Innovators vs Copiers: HP vs Dell

eaglemoon writes ""The days of engineering-led technology companies are coming to an end," Mr. Dell declared. The NY Times outlines a modern version of a classic innovation theory. Who gets to win in the marketplace - the innovators who invest in R&D like crazy or those that just take cost out of standard products? The current fight between Dell and HP over the printer business is a great natural experiment in verifying this theory." The article does a good job of stating what the real contest is - it's the different theories of corporate structure that's being tested.

Comments

Dell printers...??!

[adrew]

Dell doesn't design its own printers! They're simply run-of-the-mill Lexmark units with a Dell logo. But here's the shady part. The Dell printers are modified so that only the special Dell cartridges fit. The Lexmark cartridges had the same pin configuration, but the Dell cartridge holders are shaped a bit differently. If the cheaper Lexmark (or generic) cart is modified a little bit, they work just fine.

I have a laser printer--but Canon seems to be the best deal in inkjets right now. Black carts for most of their printers are only like $7.

Re:When you're a commodity-oriented company...

[bandrzej]

Exactly! I was in a vendor meeting with Dell, and they clearly stated they make Intel, HP, and all the other manufacturers do the R&D...then after a product has been on the market for a while, they take it, partner with that company to get its product, and Dell-ify it with their own R&D. That is *exactly* what happen with Lexmark and the "Dell" printers. All of Dell's printers are manufactured by Lexmark, just different requirements and rebranded.