Dell Rolls Out First Printers; Rivals React

Computerworld - Dell Computer Corp. made its entry into the printer market official last week by rolling out four models, including a pair of machines designed for use by corporate workgroups.
Rivals are responding to Dell's move. Analysts expect Hewlett-Packard Co. this week to introduce a line of printers for small businesses and home users. HP officials didn't return calls seeking comment.
And just one day after Dell's launch, IBM announced a "plug-and-print" wireless LAN adapter to make it easier for companies to hook end users to the printers IBM resells.
Dell was a reseller of HP's printers until last July, when HP ended the deal because of expectations that Dell would enter the market. In September, Dell said it had signed Lexmark International Inc. to make Dell-branded printers.
Dell's models range in price from $139 to $839. They include software that monitors ink consumption and prompts users to order replacement cartridges from Dell. Greg Davis, sales director for Dell's imaging group, said users may buy cartridges from other suppliers. But Dell's cartridges are unique sizes and shapes, so aftermarket vendors won't be able to offer alternatives until they figure out how to reverse-engineer Dell's cartridges.
Dell's printers "will be accepted as good-enough technology" by Dell customers, said Peter Kastner, an analyst at Aberdeen Group Inc. But analyst Peter Grant at Dataquest Inc. said it will be years before Dell has any significant impact on HP's installed base.
Tom Krazit of IDG News Service contributed to this report.

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