Reuters Market News HP Expects Dell Printers, Ends Dell Partnership
SAN FRANCISCO (Reuters) - Computer and printer maker Hewlett-Packard Co.(NYSE:HWP - News) said on Tuesday that it would quit selling printers and other products to Dell Computer Corp, (Nasdaq:DELL - News) given Dell's intent to come out with its own brand of printers. ADVERTISEMENT
Dell did not comment immediately on the HP deal or the possibility for Dell printers, a recent, persistent rumor. On Monday, No. 2 U.S. printer maker Lexmark International Inc. (NYSE:LXK - News) during a conference call repeatedly shook off questions about a possible Dell deal.
"We had a reseller relationship with Dell and we concluded that the basis for partnership is no longer valid given the company's intent to sell Dell-branded printers," an HP spokeswoman said.
"But customers will probably, or we intend, will continue to demand HP products through Dell and Dell will go through other channels to most likely purchase (them)," she said.
Dell's share of HP printer sales was insignificant, amounting to about two days' worth of HP annual printer sales she said. HP had sent Dell a letter with its decision on Tuesday.
What do you folks make of this move.....I guess it was obvious it was coming....My family has ordered 3 PC's from DELL, and I've never bought a printer from them, so I don't know how big of a deal it is....I'm thinking they might start getting really aggressive pricing a computer "bundle" though that includes a printer for almost FREE to get your hooked on their ink....that could be a big negative for HP if it is successful for DELL.....
I took a tour of HP's Vancouver facility long ago when I helped design in the IR port into the 5MP laser printer.
What amazed me was all the stuff they did nearly 8 yrs ago to lower costs. They actually ship the printers out of the box so they can get more printers into a truck... then assemble the boxes with the protective foam at the destination where they have the foam and boxes shipped by the people that make those...
The cost of shipping printers one-by-one could be huge and one wonders why a customer would have one shipped to his or her home if they can buy them cheaper at Costco or Walmart from HP? They can also get their ink at these stores. On consumables like this, I tend to remember where I get the best price and buy the ink there... Costco for me and ink or LaserJet cartridges.