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Dell Boosts Printer Business in China
(Comtex Business)BEIJING, Dec 28, 2005 (SinoCast China IT Watch via COMTEX) --Dell Inc. (Dell), the global PC producing magnate, said it had its software and peripherals sales increased 25% year-on-year in China, and more importantly, its color-ink cartridges and selenium drums market shares jumped 50% from last year.
The tycoon launched a CNY999-priced laser printer for China's low-end market this June, presenting the start of a fierce price war with its experienced rivals like Hewlett- Packard (HP), Canon and Epson.
Not long ago a laser printer still cost roughly CNY 1,500, but now Dell's CNY 999 thing, accompanies with its direct sale style, are giving HP and Epson real stimuli.
"For years, customers have told us they are paying too much for printing," said a Dell China official, "We understand their pain, and are focused on changing this business. We are lowering the initial hardware acquisition costs and the overall cost of printing, while greatly simplifying the way customers replenish their supplies."
Dell introduces new imaging and printing devices that slash printing costs for consumers and small businesses. The company also added pricing flexibility to its ink cartridges, taking into consideration that the total cost of printing is a top customer concern.
The Dell Network Laser Printer 1710 is a monochrome laser printer available in a networked version for CNY2,399. With speeds of up to 26 pages per minute (ppm) and 1200 x 1200 dots per inch (dpi) resolution, this printer is an attractive choice for small group and business printing. The 1710 high-capacity toner cartridge, priced at CNY799 for up to 6,000 pages, gives small workgroups and businesses the low total cost of printing.
The Dell Photo All-in-One Printer 922 meets the needs of most consumers and home-office customers by giving them the ability to scan, copy, and print at fast speeds while conserving desk space, and it is available at only CNY1,199. The 922 also creates high-quality borderless photos, and can print in six colors when the optional Dell photo ink cartridge is added.
The new Dell Photo All-in-One printer uses the Dell Supplies Management System, which monitors cartridge and/or paper levels, proactively notifies customers before they run out of their supplies, and provides a direct link to Dell's website for easy reordering. In addition, all Dell printers come with Dell service and support, including 8x5 toll-free technical phone support and one-year Advanced Exchange Service4.
Customers purchasing Dell inkjet printers can choose between high- and standard-capacity ink cartridges, depending on whether they are more concerned with cost per page or cartridge price. Dell's high-capacity color inkjet cartridge for the 922 costs CNY319 while the high-capacity black ink cartridge is priced at CNY219. For customers who prefer a low cartridge price, Dell's standard-capacity black ink cartridge for the 922 is CNY179. Most of the prices are lower than HP's or Epson's.
All Dell personal printers include the Dell Ink or Toner Management Systems, where the systems monitor the level of ink or toner and prompt users to order replacement cartridges online or via phone. Once ordered, cartridges are shipped to the customer at no additional cost, minimizing the time, cost and hassle of buying new cartridges from a retail store.
"It is important that Dell waives its shipping charges and passes its savings from channel margins back to its customers to entice them to buy direct," noted an analyst, "As with any commodity product, especially low-end printers or multifunction printers, price is the underlying factor that drives demand."
Dell has been fighting with HP for years in PC sector, yet their combat in the printer segment only began two years ago. Dell launched its first printer in September 2003, and now it holds 19.9% of the all-in-one printer market and 7.4% of the monochrome printer market in the US.
China is said to have a CNY 2.72 billion printer market, as less than 30% of Chinese PC-equipped families possess printers (that in the US is 90%), and over half of the IT product buyers are families, small and mid-sized businesses and mini offices. The 2004 printer sales volume in China was 7.72 million.
From Beijing Morning Post, Page 1, Tuesday, December 27, 2005
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