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"Dell, confirming analyst speculation, said Tuesday it has reached an agreement to work with the Lexington, Ky.-based printer maker to create a line of Dell-branded inkjet and laser printers. The companies will also create a line of Dell-branded printer supplies, such as ink cartridges. All of the new products will be sold directly to customers. Financial terms of the deal were not disclosed. "It is our intent to have offerings with both (laser and inkjet) technologies," Dell spokesman Jess Blackburn said Tuesday.
Since HP dropped Dell as a partner, HP executives have scoffed at Dell's potential entry into the printer market, saying it won't be able to match HP's research and development prowess or its connection with customers.
What effect Dell will have on the printer market isn't immediately clear, analysts said. If Dell can cut prices on ink cartridges, it could force HP to do the same and thus put a big dent in HP's printer-related profit margins. HP counts on so-called printer consumables such as cartridges to help boost its bottom line. In any case, HP isn't taking the Dell threat lightly."