Dell Computer Corp. is considering entering at least one facet of the printer business, a move that could be a thorn in the side of the new Hewlett-Packard Co., whose recent merger with Compaq Computer Corp. stripped Dell from its No. 1 PC-maker perch.
The announcement comes from a Wall Street analyst who interviewed Dell founder and Chief Executive Michael Dell last week.
According to Bear Stearns analyst Andrew Neff, Dell’s CEO wants a piece of the recurring revenue that come from the printer ink business, long considered by HP to be the most lucrative part of the company’s business.
“He certainly did not say he was entering the printer business,” Neff said.
Michael Dell never gave a yes or no answer, Neff said, and “danced around” specifics of how the company might get into the printer or ink business–either by buying a printer company such as Lexmark, through an outsourcing deal that would put Dell’s brand name on another company’s printer or through an agreement that would allow Dell to collect some of the ink revenue.
Dell Computer would not comment on Neff’s remarks.
“There’s nothing new to announce,” Dell spokesman Mike Maher said.