Dell’s next step: Selling printers
ROUND ROCK, TEXAS –
Having already diversified into the storage and switch markets, Dell is
taking its direct sales approach in yet another new direction: printers.
Last week the company unveiled four Dell-branded printers, all made by Lexmark,
for consumer and workgroup use. The company also launched a program for users
to buy ink and toner cartridges from the Dell Web site.
While analysts say
the decision to enter the printer business is a good one for Dell, they believe
it will take some time before the leading PC-maker will gain inroads into that
highly competitive market.
“It’s a
long-term play. It’s a big trial, and Dell is taking a very measured
approach,” says Peter Grant, principal analyst at Gartner.
Grant says the printer market historically has been about innovation, and
companies such as market leader HP hold hundreds of printing and imaging
patents. Dell, meanwhile, is banking on its customer service.
Tim Peters, vice president and general manager of Dell Imaging and Printing,
says printer software that alerts users to low ink levels and directs them to
the Dell Web site and the exact refill they need is just one way that the
company is setting itself apart.
Dell also offers 24-7 toll-free tech support and a base warranty with its
workgroup printer that includes next-day on-site maintenance.
Analysts say the idea is to bundle printers with Dell’s other products and
create an installed base that will bring Dell recurring, higher-margin revenue
from the printing supplies business.
David Bobzien, regional technology manager at commercial real estate firm
Colliers International in Seattle, says he wouldn’t hesitate to purchase a Dell
printer. Bobzien uses desktops, notebooks, servers and enterprise switches from
Dell.
“Are they positioned to compete with companies
like HP? In time. As with their switches, it simply takes a little time, word
of mouth, and things will fall in place,” Bobzien says