September 30, 2002
Dell Computer Corp. has made it official: it's entering the printer business. Dell will begin selling Lexmark inkjet and laser printers and, more importantly, will sell inkjet and laser refill cartridges directly to its customers.
Hewlett-Packard Co., the world's largest printer manufacturer, severed its partnership with Dell a few months ago, saying it believed that Dell was planning to start its own printer division.
The profit in the printer business is on the supply side -- the inkjet and laser refills -- and Dell is betting that it can leverage its highly efficient direct sales system to sell competitively priced printers and refills profitably.
H-P's recent merger with Compaq has made it "public enemy No. 1" in Dell's eyes, one analyst noted. Since the merger, Dell has also been boasting that it will invade the high-end market for servers and other network gear.
It will probably be early next year before Dell-branded printers begin shipping from Round Rock, Texas. Until then, Dell will continue to sell printers carrying the Lexmark, Epson, Xeror, Brother and Canon brands.
