Dell Enhances Its Printing Portfolio

After launching the world’s thinnest laptop, Dell Inc. (DELL - Analyst Report) has now turned its focus on the printing segment of the company. The company has announced the launch of three new commercial workgroup printers, which the company claims will help businesses of all sizes increase productivity and reduce their total cost of printing. 

The first of these printers is the Dell 5130cdn, which is claimed to be the world’s fastest letter size office color printer with the capacity to generate up to 47 single-sided and 37 double-sided prints per minute, priced at $1,549 in the US. The second is the Dell 7130cdn the company’s first LED-based color printer, which can print tabloid-size, high quality Pantone-approved color prints, for accurate color reproduction, available at a price of $2,799 in US. The third in the series is Dell 3330dn, a black and white performance printer with the ability to print up to 40 letter pages per minute and up to 80,000 pages a month, priced at $599 in the US. 

We believe this is a prudent move by Dell to grab a greater market share of the printer market worldwide, having striking similarity with its greatest competitor Hewlett Packard’s (HPQ - Analyst Report) recent move to revive its printing business. 

First, Dell made aggressive product introductions into the notebook segment by introducing the Inspiration, studio and Adamo series of laptops one after another. The company has now shifted focus to the printer segment. Although things look good for Dell, the newly launched printers may face stiff competition from HP’s competitively priced printers. 

Dell reported decent second quarter results, with revenue and EPS exceeding our estimates. New products, a stronger services business, opportunities in the Electronic Medical Record sector, the smart phone initiative, strong cash flow and a revival in IT spending are factors working in its favor. 

We have a Neutral rating on Dell shares.

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