Epson has slashed its profit forcasts by 50% following poor sales of printers. The downturn in the market could also affect HP.

Epson the world’s second- biggest printer maker has cut its full-year profit forecast by 50 percent because of falling prices for printers and liquid-crystal displays. Net income is estimated at 22 billion yen (US$197 million) in the year ending March 31, compared with the previous forecast of 44 billion yen, the Nagano prefecture, Japan-based company said  in a statemnent to the Tokyo Stock Exchange. That compares with a 55.7 billion yen profit a year earlier.

The company also cut its sales estimate 1.3 percent to 1.618 trillion yen. The company had 1.48 trillion sales a year earlier.

Falling prices for inkjet printers, mainly in Europe, are cutting into profit as lower-priced printers account for more of revenue, the company said. In the second half starting Oct. 1, sales of small LCDs used in projectors and LCD rear-projection televisions are expected to fall short of forecasts