<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM XEROX CORPORATION'S 6-30-99 FINANCIAL STATEMENTS AND IS
QUALIFED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000

                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-END>                               JUN-30-1999
<CASH>                                             103
<SECURITIES>                                         0
<RECEIVABLES>                                   16,394
<ALLOWANCES>                                       487
<INVENTORY>                                      3,091
<CURRENT-ASSETS>                                12,482
<PP&E>                                           5,249
<DEPRECIATION>                                   2,882
<TOTAL-ASSETS>                                  28,631
<CURRENT-LIABILITIES>                            7,218
<BONDS>                                         15,513
<PREFERRED-MANDATORY>                              638
<PREFERRED>                                        678
<COMMON>                                           665
<OTHER-SE>                                       3,914
<TOTAL-LIABILITY-AND-EQUITY>                    28,631
<SALES>                                          4,677
<TOTAL-REVENUES>                                 9,162
<CGS>                                            2,154
<TOTAL-COSTS>                                    4,985
<OTHER-EXPENSES>                                 3,050
<LOSS-PROVISION>                                   123
<INTEREST-EXPENSE>                                 405
<INCOME-PRETAX>                                  1,127
<INCOME-TAX>                                       349
<INCOME-CONTINUING>                                791
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       791
<EPS-BASIC>                                       1.16
<EPS-DILUTED>                                     1.09