Dell dumps HP printers

Dell is to stop selling HP printers in the first of many market adjustments following the HP-Compaq merger.

Traditionally, Dell has sold just HP printers, but HP's dominance in this market has waned in the last few years with the influx of cheaper Japanese models.

Dell CEO and founder Michael Dell said recent moves toward selling Lexmark printers would continue, and added the company is looking into other, Japanese printer manufacturers.

However, while Dell's move reflects this, it is also likely be a result of the HP-Compaq merger, with the direct sales giant reluctant to give such a big competitor any kind of advantage.

Dell made the comments while addressing the Lehman Brothers Semiconductor and Computer Systems Conference in San Francisco, US wires report.

He said the merger of HP and Compaq presents Dell with a compelling opportunity to pick up confused customers.

Dell also said the company has faced a backlash from its customers over Microsoft's proposed changes to its software, which mean that much of Microsoft's software will be rented rather than paid for outright.