Dell Makes Multiple OEM Deals

More than happy with its decision in 2002 to move to private labeling printers from Lexmark (it tried to do the deal with HP, but HP didn’t want to dilute its brand), Dell has announced a series of new OEM deals with a variety of printing and imaging vendors.  They include Kodak, Samsung, and Xerox International Partners (a joint venture of Xerox and Fuji Xerox).

While HP has hinted that Dell is less than happy with its Lexmark partnership, Michael Dell made it clear that these new arrangements were in addition to, not a replacement for, the Lexmark partnership, which would remain intact.

Dell declined to indicate just what types of products it might add to its line or when, but we got the feeling that we’d start to hear more about these relationships pretty soon.

Sunil Gupta, XIP president and chief executive officer was clearly pleased that this new relationship (he says XIP has a dozen or so such OEM relationships, all private label), couldn’t comment at all about products or timing, but he did admit that there might be new service opportunities for Xerox as part of the Dell relationship.  Xerox also noted that XIP is 51% owned by Xerox, so revenues of the partnership flow to the corporation.

Think of the possibilities:

  • Digital copiers at any and every price point imaginable.  

  • Multi-function systems, based on both ink-jet and laser technology.

  • Higher capability laser printers, designed for group usage in corporate settings, very much in line with Dell’s ambitions to do more business higher up the feeding chain.

  • Color laser printers.

We’d guess that with this kind of portfolio to choose from, Dell is planning to give HP a very good run for the money in 2004.  

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