Lexmark CEO Touts New Inkjets, Defends Dell Relationship

In a presentation at the Sanford C. Bernstein and Co. Strategic Decisions Conference in New York, Curlander said Lexington, Ky.-based Lexmark maintains a 21.5 percent global share in the inkjet market, second only to Hewlett-Packard's 40.5 percent share.

To help grow its market presence, Lexmark on Thursday unveiled two low-end products, geared primarily for the consumer space: the Lexmark X2350 All-In-One multifunction device, which costs $69 after a rebate, and the Lexmark Z735 color printer, which runs $49.99 after a rebate.

Though low-price hardware and the price-aggressive market helped cause Lexmark to miss Wall Street analysts' financial expectations in its most recent fiscal quarter, Curlander said the company has been able to outperform most competitors in recent years because of its non-hardware business.

"The reason Lexmark is doing better than other companies in general is our business model," he said. "We're not just selling printers, but importantly we're selling aftermarket supplies, which is the most profitable and consistent portion of our business."

Curlander also defended Lexmark's OEM partnership with Dell, which he said has helped boost his company's market presence.

"I think it's been a good partnership for the two of us. I think we have strengths that complement each other. They are a world-class company and, whenever we work with a world-class company, we learn from them," he said.

"In addition to being a tremendous developer and manufacturer of products, they are a very strong channel into the marketplace," Curlander added about the Dell partnership. "I think that Lexmark's technology is very strong. I've always felt we're underrepresented in the market."