Will Dell and Samsung Get Hitched?

by Betsy Huntingdon
Printer Industry Analyst

Could Dell be courting another printer manufacturer to supply Dell-branded products? In recent months, Dell has been floating rumors that it is planning to launch a low-end color laser to round out its portfolio. Its monochrome lineup, the P1500, S2500, and M5200N are re-badged Lexmark E323, T420d (without the duplexing), and the T630N, respectively. However, Lexmark has not produced a low-end color laser since the Hitachi driven c720 was launched in March 2001. The c720 is not a viable choice for Dell because of its very large footprint and clunky operation.

So, where could Dell get a brand-new, small, sexy, color laser to be the latest addition to the Dell family? After the nasty breakup last year, HP certainly won't flirt with Dell, and while Oki Data and Minolta-QMS already have a history of OEMing their products (Oki to Xerox and Minolta-QMS to Epson overseas with the 2300DL), Dell may want the new kid on the block for a unique competitive offering. Consumers might not bother to order a Dell-branded product that they just saw on the shelf at CompUSA as an Oki or Minolta-QMS. The Lexmark products Dell currently re-brands do not appear in retail.

How about Samsung? Samsung has been aggressively releasing innovative products and it has a reputation for well-designed, economical electronics. With its recent OEM agreement with HP for inkjet cartridges, Samsung is demonstrating that it wants to broaden its printer lineup and global reach. Moreover, Samsung could be just as enamored with Dell - and willing to give a good price - as a way to introduce its product in an established distribution channel. And, most importantly, it is the latest printer vendor to announce an upcoming low-end color laser printer.

The Samsung CLP-500 was shown at the DigitALL Inspiration 2003 product showcase in New York the week of September 15th despite being still under development. It is slated for release by the end of the year. Pricing has not been decided but, in order to compete against or even to undercut the $699 Minolta-QMS 2300W ($599 at Costco), Samsung will likely shoot for the $599-$799 range. If Dell decides to brand this printer, it will certainly be sold as the price leader for the low-end color laser market. If Dell brands the CLP-500 and sells it for $599 or less, it will compete most favorably against the $699 HP CLJ1500L (after $100 mail-in rebate), the $699 Minolta-QMS 2300W, and the $799 Oki Data 5100n, unless these manufacturers implement additional rebates or price drops.

How will the Samsung CLP-500 compete performance-wise against the existing machines? It can definitely hold its own. The CLP-500 will have four configurations for added flexibility. Two will be host-based and two will be PDL. It will have standard duplexing on all versions - the other three manufacturers' products do not - and networking on the PDL models - only the Oki has networking standard. The mono print speed is 21ppm and the color is 5ppm - both the HP and the Minolta-QMS are 16/4ppm, while the LED based Oki has the definite advantage at 20/12ppm. The costs per page are very similar to the other low-end color laser products: 2.1 cents mono and 11.3 cents color. It has a built-in LCD status monitor and it runs at a quiet 48 decibels.

The CLP-500 is a logical choice for Dell's new color laser. It is nicely featured, well-designed, economical in both purchase price and operating costs, and Samsung could use a strong partner in the U.S. Dell's direct distribution model will keep Samsung off the crowded retail shelves. Additionally, the Samsung press release stated that the CLP-500 is designed to accommodate the growing demand for color lasers in the SOHO segment - a key Dell market. ARS is waiting for its invitation to the wedding.

Top