For Xerox and Lexmark, OEM Sales Show Weakness

OEM

Lexmark and Xerox, rivals in the document technology space, both reported to financial analysts this week that sales of products they manufacture for other vendors continue to be weak, while sales through the channel of their own, branded products continue to show strength.

Anne Mulcahy, Xerox' chairman and chief executive, told analysts in a conference call after the company posted earnings this week:

And:

And:

Lexmark found itself in a similar situation in its third quarter. Its Chairman and CEO Paul Curlander told financial analysts on a conference call after Lexmark earnings were posted:

(You can sign up to listen to Lexmark's conference call with analysts here.)

Both Lexmark and Xerox (including through its Fuji Xerox joint venture) are OEMs for Dell - which has been reporting its own significantly slowing growth and a drop in profitability. Lexmark has listed Dell as one of its biggest customers. At the same time, both Lexmark and Xerox are reporting growth and strength in their branded businesses.