HP tears up Dell printer contract

Hostilities declared

HP is ending its printer reseller agreement with Dell. The company says that Dell is to sell own-brand printers and that no purpose is served by dealing direct with its arch-rival.

Of course, Dell can go source HP kit for its corporate accounts through distribution channels. But we can assume that it will lose access to very special pricing and possibly even marketing funds.

In interviews, HP's spin doctors describe the Dell gig as insignificant, amounting to two days sales a year. Is that a calendar year, or a working year (i.e. are we including Saturdays, Sundays and public holidays)?

HP's printer business is worth $20 billion a year, so it seems that we are talking a Dell contract worth
conservatively $100m a year.

And whither Dell? The company has been talking up printers for several months. At the same time it has denied that it is to buy Lexmark, the former IBM printer subsidiary.

All the bets are though that it will white-label Lexmark kit. ®

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