Tuesday, April 1, 2003
Dell plans to unveil its new line of printers, manufactured by Lexmark International Inc. Dell hopes to drive down prices in the printer market, just as it did with personal computers.
Using its direct business model, Dell will bypass retailers and sell its printers directly to customers and corporations. But the direct business model could be a disadvantage in selling ink refills, which many businesses and consumers buy in stores as soon as the cartridges run dry.
To solve that issue, Dell created special software that prompts the users when ink is running low. Users can click on a button to go straight to the Dell Web site to order another cartridge, along with paper and other supplies. Ink cartridges are the most profitable part of the printer business.
Dell first confirmed that it was planning a printer line last September, and analysts have long speculated that the products would become another way to undercut H-P's prices.
Dell's printer lineup thus far includes a $139 all-in-one printer/fax/copy machine, a $289 laser printer and two high-speed laser printers designed for business use at $499 and $839.
Replacement cartridges will start at $30 for black ink and $75 for laser toner. Dell won't charge extra for shipping.
By: DocMemory
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