole

ew compatible toners for Brother printers have been launched in Wuhan, China. Pointrole Information Technology Co Ltd has produced the toners for the Brother HL-2240/2240D, DCP-7060D and MFC 7470D/7360/7860DN series of printers. The Brother HL-2240D printer, released this March, is a monochrome laser printer that

creates 24ppm and has an automatic duplex capability. It is a popular choice among its counterparts on the market. Pointroleâ&#x20AC;&#x2122;s new compatible toners, the Brother LT-316, features a black image density of 1.45, a low toner consumption of 0.02g per page, a high transfer rate of over 97% and a printing yield of 2,600 pages with stable and high quality performance.

Wuhan Pointrole Information Technology Co., Ltd. is a key high-tech enterprise supported by the Chinese Ministr y of Science and Technology, PRC. Pointrole engages in the R&D, manufacturing and sales of toners, and the company also is a member of CCIA and CSBTS/ TC147. Tel: 86-27-84452910; Email:market@ pointrole.com; Website: www.pointrole.com.

First-to-market compatible color cartridges for HP laser printer

LG (International Laser Group) says it is the first to release the compatible HP color series CE740A, 741A, 742A, and 743A cartridges for use in CP5225, CP5225dn LaserJet printers. This high-demand compatible HP color series offers a 7,300 page yield for black and 7,000 page yield for color : CE741 (cyan),

CE742 (yellow) and CE743 (magenta), claiming to match the OEM in print yield. ILG is also satisfied with the high quality print results from its toners, which feature solid dark print details and sharp color output. These cartridges are manufactured in the USA by ILG and produced under stringent manufacturing guidelines.

ILG color products also feature the Smart Color System, a system designed to enhance the color print quality and eliminate toner leakage or build-up, resulting in clean streak-proof prints that match the OEM in consistency and performance. More information: www.ilglaser.com or call +1(800) 937-2880, ext.3207.

September 2011 | www.recyclingtimes.com.cn

Recycling Times Magazine

OEM News

Kyocera Mita to construct new factory in Hai Phong, Vietnam

yocera Mita has been granted an investment certificate by the Hai Phong city People’s Committee, Vietnam, to build a new printer factory in the city’s Vietnam-Singapore Industrial Park

( VSIP). The first foreign enterprise to invest in the VSIP, Kyocera Mita will invest a total amount of USD 200 million for the new printer and MFP factory, which will cover an area about 20 hectares . The construction is scheduled in October this year and will take about a year before the factory can be put into operation. It is expected that the new factory will have an annual capacity of 150 thousand units by October 2012, which will increase to 450,000 units by year 2016, and can generate about USD 750 million of total export volume annually. The new factory will also create 5,000 jobs locally.

Nine new printers from Canon

anon has announced nine new printers designed to increase productivity in the office and at home. On the laser printing side, Canon has three new imageCLASS color laser printers – the MF8380Cdw and MF8080Cw and the ImageClass LBP7660Cdn all feature 802.11 b/g/n wireless connectivity by way of Wi-Fi Protected Setup ( WPS). Four monochrome laser MFPs are imageCLASS MF5960dn/5950dw, MF4570dw and MF3010, these new products collectively help meet the needs of consumers, SOHO users and workgroups. The MF3010 will go on sale in the beginning of August for USD149, the lowest price point for a Canon laser MFP to date. Moving on to the consumer side, Canon also announced two new Pixma photo printers, the Pixma MG5320 Wireless Photo All-in-One and the Pixma iP4920 photo inkjet. The MG5320 will sell for USD150 when it goes on sale this fall. The new Pixma iP4920 does that with five individual ink tanks for ChromaLife 100+ cartridges. An autoduplexer in the back can flip a sheet of paper for double-sided printing.

www.recyclingtimes.com.cn | September 2011

Epson launches five new SOHO printers

pson has released five new printers designed for home and small business users. According to the company, these five new LED printers consist of three monochrome models (AcuLaser M1400, MX14 and MX14NF) and two color printers (AcuLaser C1700 and CX17NF). They will be replacing the company's entry-level laser printer lineup. Epson claims that its new line of LED printers will be capable of a maximum printing speed of 24 ppm for the monochrome models, while its color printers will feature a slightly lower speed of 12 ppm. Features common among all five printers include high monthly cycles of up to 20,000 pages a month and built-in memory capacities of up to 128MB for what the company claims amounts to ‘better workload management’. In addition, all five printers will sport lower energy consumption because of their use of LEDs over conventional laser technology. Epson says the monochrome models will feature a maximum print resolution of up to 1200 x 1200 dpi, while the color models will have higher print resolutions topping out at 1200 x 2400 dpi.

Global Imaging Systems acquires Xerographic Solutions

lobal Imaging Systems, a Xerox Company (NYSE: XRX), has acquired Xerographic Solutions, Inc., a Rochester, N.Y.-based Xerox sales agent/dealer. Xerographic Solutions provides managed print and network services. Xerographic Solutions was established in 1991 by former Xerox sales manager Mark Perlo. It serves customers in Rochester, Syracuse, Buffalo, Batavia, Olean and Jamestown in N.Y., as well as in Erie and Bradford in PA. Xerographic Solutions will become part of Eastern Copy Products, a Global Imaging Systems company, headquartered in Syracuse, N.Y. Perlo will remain with the company as a general manager and senior vice president. The acquisition furthers Global Imaging’s strategy of creating a nationwide network of locally-based providers focused on improving document management and office efficiency for small and mid-size businesses. Earlier this month, Global Imaging Systems acquired Miller Technology Solutions, Inc., of Chesapeake, VA. and previously announced acquisitions in Iowa, Illinois and Florida. ‘This acquisition combines Xerographic Solutions’ strengths in managed print services, with Eastern Copy Products’ leadership in innovative office solutions’, said Tom Salierno, Jr., executive vice president of corporate operations for Global Imaging Systems.

Recycling Times Magazine

OEM News

Fuji Xerox achieved zero-landfill in China

uji Xerox Eco-Manufacturing (Suzhou) Co., Ltd., the center of Fuji Xerox's Resource Recycling System in China, has accomplished their zero landfill goal by recycling 99.8 percent of used products and consumables they collected in the 2010-11 financial year. The recycling center, established in January 2008, disassembles used Fuji Xerox products such as copiers, printers and cartridges that Fuji Xerox (China) Ltd, Fuji Xerox's sales company in China, collects from all over China (excluding Hong Kong, Macao and Taiwan), and sorts them

into 70 categories including steel, aluminum, lenses, glass and copper for recycling. Up until March 2011, the company generated 1,500 tons of recycled resources. Further, the center has been actively reusing used parts, and was certified as one of 35 pilot remanufacturing enterprises of electric products by the Ministry of Industry and Information Technology (MIIT) of the PRC. Fuji Xerox was the first company in the industry to introduce products containing recycled parts to the Japanese market in 1995, launching a full-fledged Integrated Recycling

System. In August 2000, the company became the first in Japan to achieve Zero Landfill from collected used products. Fuji Xerox continues to implement its 3R (Reduce, Reuse, Recycle) initiatives to achieve the goals of Zero Landfill, No Pollution and Zero Illegal Disposal, perceiving them as its responsibility as a manufacturer. It is committed to further reinforcing the Integrated Recycling System, which is an advanced model for achieving business growth and environmental conservation at the same time.

Lexmark International downgraded by Goldman Sachs to ‘sell’

quities research analysts at Goldman Sachs (NYSE: GS) have downgraded shares of Lexmark International, Inc. (NYSE: LXK) from a ‘neutral’ rating to a ‘sell’ rating in a research note to investors. The analysts currently have a USD25.00 price target on the stock. Separately, analysts at Bank of America Merrill Lynch reiterated an ‘underperform’ rating on shares of Lexmark International in a research note to investors on May 12. They now have a USD34.00 price target on the stock. On the same day, analysts at BMC Equities Research reiterated a ‘hold’ rating on shares

of Lexmark International in a research note to investors. Shares of Lexmark International, Inc. traded down 2.14% during mid-day trading on 16th, hitting USD31.10. Lexmark has a 52 week low of USD26.63 and a 52 week high of USD48.07. The stock’s 50-day moving average is USD30.5 and its 200day moving average is USD33.11. The company has a market cap of USD2.465 billion and a priceto-earnings ratio of 7.37. Lexmark International, Inc. last announced its quarterly results on July 26. The company

reported USD1.36 earnings per share (EPS) for the previous quarter, beating the Thomson Reuters consensus estimate of USD1.03 EPS by USD0.33. The company’s quarterly revenue was up 1.2% on a year-over-year basis. On average, analysts predict that Lexmark will post a USD1.19 EPS next quarter.

Canon offers ‘Printeaze’ for SMEs

anon India has introduced a software solution – ‘Printeaze’ – which will allow SMBs and enterprises to analyze all the print and copying processes within their organization. Dr. Alok Bharadwaj, Senior VP Canon India said, ‘We have been addressing key concerns of CIOs and CTOs of large organizations for quite some time by building intelligence into our MFDs for years. Now is the time for SMEs,

workgroups and small departments to harness the simple, powerful solution that will enable them to balance the full impact of color printing in a highly cost effective way … In order to expand the reach, we will be selling it through our enterprise sales network as well as channel partners. It will be a strong value proposition to the channel partners as this will make them climb up the value chain and move them from just box pushers to a solution selling model’.

The SMB segment in India shows great promise and scope for growth. As businesses grow, so does their need for infrastructure and peripherals to set up a smooth running office. Though the demand for printing and copying devices is increasing rapidly, the downside is the increase in IT spending for these companies. According to Gartner, enterprises are slated to spend almost 1–2% of the total revenue on their printing expenditure.

September 2011 | www.recyclingtimes.com.cn

Recycling Times Magazine

Features

What is cloud computing? by C. Thomas Ashley, Director, Pivotal Resources USA Public and private clouds Cloud computing, the latest computer buzzword, is very much overhyped and misunderstood. Even those who understand it can’t agree on what it encompasses or how to define it. In this article, I hope to define and clarify this new terminology. In the simplest terms, cloud computing is a form of outsourcing. An individual or a company buys information technology resources as services, usually from a single supplier operating in the public cloud. In some cases, however, these resources may be supplied by an internal department, in a private cloud implementation. Customers are billed only for those resources, such as data storage and computing power, that they actually use. These services are delivered over the internet, while private implementations, are transmitted over an internal network, behind a firewall. For the corporate user, the public cloud can deliver significant improvements in efficiency and cost-effectiveness, as the service provider makes the capital investment in hardware and software infrastructure and offers them on demand. The server is said to offer “infrastructure as a service” (IaaS). The service provider may also offer application software on demand, or “software as a service” (SaaS). The user accesses and controls the services through a web browser or web application, typically from a PC but potentially through web browsers on mobile phones, tablet computers, etc. The service provider’s infrastructure must be highly scalable; that is, able to supply as much or as little storage, computing speed and power, bandwidth, etc. as needed to handle the peaks and valleys in demand from each of its subscribers. Typically, peak demand occurs only rarely, for example, as demand on a web site at the time of a product launch. It seldom occurs for several users at the same time, and the provider can usually balance the load even when it does.

Google’s Gmail A simple and familiar example of this is Google’s Gmail electronic mail service. The user needs only an internet connection and a web browser on any device. Google

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provides the server and the email management software in the cloud. The company also offers office applications (Google Docs), calendar management, and other services in the same way. These services are offered to businesses at low cost, but are also offered to individuals at no charge, where they are supported by consumer advertising. Many other companies also offer similar services, which are used typically by smalland medium-sized enterprises and by individuals. For the corporate user, cloud computing may be seen as the latest stage in the evolution that began with mainframe computing using dumb terminals and continued with clientserver computing, using networked PCs. In the cloud environment, the software and user files don’t reside on the PC or even on local servers, but in the cloud. (The term cloud apparently originated with the use of the term by IT departments to describe the internet, the inner workings of which were often unknown to the user.) The biggest change for the average corporate user is in the user interface, which becomes a web browser or custom web application. The fact that browsers and some web apps can run on a great variety of devices from mobile phones to large systems is a plus. For the small user (individual or small business), the cloud generally means a greater change. No longer must one make a capital investment in servers or software; both are rented, in effect. The user often gains access to software and services that were out of reach before. Increasingly, service providers are offering both business and personal applications and storage. And these services are often accessible from an even

Recycling Times Magazine

Features wider range of devices, including music players. In fact, the storage and management of audio and video content is a feature of most consumer cloud services.

Apple’s iCloud A good example is Apple’s recently announced iCloud, though it is typically Apple — a proprietary and rather closed environment. Still, it offers features that more often providers have only begun to implement. In Apple’s words, “iCloud stores your music, photos, apps, calendars, documents, and more. And wirelessly pushes them to all your devices— automatically. It’s the easiest way to manage your content.” The iCloud integrates well with Macintosh iWork and other Apple iOS applications, the iTunes content service, iBookstore, Apple TV and more. It is a paid service. With the cloud such a hot topic, many companies have rushed to develop cloud offerings, and many more have renamed existing services, such as online storage or backup, to make them look like cloud services. These do fit the broadest definition of the cloud which is “virtual servers available over the internet” but don’t rise to the level described above.

Printing and the cloud Since public cloud computers may be half a world away and most printing needs to be done locally, printing from the cloud is not trivial. In the corporate environment, cloud printing capability is often integrated with managed print services (MPS) on a local server that accepts print jobs from the cloud and distributes them to the appropriate printers. In other cases, printing may be done on newer cloud-ready or cloud-aware printers, and also on other, older printers. Cloud-ready printers, once registered with the cloud print

service, can receive print jobs directly over the internet. They have their own IP addresses and/or email addresses for this purpose. Other printers connected to a PC or a PC network can accept cloud print jobs via a small application running on any PC on the network. Print jobs can be directed to any host computer or printer for which the IP or email address has been registered with the cloud provider. Many recent offerings combine MPS with public cloud computing, with the print server in the cloud. Cloud printing has another meaning as well. The cloud environment may provide the infrastructure for printing from mobile devices, such as smart phones and tablet computers that lack physical connectivity. Users can print documents that reside on these mobile devices and can also direct printing from various web sites such as map providers and online photo storage sites. Of course mobile users may direct print jobs to nearby printers, including those at hotels and print service providers.

Security and growth While cloud computing offers many benefits, there are also drawbacks. The most obvious is security; all of the data stored in the cloud is readily available to the service provider, and its security is determined by the measures the provider takes. To use the cloud to store and supply the most sensitive information requires great trust in the provider. The fact that the technology is constantly evolving and that there are few standards is also a concern to some. It seems likely that ever-better access to broadband internet access and the need for efficiency and even austerity in computing resources will continue to drive growth in cloud computing.

C. Thomas Ashley Tom Ashley, Director of Pivotal Resources USA, has more than 40 years experience in digital printing. Ashley founded the US branch of Pivotal Resources, Ltd. (Cambridge, UK) in 2002. From 1986 to 2001, he held senior management positions with BIS Strategic Decisions and CAP Ventures (now, InfoTrends), both widely recognized international consulting firms specializing in digital printing. From 1984 he was Associate Director of the Electronic Printer Service at Dataquest, a prominent Silicon Valley technology-consulting firm. Prior to this he was Manager of Technology at Control Data Corporation, heading up its laser and inkjet printer development programs. Mr. Ashley was with IBM Corporation for 15 years, where he managed groups developing photoreceptors, inks, and toners for IBM's first copier, first laser printer, and first inkjet printer. Mr. Ashley holds an AB degree in Mathematics and Chemistry from Transylvania University and an MS degree in Physical Organic Chemistry from Marshall University, with additional graduate work in management at the University of Kentucky. He had presented at more than 100 international conferences on digital printing.

September 2011 | www.recyclingtimes.com.cn

Recycling Times Magazine

Features

Cloud-activated printing, peripherals, supplies and resolution wars Martin Hingley, ITCandorPrinting and the Cloud - highlights • There are 3 types of Cloud-activated printing » Professional Finishing/Personalised Content » Official Forms, Coupons and Tickets » Cloud-Aware Printing • HP, Google are leading the discussion on Cloud-aware printing in 2011 • Printing is losing to Processing in the Resolution Wars as screens improve, reducing the need for output • Opportunities for supplies companies are in servicing new locations and extending into paper-replacement products • Removing the PC from the loop and allowing other devices to print directly via Wi Fi is the aim of many printer companies Cloud-activated printing -- bridging the gap between physical and virtual

‘Cloud printing’ is an awkward name, as the process involves both the physical delivery of printed material to the customer and the creation of that material online through virtual connection to the service supplier. ‘Cloud Activated Printing’ is therefore probably a better term, because it encompasses both physical printing and Cloud services.

Professional Finishing Personalised Content

e.g. Moonpig, Snapfish

Official Forms, Coupons, Tickets

e.g. Airline boarding passes

Cloud-Aware Printers

e.g. HP e-print Google

Figure 1 – Three types of cloud-activated printing (Source: ITCandor, 2011)

www.recyclingtimes.com.cn | September 2011

Essentially we believe there are three subdivisions of Cloudactivated printing – ‘Professional Finishing/Personalised Content’, ‘Official Forms, Coupons, Tickets’ and ‘Cloud-Aware’ (see Figure1). We’ll concentrate mainly on the latter in this discussion. In this article we’ll look at what’s different in new services from printing companies and predict how the growing prevalence of Cloud computing is opening up new opportunities. Resolution wars and the battle between processing and printing

Processing and printing have been competing with each other for customer spending for decades. Microsoft PCs slowly moved to What-You-See-Is-What-You-Get ( WYSIWYG), following the lead given by early and, of course, Apple’s introduction of the Macintosh in 1984. Laser printing only really got going when HP introduced its first LaserJet in 1984, using a Canon engine, as it still does today. The battle between computers and printers for customer spending was a question of resolution as much as the automation of existing analogue processes. In particular: • Computer screens changed from monochrome to color and from character to WYSIWYG over time. • Screens had varying sizes and associated resolution, but took a distinct jump when Cathode Ray Technology (CRT) was replaced by flat screen Liquid Crystal Display (LCD) types. • Today most screens still shine light into our eyes, although ebook readers such as Amazon’s Kindle create passive images using digital ink. • Laser printers were measured against linotype printer resolution (1,000 dpi) in the early days; initial devices were monochrome with a resolution of 300 dpi and it wasn’t until they got to 600 dpi that they were a significant challenge for professional output. • The introduction of inkjet technology allowed WYSIWYG

Recycling Times Magazine

Features

September 2011 | www.recyclingtimes.com.cn

Recycling Times Magazine

Features image printing and moved quickly from monochrome to color, although an inferior resolution restricted its use to consumers and internal business applications for many years. It wasn’t until 2010 that HP started a campaign to sell inkjet printers to business for instance. • The introduction of digital cameras and color inkjet printers (almost always processed by a PC) has enabled a revolution in photography since the late 1990s – a market enhanced by the inclusion of cameras on the majority of the 1.3 billion mobile phones sold last year. • The addition of wired and Wi Fi Ethernet ports to higherend printers (HP has fitted them to all machines priced at over $99, shipping 5.6 million in the process) enables them to be accessed from smart phones, gaming consoles and other alternatives to the PC. For many of us early computer users, printing out documents was essential, as whatever the printer technology you used, it was always easier to read a printed copy than the screen version. Paper usage has increased significantly through computing, despite the 1980s promise of the ‘paperless office’. In addition many processes relied on physically filed documents. Even today the unreliability of computer files – especially the possibility of losing them due to failing hard disks or insufficient backup disciplines – means that we still keep physical copies of important documents. For many this is even more important with photography, where some people have 100-year old pictures of their ancestors on their mantelpieces and many, albums covering decades of family history. Regardless of whether or not digital prints will last as long as those produced by analogue chemical processing, I’m sure keeping mementos will not disappear in the future. Many processes duplicate paper and electronic storage of important documents, with a strong role for scanners, MFPs and OCR software as an input of paper documents into the realm of computing. HP for instance talks about its network enabled MFPs as ‘‘the on and off ramps to digitised workflows’. Processing has been winning in the resolution wars, but that doesn’t mean that printing is doomed. In particular: • Despite the significant reduction in the proportion of documents and photos that are printed, the exponential growth in capturing images and writing documents make the peripherals companies rich through the demand for more ink and paper. • Digital Cameras themselves are usually classified as peripherals, making money for ‘printer’ producers such as

www.recyclingtimes.com.cn | September 2011

Canon and Ricoh. • Printers more specialised and harder to design and manufacture than PCs, which share a common design; this has led to a smaller number of manufacturers and higher margins – especially on ink and toner cartridges. • PC and software companies don’t regularly get paid when their users read a document, while printer companies and peripherals suppliers do. However the PC itself as a product is reaching maturity – we believe the worldwide installed base will never grow above 700 million, not least because of the rising importance of the smartphone, whose installed base is likely to overtake PCs around 2014. There is no question that close association with PCs and Microsoft operating systems currently constricts the printing industry. The need to find and install appropriate drivers and format documents is well understood, but there has been no accepted standard for printing directly from the internet without converting HTML documents to PDFs or word processor formats, which is time consuming for users and restricts the quantities of print output. The internet was not designed with printing in mind and has been more environmentally conscious as a result. However the internet is a constantly changing environment which could provide users with a better experience if it manages to address the current difficulties in printing. It’s hardly surprising therefore that printer companies are trying to pre-empt this shift in emphasis in input devices by addressing and easing the connections. A vendor roundup of Cloud -activated printing announcements

It is often an aim of systems companies to allow access to any application from any device, from any location. For whatever reason, printing has seldom been included in the discussion. In 2011 a number of vendors are addressing the issue by launching initiatives, alliances, software and hardware to allow easier printing from PCs, smart phones and other devices connected directly to the internet: many call this

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Features ‘Cloud printing’, which we have already described as an inadequate name. We prefer to call this ‘Cloud aware printing’. A number of printer companies are already involved in other areas of Cloud-activated printing, whether through offering Managed Print Services (MPS), user activated professional printing or network-attached printers and MFPs. Google Cloud printing as a feature of the

the MFP panel. It also offers manage print services – especially in Japan and Asia. Ricoh HotSpot printing

Ricoh has launched HotSpot printing which circumvents the need to install drivers, user software licenses or Bluetooth. Aimed at business users, HotSpot allows emails and online content to be printed directly by featured printers and MFPs.

Chrome operating system

Google is adding a feature to its Chrome operating system, which is said to allow users to print from PCs, and smart phones, regardless of their location for Google Cloud print enabled web and mobile apps. The mass adoption of its Android operating system (47 vendors at the beginning of 2011) should help its approach to be strongly supported, although there are many examples of supported features not becoming popular in the past. HP e-Print and other directions

HP has been providing connected management for its printer users for a number of years, sending them reminders for ink replacement, managing drivers and providing the company with significant amounts of usage data. Its latest announcements have been in the ‘Cloud printing’ area for which it has launched e-Print. Once users have registered, emails can be sent to the printer, which will handle a number of types of documents, including Word files, Excel sheets, PDFs and photos. Its inclusion of WebOS from its Palm acquisition will allow it to build advanced features into its own PCs, smart phones and tablets. As already mentioned HP has added wireless ethernet networking to all of its printers costing over $99 and claims to have sold 5.6 million as of Q1 2011. At a recent conference held in a Hilton Hotel in California it $250 demonstrated wireless printing for attendees. HP’s IPG division offers Cloud services branded $200 Snapfish, for which it claims to have 89 million customers in 32 different countries. I classify these $150 as ‘Professional Finishing, Personalised Content’ $100 category of Cloud-activated printing. Canon imageRUNNER

Canon in the US has launched its imageRUNNER ADVANCE software, which enables associated office systems to access Google Docs and Microsoft SharePoint online cloud-based services directly from

Toshiba e-Studio

Toshiba has launched e-Studio software to its MFPs, which is designed to work with Google apps, Evernote and Dropbix. By using Cloud computing, users can store data directly on their printers which can print via the Cloud without the intervention of PC or server. Cloud-activated printing in recent alliances

HP, Dell, Cisco, Intel and Citrix have formed the OpenStack Alliance, which defines a standard reference architecture for improving the interactions between common software and hardware. Cortado’s Cloud printing alliance includes Brother, Dell, Funkwerk, Konica Minolta, Kodak, Lexmark, Oki and Toshiba among its members. It offers a free app to iPhone, iPad, Android and BlackBerry smartphone users for easy standard connections to printers. Cloud-activated printing increases opportunities for peripherals vendors

Our view is that the overall peripherals market will reach a peak of $191 billion in revenue in 2014 before tailing off (see Figure 2) – a similar scenario to the PC market. Trying 20% Revenue ($b)

15%

Growth % 10%

$50

-5%

-10%

$0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Figure 2 – Worldwide peripherals forecast – revenue ($US billion) and revenue growth 2003-2016 (Source: ITCandor, 2011) September 2011 | www.recyclingtimes.com.cn

Recycling Times Magazine

Features to hook up with alternative devices and the internet will be a positive activity in sustaining the business, especially as there are a surprising number of inefficiencies in connecting and printing today. However, we expect the resolution wars to continue, with improvements in screen technology winning over advances in the scope of printing. Of our three identified areas we expect different developments: • Professional Finishing, Personalised Content – Cloud services from HP Snapfish, Moonpig and others will continue to take business from consumers and businesses which need good quality output without users needing to buy their own high-end printer. Even here physical documents are competing with electronic ones sent to the recipient for printout; there are also many local opportunities for specialist printers building out Cloud services here too. • Official Forms, Coupons and Tickets – many airlines offer travellers the opportunity to print boarding passes at home, including bar codes. This area will be limited by the need for formal documents created through Cloud service interaction. In those countries, like the US, where coupons are popular, this is undoubtedly creating extra demand for consumer printers • Cloud Aware Printers – commonly called Cloud printing, this is probably the strongest opportunity for peripherals suppliers, although it will be hard to evaluate how much extra output is created through the extension of printing to new devices and the simplification of connections If HP is right in its estimate that only 10% of the 52 billion blank pages sold each year worldwide are printed using digital processes, expanding connectivity of printers to non-PC devices should help expand the percentage. Implications for printer supplies companies

There are a number of implications for those providing supplies for printers and MFPs, many of whom are readers for this magazine from the development of Cloud-activated

printing. In particular: • Not to be caught out in the resolution wars they need to consider adding memory cards, digital signage, tablets and ebook readers to add to their paper, ink and laser cartridges business • Cloud Printing will lead to an expansion in the types of customer and location for supplies – railway stations and airports, shopping malls and department stores will require new contracts and ‘pay-as-you-go’ pricing for paper; in public places new peripherals suppliers will emerge with contracts to provide local printing directly from the Cloud • Those already providing paper to analogue ticketing machines will need to follow the trends towards Cloudactivated printing and make sure they don’t lose out as new manufacturers emerge As for the resolution wars - digital ink and paper will never totally replace the use of the printed page: but it is important that peripherals companies don’t get left out as Amazon and others pioneer the ebook market. Slowly the current dark grey on light grey screen will be replaced with black on white and even colored digital ink on white ones. Peripherals and supplies companies need to take a stake, just as they did as cameras became digitised. Cloud printing in its different dimensions will offer many ways for peripherals and supplies companies to extend their business and accommodate changes from today’s PC-based output world. We’ll be following developments closely.

Martin Hingley Martin Hingley is the owner and Chief Research Officer of ITCandor -a market research company dedicated to reporting on the Information Technology and Communications (ITC) industry. Martin is a veteran researcher of the ITC market. Starting his career with Inteco in 1983, he moved to IDC in 1986 and stayed there until leaving to form his own company in 2009-latterly as its Chief Research Officer. He has extensive experience in researching, analysing and reporting the ITC market at a country, regional and worldwide level. His key focus has been hardware products such as PCs, servers, enterprise networks, thin clients and peripherals.

www.recyclingtimes.com.cn | September 2011

Recycling Times Magazine

Features

Major OEMs release Q2 financial reports Hewlett-Packard 2Q11 (ended April 30, 2011)

(By the time of the publication, HP has released its financial report of Q3. For more information please visit our website.) HP has announced financial results for its second fiscal quarter ended April 30, 2011. The net revenue of USD 31.6 billion was up 3% from the prior-year period as reported and up 1% when adjusted for the effects of currency. Second quarter gross margins and operating margins were up 1.0 and 0.1 percentage points respectively year-over-year. Continued strength in commercial businesses resulted in commercial revenue increasing 8% year-over-year, with printer revenue up 7%. Enterprise servers, storage and networking revenue was up 15%, while software revenue was up 17%, and commercial PC clients’ revenue up 13%. Revising full year GAAP diluted earnings per share, the outlook was down to at least USD 4.27 and non-GAAP diluted earnings per share outlook down to at least USD 5.00 Non-GAAP financial information excludes after-tax costs of approximately USD 0.19 per share and USD 0.18 per share in the second quarter of fiscal 2011 and 2010, respectively, related primarily to the amortization of purchased intangibles, restructuring charges and acquisition-related charges. ‘HP executed well and delivered a solid quarter’, said Léo Apotheker, HP president and chief executive officer. ‘Our enterprise strategy, with services at its core, is focused on higher value-added solutions. Today we are accelerating our

Q2 FY 2011 Net revenue (USD bn)

31.6

GAAP operating margin (%)

9.4%

GAAP net earnings (USD bn)

2.3

GAAP diluted EPS (USD)

1.05

Non-GAAP operating margin (%)

11.3%

Non-GAAP net earnings (USD bn)

2.7

Non-GAAP diluted EPS (USD)

1.24

efforts to align our services business model to our long-term strategy to deliver unprecedented value to our customers and a better return for our shareholders.’ Trends and regional performance

Results were largely driven by performance in the commercial sector as businesses continued to spend on technology. HP experienced uneven consumer performance across its product categories during the quarter with continued lack of robustness in consumer PCs across all geographical areas. Second quarter revenue was up 2 % year-over-year in the Americas to USD 13.8 billion. Revenue was down 1 % in Europe, the Middle East and Africa to USD 11.7 billion and up 10 % in Asia Pacific to USD 6.1 billion. When adjusted for the effects of currency, revenue was up 1 % in the Americas, flat in Europe, the Middle East and Africa and up 4 % in Asia Pacific. Revenue from outside of the United States in the second quarter accounted for 66 % of total HP revenue. HP saw accelerated growth in BRIC countries (Brazil, Russia, India and China) with revenue increasing 19 % while accounting for 12 % of total HP revenue. Imaging and Printing Group (IPG) revenue grew 5 % yearover-year with a 17.0 % operating margin. IPG continued to deliver strong performance across the business with share gains in all printing categories and 41 % year-over-year growth in commercial printer hardware units. IPG continued to drive innovation and momentum with the new ePrint platform, graphic arts and other Q2 FY 2010 Y/Y commercial print solutions. 30.8 3% HP’s EVP and CFO Cathie L esjak commented the performance of IPG during 0.1 9.3% pts the press conference. ‘The imaging and printing business 2.2 5% delivered solid performance in the second quarter, with revenue growth of 5 % to 0.91 15% USD 6.7 billion, led by commercial revenue 0.1 11.2% growth of 7 % and supplies revenue growth pts of 7 %. Segment operating profit totaled 2.6 3% USD 1.1 billion, or17 % of revenue, while we continue to invest in innovation and 1.09

14%

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Features growth.’ ‘Total printer unit shipments increased 12 %, with commercial and consumer printer units up 41 % and 4 %, respectively, as we gained market share in laser printer hardware. We are seeing solid momentum in our growth initiatives as we continue to lead the market with innovative new products. Indigo digital press page volume was up 22 % year-over-year. Our color laser and multifunction printer units grew 26 % and 60 %, respectively, while business ink unit shipments increased double digits from the prior year, and shipments of wireless printer units more than doubled.’ ‘In addition, we shipped more than three million webconnected printers in the quarter. We will continue to target these markets aggressively, leveraging our technology leadership to drive the shift from analog to digital printing.’ Asset management

HP generated USD 4.0 billion in cash flow from operations in the second quarter. Inventory ended the quarter at USD 6.8 billion, with days of inventory up one day year-over-year at 26 days. Accounts receivable of USD 18.6 billion was up ten days year-over-year at 53 days. Accounts payable ended the quarter at USD 14.2 billion, up three days from the prior-year period. HP's dividend payment in the second quarter resulted in cash usage of USD 182 million. HP also utilized USD 2.7 billion of cash during the quarter to repurchase approximately 64 million shares of common stock in the open market. HP exited the quarter with USD 12.8 billion in gross cash. Outlook

HP's revised outlook for the third quarter and the full year fiscal 2011 reflects an expected near-term impact from the Japanese earthquake and related events, continued lack of robustness in sales of consumer PCs, and reduced operating profit expectations for services. For the third quarter of fiscal 2011, HP estimates revenue of approximately USD 31.1 billion to USD 31.3 billion, GAAP diluted EPS of approximately USD 0.90, and non-GAAP diluted EPS of approximately USD 1.08. HP expects full year fiscal 2011 revenue in the range of USD 129 billion to USD 130 billion, GAAP diluted EPS of at least USD 4.27, and non-GAAP diluted EPS of at least USD 5.00. Canon 2Q11 (Ended June 30, 2011)

Looking back at the global economy in the second quarter of 2011, the United States saw a temporary slowdown due to supply chain disruptions triggered by the earthquake that struck northeastern Japan coupled with surges in fuel and

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food prices, while in Europe, trends continued to vary by country. In Japan, although the economy decelerated in the wake of the Great East Japan Earthquake mainly due to a drop in production activities, the economies of China and India continued to achieve solid growth fueled by stable domestic demand, leading to a continued moderate recovery of the global economy. Demand for network digital multifunction devices (MFDs) in the Japanese market declined due to the adverse effects of the earthquake, and overseas markets continued to realize a moderate recovery. Laser printer markets continued to display solid growth boosted by emerging economies. Overall demand for inkjet printers remained at around the same level as the previous year. Some of these markets incurred temporary product supply shortages due to the impact of lower production in the aftermath of the Japanese earthquake. Net sales for the second quarter totaled ¥836.6 billion (USD 10,328 million), a decrease of 13.8 % from the year-ago period, largely due to such factors as the appreciation of the yen against the US dollar and a shift in market demand toward more competitively priced products. There was also a reduction in sales of compact digital cameras and digital network MFDs resulting from the significant impact of component supply shortages following the earthquake, and decreased sales of LCD lithography equipment as an outcome of the sluggish market. Net sales for the six months ended June 30, 2011 totaled ¥1,675.8 billion (USD 20,688 million), a year-on-year decrease of 2.9 %, reflecting the effects of new consolidation arising from the acquisition of Océ N.V. in the previous year. Basic net income attributable to Canon Inc. stockholders per share for the second quarter was ¥43.99 (USD0.54),

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Features a decrease of ¥10.68 (USD 0.13) compared with the corresponding quarter of the previous year, and ¥89.16 (USD 1.10) for the first half of 2011, a year-on-year decrease of ¥11.52 (USD 0.14). Office Business Unit

Within the Office Business Unit, despite the admirable sales performance of the imageRUNNER ADVANCE series products, sales volume of digital network MFDs decreased from the year-ago period due to the impact on production arising from parts supply shortages following the earthquake. As for laser printers, buoyed by hearty demand, sales volume remained in line with that of the corresponding period of the previous year thanks to efforts targeting an early recovery in production and expanded sales. Second-quarter sales for the segment totaled ¥465.8 billion (USD 5,751 million), a drop of 10.8 % year-on-year, reflecting the appreciation of the yen against the US dollar. Sales for the combined first six months of the year totaled ¥946.7 billion (USD 11,687 million), growing 1.7 % year-on-year owing to the impact of the new consolidation in the previous year, while operating profit decreased by 21.2 % to ¥122.9 billion (USD 1,517 million). Outlook

As for the outlook in the third quarter onward, despite increasing downward risks, the trend of moderate recovery is expected to continue. The Japanese economy is expected to take considerable time to recover from the effects of the earthquake. In the office equipment market, demand for such products as network digital MFDs and laser printers is projected to grow steadily, particularly in emerging economies. Following the earthquake, uncertainty remains in Japan over such factors as electricity shortages. Taking into consideration foreign exchange rate assumptions, current economic forecasts and an expected second-half boost in sales supported by the swift recovery of production, Canon projects full-year consolidated net sales of ¥3,780.0 billion (USD 46,667 million). This represents a year-on-year increase of 2.0 % and income before income taxes of ¥380.0 billion (USD 4,691 million), a year-on-year decrease of 3.3 %. Océ 2Q11 (ended June 30, 2011)

Published on July 22, 2011, Océ’s second quarter ended with a net loss of –14 million (about USD 19.98 million) comparing with the loss of –11 million over the same period last year. Its total revenues dropped 4 % to 626 million (about

USD 893.2 million) over the figure of 676 million in 2010. Rokus van Iperen, Chairman of the Executive Board of Océ commented, ‘Revenues continued to decrease in the challenging second quarter due to several circumstances. The construction markets in the USA and Europe showed an even further decline compared to last year. This had an impact on the development of the total results of Wide Format Printing Systems. The revenues in cutsheet printing were affected by changes in the product portfolio, which slowed the pace of new sales. Océ was also hit by supply chain issues as a consequence of the Great East Japan Earthquake’. ‘Three types of actions were put in place and are being executed vigorously to support our business in the second half of this year. In the first place we are ramping up production of new products introduced recently and well received in the market. We have strongly intensified our marketing and sales efforts to increase revenues. And we have put a stringent cost control program in place to improve the bottom line.’ ‘We have combined the sales and service operations of Canon and Océ in Switzerland and Japan. The preparation and implementation of the integration of Océ into the Canon Group is being executed according to plan.’ Also in the 2Q11 report of Océ, the information concerning the cooperation with Canon was specified as follows: Cross-selling

Revenues from the sale of Canon products by Océ slightly increased in the second quarter. The sales staff of Canon also signed an increasing number of orders for Océ systems. During the quarter, the training of the Océ sales force in selling small format Canon printers was completed. In May 2011, Océ participated in Canon Expo Shanghai, which hosted 35,000 visitors. During the event, Océ exhibited wide format and production printing systems for customers

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Features and leads across China and other Asian countries. Joint product development

Following the successful joint development and demonstration in Europe and the United States, customers of both Canon and Océ showed strong interest in the imagePRESS C7010VPS series. Customers benefit from the combination of Canon image quality and productivity, as well as the processing power of Océ’s PRISMAsync workflow. Later this year, other jointly-developed products will also be launched. Preparing the integration

Steps were taken in the second quarter along the road to full cooperation and integration. The printing operations of Canon and Océ in Japan were combined, as were those in Switzerland. The sales companies involved are better positioned to enhance revenues and offer their products and services to a broader customer base. The preparation and implementation of the integration of Océ into the Canon Group is being executed according to plan. Epson 1Q11 (ended June 30, 2011)

Published on July 29, 2011, the situation in the main markets of the Epson Group (Epson) was as follows: Demand for consumer inkjet printers was steady overall, though there was some regional variation. Business inkjet printer demand was weakened by corporate spending restraints in the printing industry and other sectors in the face of concern over economic uncertainty in Europe and America. In the expanding economies of China and other parts of Asia, however, business inkjet demand steadily climbed. The serial dot matrix printer (SIDM) market shrunk in America,

Europe, and Japan, while demand remained firm in other regions, including China, Southeast Asia and South Asia. In Point of sales (POS) systems, retailer capital investment registered signs of a recovery. However, the rate was weak, with US retailers still reluctant to invest. The projector growth trend weakened compared to the strong first quarter of last year. Demand for the main electronic device applications generally remained steady across the period. New mobile phone demand was firm, underpinned by steady increases in unit volume in India and China. Smartphones drove the overall mobile phone market, with a rush of new models launched as transmission speeds grew faster. The digital camera market remained steady, with sales of SLR models particularly firm. The tablet PC market also expanded. On the other hand, television and PC orders were generally weak, especially in the advanced economies, while the portable media player (PMP) market trended downward as the first round of demand wound down and media player features become more common on mobile phone handsets. In other areas, signs of demand growth in the watch business were seen as the economy improved. Robot demand also increased along with the rise in demand for automobiles in overseas markets. Epson is currently operating under the final year of a midrange business plan that seeks to restore profitability and rebuild the business foundations of the company as it moves toward the long-range SE15 (a long range vision of Seiko Epson for 2015) goal of becoming a community of robust businesses. In the current fiscal year the company will adapt to the environmental changes brought about by the East Japan Earthquake while at the same time aim to ‘set Epson on a new growth path’ as initially planned, setting the stage for the next mid-range business plan for achieving the goals of SE15. First-quarter net sales were ¥217,735 million ($2,697,076 thousand), down 9 % year-over-year. Operating income was ¥3,631 million ($44,977 thousand), down 66.2 % year-overyear. Ordinary income was ¥2,389 million ($29,592 thousand), down 78.7 %. Net loss was ¥3,223 million ($39,923 thousand) compared to net income of ¥7,944 million in the same period last year. Information-related equipment

The printer business reported a decline in net sales (including both printer units and consumables). In inkjet

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Features

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Recycling Times Magazine

Features printers, unit shipments of consumer models declined due to the effects of the earthquake and aggressive pricing by competitors. Unit shipments of large-format printers for enterprise grew despite the effects of the disaster. This was largely fueled by steady general demand from the signage market and tender business wins in Europe and America. Meanwhile, consumables unit shipments declined as printer use fell due to the effects of the disaster and a slowing of economic growth, while changes in the model mix brought about an increase in average selling prices. SIDM printer unit shipments increased due to demand associated with China’s tax collection system. Sales of page printer consumables declined in part because of a decline in the install base but also because of a lower printer utilization rate associated with the disaster. Factors resulting in increased printer revenue were largely canceled out by the effects of yen appreciation. Segment income in the information-related equipment segment declined. It was hurt by yen appreciation and the effects of lower revenue resulting from decreased volumes. First-quarter net sales in the information-related equipment segment were ¥157,748 million ($1,954,019 thousand), down 7.3 % year-over-year, while segment income was ¥13,310 million ($164,883 thousand), down 29.1 % year-over-year. Samsung 2Q11 (ended June 2011)

Samsung Electronics Co., Ltd. announced revenues of 39.44 trillion Korean won (about USD 37 billion) on a consolidated basis for the second quarter ended June 30, 2011, a 4 % increase year-on-year on July 29, 2011. For the quarter, the company posted consolidated net income of 3.51 trillion won (about USD 3.289 billion), representing an 18 % decrease yearon-year. Consolidated operating profit for the quarter was 3.75 trillion won (about USD 3.514 billion). By business segment, telecommunications drove revenue growth in the second quarter, with sales rising 43 % yearon-year due to strong demand for Samsung’s GALAXY SII smartphone and other mobile devices. Digital Media & Appliances saw sales increase from the previous quarter supported by improved demand for flat panel TVs. Operating profit declined year-on-year from the recordsetting second quarter of 2010, as weakened demand reduced margins in the semiconductor and display panel businesses. The bottom line was supported by an operating profit of 1.67 trillion won (about USD 1.56 billion) from the telecommunications businesses.

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‘Despite the challenging business environment and global economic uncertainties, we achieved continued year-on-year revenue growth in the second quarter driven by mobile device sales, particularly the success of our smartphones,’ said Robert Yi, Vice President and Head of Samsung Electronics’ Investor Relations Team. ‘Heading into the third quarter – which typically sees increased consumer demand for electronics – we expect competition to remain tight, and will continue to enhance our cost competitiveness and technology leadership in the components businesses.’ Capital expenditure for the second quarter was 5.6 trillion won (about USD 5.25 billion), bringing the total investment for the first six months of 2011 to 11.2 trillion won. Samsung said the annual projected capex of 23 trillion won remained unchanged, however a shift in allocation to increase semiconductor and reduce LCD investment was possible. Lexmark 2Q11 (ended June 30, 2011)

On July 26, 2011, Lexmark International, Inc. recorded GAAP and non-GAAP EPS of USD 1.27 and USD 1.36, respectively. Its GAAP and non-GAAP operating income margin is 13.2 % and 14.2 % respectively. The GAAP revenue reached USD 1.044 billion, while non-GAAP reached USD 1.045 billion ‘Record EPS, a very strong operating income margin, and better than expected revenue performance highlighted Lexmark’s second quarter financial results,’ said Paul Rooke, Lexmark chairman and chief executive officer. ‘We saw continued revenue growth in our strategic focus areas with core supplies at a double digit rate, and managed print services at a rate of more than 25 %.’ ‘ We also announced new sof tware solutions and strengthened our workgroup color lineup to help business customers capture, manage and access their content more easily and affordably,’ stated Rooke. ‘Lexmark continues to maintain a strong financial position with a solid balance sheet, good liquidity and a long history of cash generation, and we remain focused on increasing shareholder value.’ Earnings per share

2Q11

2Q10

GAAP

USD 1.27

USD 1.07

Restructuring related adjustments

0.05

0.08

Acquisition-related adjustments

0.05

0.08

Non-GAAP

USD 1.36

USD 1.23

Recycling Times Magazine

Features In the second quarter, Supplies revenue grew 3 % year-onyear, Hardware revenue declined 9 %, and Software and Other revenue grew 33 %, or 30 % excluding acquisition-related adjustments. Imaging Solutions and Services (ISS) revenue of USD 1.020 billion declined less than 1 % in the second quarter compared to the same period last year. Perceptive Software revenue in the second quarter was USD 24 million, or USD 25 million excluding acquisition-related adjustments, compared to USD 6.4 million, or USD 8.4 million excluding acquisition-related adjustments, in the second quarter of 2010 Looking Forward

In the third quarter of 2011, the company currently expects revenue to be flat to down in the low single digit percentage range year-on-year. GAAP earnings per share in the third quarter of 2011 are expected to be around USD 0.86 to USD 0.96, or USD 0.94 to USD 1.04 excluding USD 0.08 per share for restructuring-related and acquisition-related adjustments. GAAP earnings per share in the third quarter of 2010 were USD 0.90, or USD 1.09 excluding USD 0.19 per share for restructuring-related and acquisition-related adjustments. Fuji Xerox 2Q11 (ended June 30, 2011)

Xerox Corporation has announced second-quarter 2011 results that include adjusted earnings per share of 27 cents. Adjusted EPS excludes 5 cents primarily related to the amortization of intangibles, resulting in GAAP EPS of 22 cents. ‘During the second quarter, our disciplined focus on scaling our services business and delivering operational improvements helped to increase bottom-line results and generate operating cash, positioning us well to increase our earnings expectations for the full year,’ said Ursula Burns, Xerox chairman and chief executive officer. Second-quarter revenue of USD 5.6 billion was up 2 % or down 1 % in constant currency. Revenue from technology, representing the sale of document systems, supplies, technical service and financing of products, was flat or down 4 % in constant currency. This was primarily due to supply constraints resulting from the natural disaster in Japan. The company noted that the impact on costs and revenue from the supply chain-related challenges were expected in the second quarter and that the situation is improving. ‘We’re seeing steady progress and making all the necessary investments to respond to customers’ needs,’ said Burns. ‘As a result, we are on track to reduce backlog while meeting new demand in the third quarter, and we remain confident we’ll

return to normal operations in the fourth quarter.’ Revenue from services was up 6 % or 4 % in constant currency, reflecting growth in business process and document outsourcing that offset a decline this quarter in IT outsourcing. Signings for Xerox’s services totaled USD 3.5 billion in the second quarter, up more than 15 % from last quarter and down 10 % on a trailing 12-month basis due to longer lead times for signing certain multi-year outsourcing contracts and the cyclicality of large deals. ‘Our leadership in managed print services contributed to 10% revenue growth in our document outsourcing business, and our diverse offerings in business process outsourcing resulted in 9 % BPO growth,’ added Burns. ‘As important, our pipeline remains very strong – up 21 % – helping to fuel our healthy annuity stream for the long term.’ Second-quarter gross margin was 33.4 %, and selling, administrative and general expenses were 19.9 % of revenue. Operating margin of 10.4 % was up 0.3 points from the second-quarter 2010. Xerox generated USD 347 million in operating cash flow during the second quarter. For the full year, the company lowered guidance to USD 2 billion to USD 2.3 billion in operating cash flow. Xerox reiterated its plan to use USD 1 billion in available cash for modestly-sized acquisitions and share repurchases. The company expects to resume its stock buyback program in the third quarter and plans to repurchase approximately USD 700 million of stock through the second half of this year. Xerox expects third-quarter 2011 GAAP earnings of 20–22 cents per share. Third-quarter adjusted EPS is expected to be 24–26 cents per share. The company raised its full-year 2011 GAAP earnings expectations to 91–96 cents per share. Full-year adjusted earnings are expected to be USD 1.07 to USD 1.12 per share.

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Recycling Times Magazine

Profiles

To smile, do business by heart — an interview of Acco Huang He has returned home from Australia. When you step into his office, your eyes are filled with green—the wall is green, the logo is green, as are so many other elements, but all are in harmony with each other. There is also one more element you cannot forget after meeting him—his smile. The warm and generous smile is always on his face. The smile is a universal language, so he always smiles at his clients. It fits in well with his high-quality products. Meet Acco Huang, the president of Aicon—a well known and respected cartridge manufacturer in China. Aicon is quite a special name, is there any story behind it? The pronunciation of Aicon is quite similar to “I can”, and we like this because it expresses our confidence in doing a good job and in providing high quality products to our clients. AICON also spells out our corporate philosophy. A stands for active, I for innovative, C for cooperative, O for open-minded and N for never give-up.

Tell us why you wanted to start your own business? Firstly, my origins are in Chaozhou and Shantou (this is also known as the Chaoshan area, which covers a part of eastern Guangdong province and the adjacent western part of Fujian province). This region has delivered many famous business people to China—many of whom are known internationally. Li Ka-shing, for example, was the founder of Cheung Kong Holdings and is China’s richest man. Ma Huateng, the CEO of the internet service giant Tencent in China is another. People in my hometown are good at doing business and have a great entrepreneurial spirit. As a one of the Chaoshan people, who are referred as ‘Oriental Jews’, I also wanted to start my own business. It was just in my veins. Secondly, my father is also a businessman, and I have been growing up with a strong desire to make contribution to my family, my hometown as well as the whole of society. Thirdly, my personal experience during my studies abroad also strengthened my idea of starting a business. I went to Sydney to study Marketing at the University of New South Wales. I found there are many Chinese products in Sydney stores, but most of them are very cheap and some are even counterfeit products. A large number of the Chinese enterprises focus on trading, but have no brand awareness. One day, when my lecturer

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▲ Acco Huang

asked me if China had its own famous brands. I responded loudly, “Haier electronic appliances”. But to my surprise, my teacher had never heard of them before. So I realized that many well-known brands and products are actually only popular in China. There were few famous Chinese brands in the world at that time. China’s neighboring countries like South Korea and Japan have a lot of brands that enjoy a worldwide reputation. So I determined to create a worldwide brand and build up a cooperative international distribution channel all over the world.

Did your previous working experiences pay the way for your business? When I first came back from Australia, my first job was as the retail manager of Škoda in Shenzhen. However, my performance did not meet my expectations, so I left three months later. My second job was as a sales representative of GlobalMarket. I had made a lot of phone calls but had been refused more than 4,000 times. I had visited more than 500 factories in Shenzhen but failed to make a single deal. Continuous frustrations eroded my confidence bit by bit, and

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Profiles sometimes the idea of calling clients would fill me with dread and fear. At this time, my supervisor encouraged me to be selfmotivated, strong willed, positive in my thinking, and to be a good team player. My third job was as international sales manager at a large general consumables manufacturer. Developing new customers was rewarding and I valued the opportunity to learn strategic thinking and listening to client’s needs, branding and industry networking. My director was a hardworking and reasonable lady, who always thought first about the clients and delivering quality and service. I learnt so much during this time, I cannot help but sincerely wish continued success with this company. Last but not least, I would like to mention Idei Nobuyuki. I attended a lecture given by this former chairman of Sony— a man who built Sony from a national company into an international enterprise. I have never forgotten his ideas, and his courage continues to motivate me during my tough times.

What difficulties did you faced at the beginning of Aicon? Looking back at the beginning of Aicon, I can say my first challenge was the change of my own role from a professional manager in the largest general consumables manufacturer to a small business owner of a consumables company. The second challenge came as our business grew larger. I had to build a management team and systems to increase our efficiency and replace the single-head structure. The toughest thing for me to do was the restructuring of my own mindset. But luckily Aicon has made the necessary changes with the help of our eighteen key members, who share the same dream and vision with me.

What about the development of Aicon in recent years, in particular its overseas reach? Aicon pursues what other suppliers are not interested in doing. This is our break through. We have built up our reputation in Middle East countries like Syria, Tunis, and UAE, while many clients from neighboring countries like Libya, Algeria and Turkey are also looking for dealerships of Aicon’s products. We enjoy a good reputation in South Africa as well. Now we are targeting emerging markets like Brazil, Russia and India for future development. Currently, Aicon clients are located in over 50 countries spanning Europe, the South Americas, Asia, Australia, Africa and the Middle East. Our clientele include several big suppliers of imaging products in Europe, one of the largest

▲ Idei Nobuyuki and Acco Huang

vendors of imaging products in Brazil, one of the biggest distributors of imaging products in Australia, large and small distributors and importers of printer consumables, as well as a large number of on-line consumables shops.

W h a t m e a s u re s h a v e b e e n t a k e n t o guarantee the quality of Aicon’s products? Aicon has cooperated with three ISO certificated manufacturing factories and a number of R&D institutes. A team of highly trained, quality employees is one of our competitive advantages to make sure each shipment meets Aicon’s standards. Our experienced engineers in each factory have been in the printing consumables industry for more than 10 years. We have strong R&D capability and strict testing measures. In our compatible inkjet cartridge factory for example, we have more than 20 engineers following international quality control procedures working with more than 200 experienced workers, producing more than 2 million units every month with a defective rate less than 1%. Currently we are using the ERP system to quantify and digitize the whole production and testing process which we believe will add more value for our customers. In a word, we understand our client’s market challenges so we will focus on their precise needs by providing excellent, tailor-made, printer consumable solutions and services.

Closing remarks Mr Huang’s smile is very impressive. It reminds you of the warm and affirming smile of a father. Indeed, Mr Huang is the father of a four-year-old daughter and his four-yearold company, which he always says is his second daughter. Maybe his heartfelt smile was generated by the growth of his daughter and the progress of Aicon. With the care and love of such a good father, we can expect Aicon to grow into the TIGER he intends it to be for the printing consumables industry. September 2011 | www.recyclingtimes.com.cn

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Market Data

World peripherals market update By Martin Hingley, ITCandor In our previous issue, we have covered the following topics:

• 2010 world revenues were USD 168 billion – growth 6% • China grew 11% to USD 3.3 billion • India grew 14% to USD 2.0 billion • A highly seasonal market with strong Q4 sales • 49% of revenues derived from consumers in the last year • HP leads the market, with Canon catching up • Newer players Dell and Samsung have joined Hitachi and Ricoh as second tier players In this issue, we will detail the topics below:

• MPS proved recession proof, but revenues have fallen back in the recovery • Growth will be low single-digit until 2014, followed by slight declines in 2015 and 2016 • The market is driven by digitisation of analogue processes • The market is slowed by the falling relevance of permanent physical pint-outs

Managed Print Services proved recessionproof, but growth has been slow during the recovery Last year we reported that Managed Print Services (MPS) had been resistant to the recession in hardware sales hit hard by the credit crunch. A view of world revenues is shown in Figure 5. Despite becoming a countervailing market component, the growth of MPS during the last few quarters has been less, with only a 5% increase in Q1 2011 against the 10% growth in peripherals hardware revenues. Our view is that the future market for MPS will continue to track the hardware market, not least because the effects of the earthquake in Japan is likely to dampen its success as an alternative to in-house printing for the next few quarters. The increase in digitisation is helping vendors take more money at the high-end – replacing large format analogue printing with computerised output, but the associated new purchasing appears to be equally balanced between the use of in-house equipment and service provision.

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Revenues from the business market are skewed towards small companies (those with less than 100 employees), which accounted for 49% of spending in the year to the end of March 2011: in comparison medium (companies with between 100 and 1,000 employees) accounted for 19% and large companies 38% of the market. Spending on printing by large companies has held up more strongly than in comparative markets (servers and storage systems for instance), due to the specific relevance of digitisation for high-end print output here.

Peripherals spending will grow reasonably and retain a strong Q4 seasonality As part of our research we forecast many different ITC offerings. Our predictions for future values of the Peripherals hardware market are shown in Table 1 (annual) and Figure 6 (annual and quarterly). Please contact us if you need more detail at a country or quarterly level.

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Market Data

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Market Data Table 1 – World Peripherals Market Forecast (Revenues $US Billion) Year

Revenue ($b)

Growth %

2003

$119

n/a

2004

$136

14%

2005

$144

2006

$151

2007

$162

2008

$170

2009

$158

-7%

2010

$168

2011

$175

2012

$184

2013

$189

2014

$191

2015

$186

-2%

2016

$181

-3%

Source: ITCandor, July 2011

We believe that annual growth in this market will be at the single-digit level for the future period between 2011 and 2014, with values declining slightly between 2015 and 2016. While the market for peripherals is increased by the process of digitisation, the propensity of users not to print images and documents will restrict growth in this mature market area.

Consumer spending on peripherals out-strips business Like the PC, the peripherals market is heavily dependent on consumer spending, which helps up more strongly during the recession. In the year to the end of March 2011 one third (USD56 billion) of the Peripherals revenues were from consumers – see Figure 7 for a view of quarterly revenues by consumer and business size sectors. There are a number of service offerings for consumers which provide external services for printing photos and documents (Snapfish, owned by HP for example). There is a strong potential business for suppliers to track the shifting balance in user devices from PC to smart phone and tablet over coming years to the extent that users will want to have physical printouts of images capture through social media applications. If they fail to do so, or if users of alternative client devices prove less interested in permanent images, the Peripherals market is like to suffer steeper declines than the ones we’re currently predicting.

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Peripherals markets in China and India are growing more rapidly China and India are very important countries to look at when studying the world market for peripherals, not only because they are emerging countries with huge populations, but also because they have a major role to play in manufacturing, software and service provision.

The peripherals market in China was worth USD3.3b in 2010 In total revenues from peripherals sales within China accounted for USD3.3 billion in 2010, having grown 11% in the year. Dell has had a strong focus on building business in BRIC countries (Brazil, Russia, India and China) and has been pointing to its success in its financial results. We believe it has managed to perform more strongly than Canon and HP, who as we have seen lead the peripherals market worldwide. Hitachi, Ricoh and Toshiba are also strong vendors in China as is shown in Figure 8. We looked at the development of market share for peripherals vendors in China – the results for which are

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Market Data shares of the world leading peripherals supplies makes it an interesting country to watch. Again there are a number of regional players inflating the ‘other’ category in India.

China and India in ITCandor’s peripherals forecast There are many analyst companies who believe that emerging country markets will grow substantially faster than those in mature countries; however, while we do believe that both China and India will experience stronger demand, neither will be insulated from interference from world economic crisis (as we saw during the credit crunch) or the challenges of the peripherals market overall. We’ve plotted the quarterly revenues of peripherals suppliers in Figure 12, which shows China and India separately. For the time being China is significantly ahead of India, although recent growth rates in India have been stronger. As in the world market we believe the strong fourth quarter seasonality of sales will remain with us throughout the forecast period. Both India and China were deeply affected by the credit crunch, following the world trends in decline closely (see Figure 13). However both have seen stronger growth during the recovery, which we expect to continue in the future. We

shown in Figure 9. We notice that there are a larger proportion of ‘other’ vendors here – typical of many other ITC submarkets in that country.

The peripherals market in India was worth $2 billion in 2010 India is a small, but rapidly growing market for peripherals. We show the revenue of leading vendors in Figure 10. In total the market was worth USD2.0 billion in 2010, having grown 14% in the year. Canon leads the market here ahead of Dell, both of whom are followed closely by HP. We show the development of revenues from peripherals for leading vendors in Figure 10. The smaller size of the Indian market and lower market September 2011 | www.recyclingtimes.com.cn

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Market Data expect India to offer slightly stronger growth than China in 2011, with the positions reversed in 2012 and subsequent years.

Some conclusions The Peripherals market is an important part of the ITC market and very interesting in being lead by Asia in terms of spending. As you have seen we expect both China and India to offer stronger growth opportunities over the next few years. While the overall market expands through digitisation of analogue processes and contracts due to the increasing need for users to print documents due to improving displays, there

is still good growth opportunity in emerging countries where users and businesses are able to buy printers for the first time. We continue to focus on the Peripherals market as one of the key elements of the ITC market. As you can see we’ve segmented the market by country, supplier and user purchasing type. We’re also building more detail – adding units and Peripheral type to the mix, in order to help our customers use our data and forecasts within their business planning activities. If you are a Peripherals supplier with an interest in our support for your processes, please contact us for more information.

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Market Data

InfoTrends’ new report in BRIC and Western Europe By InfoTrends InfoTrends has released two reports that investigate willingness, attitudes and purchase behaviors of IT decisionmakers in BRIC (Brazil, Russia, India, and China) and Western European regions. The BRIC report indicates that over half of the respondents in Brazil, India and China were confident about their businesses in the next 12 months. Russian respondents were the most likely to expect the coming year would be the same, but InfoTrends also considers this a positive given the uplift the Russian economy shown in the past 12 months as a result of the surge in global oil prices. This newfound business confidence is leading respondents to consider investing more seriously. The top two reasons for purchasing a new device were business expansion or a desire for better capabilities. Jon Reardon, Group Director at InfoTrends, said ‘As bottom lines continue to improve, businesses will become more open to investing in new document and imaging technologies. As these countries rebuild themselves, businesses will likely gravitate toward competitively-priced equipment, supplies, and solutions with value-added features that increase efficiency. The emerging market economies are home to

Figure 1: How confident are you about the business prospects in the coming year?

Figure 2: What was the primary reason for acquiring your most recent printer or multifunctional device?

significant numbers of potential customers. Vendors seeking to expand in the BRIC markets should focus on the cuttingedge, best-in-class features of their printers and MFPs to encourage purchases’. The report, ‘Market Pulse: Western Europe’, tracking the attitudes and purchase behaviors of IT decisionmakers in Western Europe, shows that over two-thirds of respondents consider ‘green’ initiatives a top priority for their organizations. ‘Vendors and suppliers of environmentally responsible equipment, supplies, and services should aggressively promote their initiatives because environmental consciousness is an important consideration for many organizations’, commented Reardon. When asked about important environmental issues, respondents most commonly cited the use of recycled/ certified paper. ‘Paper manufacturers should take note of this and ensure that their packages are clearly labeled with any environmental certifications since these certifications may influence the buying decision.’ The Market Pulse: BRIC, as well as Western Europe, is part of the Market Pulse report series.

InfoTrends InfoTrends is the leading worldwide market research and strategic consulting firm for the digital imaging and document solutions industry. We provide research, analysis, forecasts, and advice to help clients understand market trends, identify opportunities, and develop strategies to grow their businesses. Visit www.infotrends.com or contact Jason Russell at jason_russell@infotrends.com for more information.

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Market Data

Lyra report brings positive news for print industry By Lyra Research Worldwide forecast for inkjet printers and AIOs

The report on inkjet printers and all-in-ones (AIOs) indicates the inkjet market is working its way out of the recession and showing a strong rebound trend that will last until 2015. The AIOs will be the major driving force of shipment growth for the inkjet market. Overall shipments of AIOs will increase from 60 million units in 2009 to 80 million in 2015. The report also analyzed some key factors that affected the inkjet market like the popularity of WiFi, growth in emerging regions and printing from mobile devices. Up-trend in color laser market

Shipments of single-function color laser printers bounced back in 2010 after a decline in 2009. The color laser printer market will continue to improve as vendors develop products, pricing strategies and applications that allow SMB to produce very short run color print jobs in-house. However, advances in inkjet technology and business-class inkjets will continue to threaten this market. Unit shipments of SOHO and small workgroup color lasers increased in 2010 to about 2.3 million units comparing with 2.1 million in 2009. The unit sales grew in 2010, based largely on a good replacement market. Photos online surpass print at home

The number of prints ordered online (13.5 billion) exceeded the number printed at home (13.4 billion) for the first time in 2010. The increased purchasing and use of digital cameras and camera phones is driving consumer photographic activity to new levels. Consumer digital photo printing continues to shift away from home printing to retail and online outlets. The volume of photo prints ordered online and in-store is increasing, while the volume of photos printed at home remains stagnant.

Lyra Research Lyra collaborates with imaging industry decision makers worldwide, enabling clients to strengthen their market position and achieve profitable growth. Lyraâ&#x20AC;&#x2122;s analysts and editors help clients devise and implement creative solutions to business challenges, arming them with intelligence, strategic and tactical advice, news and analysis, and market forecasts. Visit www.lyra.com or contact Tom Sandock at 617-454-2621 or tsandock@lyra.com for more information.

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Market Data

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Tech Zone

Remanufacturing the Brother HL 3040 series toner cartridges TN-210 color toner cartridges By Mike Josiah and the Technical Staff at Uninet Imaging The Brother HL-3040 printer engine is based on a new 17ppm black and color, 2400 x 600 DPI color LED engine. The machines come standard with 32Mb expandable to 512Mb of memory, and all run off a 300 MHz processor. With print speeds of 17ppm and a list price starting at $299.00, these machines are becoming very popular. LED printers use an LED Array instead of a laser/scanner unit to print. This will be explained in the theory section below. The toner cartridges do not have a reset chip on them, but do have a reset gear that must be positioned properly for the machine to accept it as a new cartridge. The starter cartridges that initially came with new printers do not come with a rest gear. A new gear can be added and the starter cartridge made into a full TN210 cartridge. The proper reset positions of the gear will be covered later in this instruction. Figures 1, 2 and 3 show the new toner detection system and the developer bias voltages when a new cartridge is installed. When the printer senses a new toner cartridge, the bias voltage is set to a high voltage. As the cartridge is used, the bias voltage is reduced gradually down to a lower voltage. This process is necessary because according to Brother, a new toner cartridge has a tendency to print light. As the cartridge is used, the density increases (Lower voltage = higher density). To keep the density level even throughout its life, the density bias voltage is reduced accordingly. (See Figure #3) Each time a new cartridge is installed, the reset gear (Figure #1) engages the gear train. The rib on the reset gear pushes down on the new toner sensor. The bias voltage is then reset, and the cartridge page count is reset to zero. While the cartridge yield is stated in pages printed, it actually is based on the revolutions of the developer roller. The larger the run, the better the yield. There are roller cycles for every print job. There is the warmup cycle, color registration cycle, developer bias cycle etc. As these cycles are only run once per job, the bigger the print job, the better the yield. When the printer is in a monochrome print mode VS a color print mode, the C, M, and Y cartridge developer rollers are dis-engaged so that only the black developer roller has any revolutions. The drum unit is new as well; Part # DR-210CL and is rated for 15,000 pages. This unit has 4 separate drums laid out in line. It will be covered in a future article.

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â&#x2013;˛ Figure 1

â&#x2013;˛ Figure 2

â&#x2013;˛ Figure 3

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Tech Zone Current machines released so far are:

HL-3040CN HL-3050CN HL-3070CW The toner cartridges are:

TN210BK 2,200 pages TN210C 1,400 pages TN210M 1,400 pages TN210Y 1,400 pages If you’re familiar with Brother cartridges, you know they do not work like other manufacturers cartridges. This series of printers is no exception. Because of that, we will cover the printing theory here. Figure 4 shows a broad overview of the printing process and the component locations. As you can see these machines use a single pass type system. Figure 5 is a simple diagram that shows the 6 basic steps in the printing process. In the first stage, the Primary Corona Wire places a uniform negative 700VDC voltage on the Corona wire grid which then charges the OPC drum surface. The amount of the negative DC voltage placed on the drum is controlled by the printer’s intensity setting. See Figure 6.

▲ Figure 6

▲ Figure 7

▲ Figure 4

▲ Figure 8

▲ Figure 5

While most manufactures have switched over their production to PCR’s to eliminate ozone health issues, Brother states that the amount of ozone expelled from the printer is less than 3.0 mg/h and therefore not harmful to the human body and that applicable safety standards have been complied with. In the second stage, each of the 4 color LED arrays (4992 LED’s) fire into a focusing lens (called the lens array). The beam then strikes the drums surface, reducing the negative charge and leaving a latent electrostatic image on the drum. The areas where the LED light did not strike the drum will retain the higher negative charge. Figure 7 shows an LED assembly Figure 8 shows how they work. The third or developing stage is where the toner is developed on the drum by the developing section (or supply chamber), which contains the September 2011 | www.recyclingtimes.com.cn

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Tech Zone toner particles. The development stage is actually made up of two steps: toner charging, and the actual development. In the toner charging stage, the foam feed roller brings the toner to the developer roller. The developer roller has a charge placed on it based on the density setting AND the amount of pages printed as set by the reset gear. The doctor blade controls the amount of toner, on the roller. As the LED light exposed areas of the OPC Drum approach the developer roller, the toner particles are attracted to the drum’s surface due to the opposite voltage potentials of the toner, and laser exposed areas of the OPC drum. See Figures 9 & 10 The fourth stage is the transfer stage. In the transfer stage the transfer roller which is located directly opposite each OPC drum, places a positive DC bias charge on the back of the Image Transfer Belt. Each toner cartridge has a separate transfer charge roller. The image is transferred from the drum directly to the paper. This process is repeated for each color cartridge in the following order: Black, Yellow, magenta, and cyan. See Figure 11 Figure 12 shows how the different basic colors are stacked to get different colors. After the transfer takes place, the printer turns on a set of LED lamps that irradiate the drums surface to keep the surface potential constant. This step helps eliminate ghost images. In the fifth stage, the image is then fused onto the paper by the fuser assembly. The fuser Assembly is comprised of the upper heating roller and lower pressure roller. The lower pressure roller presses the page up into the upper heating roller which then melts the toner into the paper. This heating assembly consists of a hard metal coated roller with a halogen lamp inside. See Figure 13 The sixth stage is where the drum is cleaned. The drum is cleaned after the image is transferred to the paper by a cleaning roller. this roller uses a DC voltage to attract the residual toner off the drum. After the cleaning roller has cleaned the drum, the Dc potential is raised and the toner is then transferred back to the drum, where it is then transferred to the

▲ Figure 9

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▲ Figure 10

▲ Figure 11

▲ Figure 12

▲ Figure 13

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Tech Zone image transfer belt. The waste tone is then cleaned off the belt by the belt cleaning roller, and stored in the belt waste chamber. See Figure 14. While this is taking place, the developer roller is moved away from the drum so that it is not contaminated by the waste toner. This cleaning system while somewhat similar to other brother systems is different in that none of the waste toner is recycled back into the new toner supply. How to run test pages, Printer trouble shooting as well as common cartridge problems will be covered at the end of this article.

▲ Figure 14

Required Supplies

Required Tools

• Brother HL-3040 Toner: Choose the correct color and gram weight for your cartridge • Reset gear for the starter cartridge (See text) • Lint free cotton cloths • Toner magnet cloths

• Toner approved vacuum. • Phillips Head Screwdriver • Small Common Screwdriver • Needle nose pliers

With the handle facing you, remove the 2 screws on the left end cap. See

step >

Va c u u m t h e e x t e r i o r o f t h e cartridge. Be careful not to damage the developer roller as it is exposed.

Remove the four gears and reset spring as shown. See Figure 20.

Figure 17.

step >

Remove the fill plug from the toner cartridge. Dump the remaining toner and vacuum/blow out the cartridge. There will probably be a label over the fill plug. It comes off with a little alcohol and a lint free cloth or cotton swab. See Figures 15 & 16

Press in on the tab shown and carefully pry up and remove the end cap. See Figures 18 & 19

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Tech Zone

step >

Vacuum/blow the doctor blade. We do not recommend that the doctor blade be removed as the developer roller felt seals will be disturbed. Once a new blade is available, great care will have to be taken not to tear the seals causing a leak. The doctor blade can be easily cleaned by blowing the excess toner off, and wiping down with a lint free cloth. Be very careful not to leave any lint behind and do not use any chemicals to clean it! Gently pry off the white bushing on the opposite side of the developer roller. Be careful not to lose the spring! See Figure 25. step >

step >

Prey off the developer roller bushing. See Figure 21.

step >

Inspect the magnetic roller felts. If they are compressed, (shiny) gently rough them up with a small screwdriver. See Figure 30.

Remove the E-ring and developer roller gear. See Figure 22. step >

Clean the developer roller with a lint free cloth. Do not use any chemicals to clean the roller. A dry, clean, lint free cloth will work fine.

Remove the two remaining small white gears. See Figure 23.

Remove the developer roller. See Figure 28.

Carefully vacuum/blow the cartridge clean. Use only low pressure air! (High pressure air can cause leaks in the seals). Be sure to rotate the foam feed roller so it is fully cleaned. See Figure 29. step >

step >

Move the white plastic locking tab on the right side of the developer roller to the up position. See Figure 24.

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Re-install the developer roller long shaft side to the gear side, and white lock pointing up. Turn the lock towards the doctor blade until it locks in place. See Figures 31 & 32. step >

step >

Remove the screw and end cap for the developer roller. See Figures 26 & 27.

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Set the reset gear and spring as shown. The tail of the spring fits into a notch at the base of the gear. Starter cartridges do not come with this gear, but it can be added and the starter cartridge use as a full TN-210. See Figure 37.

Fill the cartridge with the appropriate color and amount of Brother HL-3040 Toner. See Figure 40. step >

Install the opposite side end cap and screw. See Figure 33.

step >

Tech Zone

26 step >

step >

Install the spring and bushing on the non gear side of the roller. Make sure the bushing moves freely. See Figure 34.

step >

Install the developer roller gear and two small gears located next to it in the order shown. Install the E-ring. See Figure 35.

Wipe the cartridge down to remove any remaining toner dust.

Install the developer roller bushing. See Figure 38.

Install the developer roller cover. This is important as the developer roller is exposed and is easily damaged or contaminated. See Figure 42. step >

step >

Clean the gears, making sure that they have no toner on them. This is a good time to also check the gear shafts to make sure there is enough grease. If the shafts appear dry, or the grease is contaminated with toner, clean the shaft and inside of the gear. Replace the grease with white lithium grease. Install the 3 mid gears. See Figure 36.

Replace the fill plug. See Figure 41.

Install the gear cover plate, and two screws. See Figure 39.

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Tech Zone Printing Test Pages

Repetitive Defect Chart

Printer Setting pages:

Developer roller

31.0mm

OPC Drum

94.0mm

Upper fuser roller

78.0mm

Lower Pressure roller

78.0mm

Press the OK button 3 times while the printer is in the READY state. The printer will show â&#x20AC;&#x153;Print Settings/printingâ&#x20AC;? on the LCD. The HL-3040 will run 3-4 pages depending on the configuration. Machine Trouble shooting

All the machine error codes are in plain English so there is no need to go into them here.

Mike Josiah Mike Josiah is the East Coast Technical Director at Uninet Imaging. A global distributor of toner, OPC drums, wiper blades and other supplies. An industry veteran since 1987, Mike is a member of ASTM committee F.05, the STMC Technician Certification Committee as well as an STMC trainer. He regularly contributes articles and teaches seminars at association meetings and trade shows.

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Tech Zone

Global Remanufacturing Industry General Assembly October 12, 2011, Zhuhai, China The best opportunity to learn about the industry On October 12, the second Global Remanufacturing Industry General Assembly(GRIGA) will again be hosted in Zhuhai, following the roaring success of its first edition. Representatives from regional and international associations for the industry, publishers and industry elites from China, Europe, India, Japan, Russia and USA presented at this charter event of GRIGA in 2011. Right now, GRIGA offers the best opportunity for you to learn about the industry trends and developments. Know your industry, and speak for your industry.

www.visitremax.com.cn

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CIFEX | RemaxAsia 13-15 Oct 2011

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Zhuhai China

Why you can't miss CIFEX|RemaxAsia Expo 2011 huhai China

Tech Zone

www.visitremax.com.cn

The largest event for the printer supplies industry CIFEX|RemaxAsia Expo is the biggest and most effective trade show for the printer consumables industry. As such it is the year's most important event and can't be missed.

The largest event for the printer supplies industry CIFEX|RemaxAsia Expo is the largest event for the printer supplies industry. It's estimated that over 400 companies will exhibit at the 2011 show and more than 10,000 visitors from all over the world will also gather there. Visiting the largest show in the world is always going to make your trip to China more worthwhile.

The right place CIFEX|RemaxAsia Expo is a great show, held in Zhuhai, the World Capital of Printer Consumables. In one hour, you can reach any of the 300-plus factories in Zhuhai; and in 2.5 hours, you can reach more than 600 factories in the Pear River Delta. You can take tours to local factories for more secure business deals.

CIFEX|RemaxAsia Expo October 13-15 Zhuhai China www.visitremax.com.cn

The right time The next CIFEX|RemaxAsia Expo date â&#x20AC;&#x201C; October 13-15, 2011 â&#x20AC;&#x201C; has been chosen for the convenience of visitors from home and abroad. The China Sourcing Fair operates

October 13-16

Canton Fair

HK Convention and Exhibition

Canton Fair on October 15-19. You can save time and cost by visiting all the shows and

October 15-19(Phase 1)

Guangzhou Canton Fair Hall

www.cantonfair.org.cn

between October 12-15, the Hong Kong Electronics Fair on October 13-16 and the

October 12-15

CIFEX|RemaxAsia Expo 2011 in the same week!

The best opportunity to learn about the industry On October 12, the second Global Remanufacturing Industry General Assembly (GRIGA) will again be hosted in Zhuhai, following the roaring success of its first edition. Representatives from regional and international associations for the industry, publishers and industry elites from China, Europe, India, Japan, Russia and USA presented at this charter event of GRIGA in 2010. Right now, GRIGA offers the best opportunity for you to learn about the industry trends and developments.

For more information, please visit www.visitremax.com.cn, or contact: September 2011 1 www.recyclingtimes.com.cn | Joy Ho Tel: +86 756 3959281 Fax: +86 756 3220717 E-mail: mktas@therecycler.com.cn