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PRINTERS PROVE POPULAR FOR DELL
Dell has shipped 2.8 million printers so far this year, making the devices the fastest-growing product in the company’s history.The company has shipped 10 million printers since entering the market in 2003, Chief Executive Officer Kevin Rollins told shareholders today at a meeting in Austin, Texas. Dell shipped 2 million printers in its first year and 5.2 million in 2004.
The growth underlines Dell’s progress in taking market share away from leader Hewlett-Packard Co. Rollins, who took over as CEO from founder Michael Dell a year ago, repeated his prediction that Dell will ship 7.5 million printers this year. Rollins is counting on printers, along with notebook PCs, servers, storage devices and televisions, to expand sales to $80 billion in four years as sales of desktop PCs slow.
The company overtook Palo Alto, California-based Hewlett- Packard as the top PC maker last year by undercutting prices, and Rollins plans to use that strategy to expand sales in printers.
Dell won’t say how many printers the company sells and how many it gives away free with PCs. The company had $1.3 billion in printer sales last year. Hewlett-Packard, which gets more than two- thirds of its profit from printing products, plans to ship about 50 million printers this year.
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