Xerox abandons SOHO sector

Loss-making, non-core

Xerox, the blue chip-to-pauper imaging biz, is leaving the retail sector. The debt-driven company says this is consistent with stated aim of focusing on "core growth opportunities".

The move will also "generate significant cash savings and improved earnings". In Q1, this year the company's SOHO (small office/home office) sales were $139m (three per cent of group revenues) and a whopping pre-tax loss of $82m.

The company forecasts a similar loss in Q2. Xerox will wind down its personal inkjet and copier products, sold mostly through retail, over the next six months.

This will help its inventory position - but the length of withdrawal will do nothing for average selling prices - or keenness for retailers and disties to pay up in a hurry.

It is also very nice news for HP and Canon. ®