Lexmark to stop making inkjet printers

Lexmark is to stop making inkjet printers to focus on its more profitable software and imaging businesses.

According to a report from Reuters, the printer manufacturer will continue to sell laser printers and ink cartridges, and provide technical support for customers of its inkjet printers for the time being.

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Lexmark has already laid off 625 employees employed in its consumer ink business and a further 1,750 employees will lose their jobs over the coming months. It is also selling many of its patents.

The UK arm of the company declined to comment on the report but in a conference call to Reuters, the company's chief executive, Paul Rooke, said: "We plan to continue using part of the free cash flow to accelerate growth in the software business through acquisitions."

The inkjet market has become increasingly competitive as manufacturers slash printer prices in the face of declining demand for the devices. Two years ago Lexmark made a deal with Apple to sell printers in Apple stores. But analyst company IDC has reported that this decline had reached nearly 13 per cent in the second quarter of this year.

Lexmark was never a big player in the inkjet market, with sales far behind competitors, such as HP, Canon and Epson; which combined hold a 90 per cent market share.

So rather than invest further in this sector it has branched out with acquisitions of companies which provide software and services; such as Perceptive Software, Brainware Inc, ISYS Search Software and Nolij Corp.