Channel Best-Sellers: Peripherals

The research firm's Distributor Track, which measures U.S. dollar volume for products sold through certain distributors, including the Global Technology Distribution Council, found that HP logged a 65 percent dollar volume share in the MFP segment last year, slightly down from the 66 percent it registered in 2005. Lexmark, which claimed a 13.1 percent dollar volume share, grew by 2.9 percentage points in a crowded market, more than any other company in the Top 5. Brother, Xerox and Canon rounded out the best-sellers list for this category.

Solution providers say HP's brand recognition is a major force, in addition to its continued investment in the channel. Lexmark, which slumped in 2005 amid a decision to alter its product strategy toward higher-margin hardware, benefited last year from efforts to make its products and programs channel-friendly, they said.

Doug Polkosky, COO of Thomas Computer, an Orlando, Fla.-based solution provider and a partner of both Lexmark and HP, as well as other vendors including Xerox, said HP's brand awareness is helping make it a dominant name in multifunction devices.

Polkosky said Lexmark may have been hurt by its ongoing relationship with Dell. And he said HP has the edge in engaging him as a channel partner. "HP has more feet-on-the-ground support for the local dealer," he said.

Joe Elliot, sales manager at Elliot Services and Peripherals, a Conover, N.C., solution provider that partners with HP and Lexmark, said over the past year Lexmark has made things easier for him. "A lot of the features Lexmark has added to their MFPs, such as security features, PDF-thumb-drive functionality, those features that Lexmark added have probably been the big reasons it's done well," he said. "It's a lot easier for me to work on Lexmarks than HPs," Elliot added. "Lexmark has made it easier and more sales-rep friendly, and given us more incentives to sell Lexmark."

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