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While it's still synonymous with copy machines,
XRX) has moved its core business away from big-ticket printers and progressed to become the world's biggest document management and business services firm. That change may sound subtle, but it's important.
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Printing has become commoditized in the last few years. Print quality has essentially become the same across most major black and white laser printer manufacturers, so Xerox has taken its resources from black and white printing tech and moved it over to areas where its R&D can actually build a better mousetrap. At the same time, services are becoming a much more important part of Xerox's business. Servicing printers historically generates more revenues than the printer's original cost, a fact that provides XRX with sticky recurring revenues. Higher-end professional services, such as document outsourcing, are becoming a more important part of XRX's sales as well.
Xerox still earns a material chunk of its sales through office printers and copiers. But as time progresses, building low-moat office equipment should become a smaller and smaller part of XRX's total revenues. As the economy continues to heat up, so is Xerox's top line in 2013.