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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: kemble s. matter who wrote (170371)	7/24/2002 7:11:23 PM
From: calgal	Read Replies (3) \| Respond to of 176387

Hi Kemble!! "While he said Dell will still be able to obtain and bundle HP products if customers want them, he also referred to "a variety of other, preferred providers of printers," including Xerox, Lexmark, Canon, Epson and Brother." No comment! :)Leigh HP Cuts Out Dealing with Dell on Printers Wed Jul 24, 1:42 PM ET Jay Lyman, www.NewsFactor.com Computer and printer giant Hewlett-Packard ( NYSE: HPQ - news) said Tuesday that it plans to stop selling printers, scanners and other peripherals to PC maker Dell ( Nasdaq: DELL - news), ending a four-year reseller relationship between the two companies. Palo Alto, California-based HP said the move is a response to Dell's plans to sell its own branded printers. However, analysts credited the move to HP's recent merger with Compaq and a desire to compete against, rather than support, such companies as Dell and IBM ( NYSE: IBM - news). "It signals that HP means business and sees Dell as a competitor," IDC analyst Jennifer Thorwart told NewsFactor. "It's a blatant message [from HP] that, 'We're competing [with Dell].'" Little Effect Thorwart said that while HP makes a significant number of shipments through Dell, its margins on those resold printers are minimal. With its 70 percent share of the printer market, HP has plenty of other places to sell its products, Thorwart added. She noted that Dell will not likely be hurt by the move, as it can still obtain and bundle HP printers as well as go to other suppliers. "It's not going to change any operations significantly for HP or Dell," Thorwart said. Dude, You're Getting into Printers Combined with reports that Dell is signing deals with Asian printer vendors, the announcement from HP indicates that rumors of Dell selling its own branded printers may be accurate, according to analysts. Dell spokesperson Mike Maher told NewsFactor that the company would not respond to the speculation, but he added, "It is interesting and surprising that the mere rumor of us entering the printer business would make [HP] so nervous." HP was unable to respond prior to publication of this article. Cutting Out Customers? Maher said HP's move will have "no material impact" on Austin, Texas-based Dell, but he expressed dismay about HP's intention to make it harder for Dell customers to buy HP printers and other peripherals. "The surprise for us is that HP would make it harder for customers to get their hands on their products," Maher said. "It does change the ease with which our customers are going to be able to avail themselves of HP products." While he said Dell will still be able to obtain and bundle HP products if customers want them, he also referred to "a variety of other, preferred providers of printers," including Xerox, Lexmark, Canon, Epson and Brother. Market Shakeup Thorwart said Dell's effect on the printer market will depend on how the company enters it. Possibilities include bundling Dell-branded printers or selling and lowering the price of such consumables as ink cartridges. While she downplayed the effect of HP's decision on both companies, Thorwart admitted the printer industry could be impacted significantly by Dell's market entry. "The only thing that [HP's stance shows] is that HP believes this is a serious threat," she said. story.news.yahoo.com