Dell dives into printer market
Published: 24 Sep 2002 15:00 BST
Dell Computer has inked an agreement with Lexmark International Group to sell printers.
Dell, fulfilling analyst speculation, said it has reached an agreement to work with the printer maker to create a line of Dell-branded inkjet and laser printers. The companies will also create a line of Dell-branded printer supplies, such as print cartridges. All of the new products will be sold directly to customers.
Financial terms of the deal were not disclosed.
Dell had been widely expected to begin working with Lexmark to bring a line of Dell printers to market.
Under the deal, the companies will start first with an agreement under which Dell will make Lexmark its preferred supplier of printers during the holiday-shopping season.
That means Dell will make Lexmark its lead printer brand, putting it ahead of rivals in PC bundles and likely featuring it in advertisements.
Dell then plans to launch its new Dell-branded printers after the beginning of 2003, the company said.
"It is our intent to have offerings with both (laser and inkjet) technologies," Dell spokesman Jess Blackburn said Tuesday.
Dell is still working on its product plans and will not reveal which models it will introduce first or when.
Dell will aim, however, at offering aggressive prices.
"One would have all the same expectations around these products when we bring them to market" as other Dell products, Blackburn said. "We always try to provide products our customers want at a price that makes it hard to choose someone else."
Dell started discussions with Lexmark in 2002. The company will not say whether it also discussed deals with other printer manufacturers.
Meanwhile, Dell doesn't expect to see a big jump in printer sales volumes. Instead, the company seems to be focused on making printer sales more profitable by lowering costs.
"We sell in the range of about two million-plus printers per year now, selling our suppliers' products. I don't think we're anticipating we're going to have a great leap above that initially," Blackburn said.
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