Dell, the world’s largest vendor of personal computers, has dropped UPS from delivering its boxesto homes in the USA, according to The Atlanta Journal newspaper.
In a contract estimated by analysts to be worth $150 million per year, UPS has beenpractically the sole express carrier used by Dell for its PC shipments worldwide, but this ended onApril, the Journal claims.
While the newspaper indicates that UPS is to keep Dell’s international business, it says thecompany is changing to DHL and FedEx for its home market. Dell sells over 20 million computers tothe US market each year, half its worldwide shipments.
“(We) were simply unable to reach an agreement for pricing for renewal of this particularcontract,” UPS spokesman Norman Black is quoted as saying in the article.
This is not the first time Dell has dumped UPS over price negotiations. It did so in favourof FedEx in 2003 only to switch back to the brown vans several months later, said the newspaper.