Lexmark Fares Poorly in Warranty Rankings
In the first nine months of 2004, Lexmark International’s warranty claims made up 8.3 percent of total product sales raising a red flag on the quality of its products. The company is on target to once again fare poorly in full year rankings. For the full year 2003, Lexmark’s warranty claims made up nearly 10 percent of its product sales, pushing the company to the top of the list of the “Top 25 Warranty Spenders” listed in Warranty Week. By comparison, Dell, Gateway, Hewlett-Packard and IBM warranty claim rates as a percent of sales were between 2 percent to 4 percent both in the first nine months of 2004 and for full year 2003. Remember our e-blast of their printers that were recalled by the CPSC?