Dell starts local printer sales17 December 2004
Computer hardware giant Dell Inc recently announced its entry into the Malaysian printer market with the modest launch of two Dell-branded multifunction inkjet printers.
The Dell Photo All-in-one Printer 922 costs RM377 and is targeted at students and SOHO users. It incorporates a four-colour printer, a 4,800 x 1,200 dpi scanner, and digital copier functions.
The Dell Photo All-in-one Printer 942 costs RM642 and is a higher-end model geared towards photo enthusiasts.
The 942 shares the same features as the 922 but also includes a 2.5in LCD screen, memory card slots and support for PictBridge technology, which allows direct printing from digital cameras.
Both printers include supplies management software which monitors cartridge ink levels and provides a direct link to the Dell website for ordering supplies.
As with all its current products in Malaysia, the Dell printers are only available online via www.dell.com.my.
Despite its modest entry, Dell could shake up the local printer market with its reputation for competitive pricing.
Industry observers often cite the “Dell effect” - when Dell enters a product category or new market, it often spurs price cuts and even price wars among its competitors.
Yasmin Mahmood, general manager of Dell Asia Pacific Sdn Bhd, said the company is confident of being able to compete against market leaders such as Hewlett-Packard, Canon and Epson.
“We’re lowering the initial hardware acquisition costs and the overall cost of printing,” she claimed.
As expected, Yasmin plugged Dell’s direct sales model, which she said benefits customers because it cuts out the middlemen and also offers direct delivery of products to homes.
Yasmin claims Dell printer consumables are 5% to 10% cheaper than those from its competitors.
Like other printer manufacturers Dell is unlikely to profit from the sale of printers, but rather, from the more lucrative sale of consumables instead.
Yasmin also cited the other advantages of buying off the Dell website, including guaranteed genuine cartridges, and next-business-day exchange for printers.
Growing success
Tim Peters, vice-president and general manager of imaging and printing at Dell, reported that revenue from its imaging and printing products are expected to exceed US$1bil (RM3.8bil), and printer sales are expected to exceed five million units this year.
“It is the fastest growing business in Dell history,” he said.
Even in the US market, which Peters described as “highly commoditised,” Dell already has a 17% market share for inkjet printers.
Speaking on consumer buying trends, he notes that “single-function” devices are in decline and buying trends are towards “all-in-one” or multifunction devices.
Another key trend is the prices for multifunction devices which have dropped significantly this year. A number of entry-level multifunction devices are now sold at the same price as inkjet printers were a year ago, Peters noted.
Most Dell printers are actually manufactured by Lexmark International Inc.
In September 2002, Dell entered an agreement with Lexmark to produce Dell-branded printers and supplies.
Source: The Star Online
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