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September 5, 2008, 9:06 am

Dell looks to sell factories worldwide

By Scott Moritz

Dell (DELL) is getting more serious about trimming costs and is exploring plans to sell its PC manufacturing plants, according to a news report Friday.

Once the leader in the low-inventory, built-to-order model for producing PCs, Dell is now relying more on contract PC makers. As part of that shift, Dell is trying to sell some or all of its manufacturing facilities, according to a report in The Wall Street Journal.

The newspaper, citing anonymous sources, says Dell is looking to sell most or all of its factories within 18 months.

The move comes just over a week after the Round Rock, Tex.-based giant disappointed Wall Street with lower-than-expected profits in the second quarter. The company has struggled to revamp its sales strategy to focus less online orders and more on retail sales in big outlets like Best Buy (BBY). The shift has been costly, however, in terms of marketing and distribution expenses.

Now Dell is looking to contract manufacturers to cut costs and beef up its notebook computer segment.

“We are actively reviewing all aspects of our logistics, supply chain, and manufacturing footprints. This review is focused on identifying efficiencies and cost reduction opportunities,” the company said in a regulatory filing Thursday. The company says it has already sold two facilities, one being a PC production plant in Austin, Tex.

Dell was down 2% in premarket trading Friday.

I just purchsed 3 E6400s for my small business from Dell and couldn’t be happier. Great machines. I own 7 Dell computers at home. I’ve never EVER had to call Dell for support, but if I did I would just have to deal with India like everyone else. Funny, you all talk about HPs. . . their support is in India also.

Someone wrote “Dell is circling the drain” … BAHAHAHAHAHA Dell is FAR FROM circling the drain. You have NO IDEA what you are talking about.

I also love the “Greedy Corporation” comments. Funny, when a company cuts costs so that they don’t have to fire EVEN MORE employees, that comopany is “greedy.” Amazing…..

Posted By Scott, Atlanta, Ga : October 13, 2008 2:05 pm

I guess you can be green when you have outsourced all manufacturing, Have basically no Dell badges.The small support Dell had under it is gone. To all current employee…Jump Ship! Big Blue is sinking

Posted By Mac, Nashville : September 9, 2008 5:48 pm

Dell does not care about its employees or field contractors that they have worked so hard every day and night to make Dell the corporate giant that it appears to be……….Until Dell realizes that excellent field support matters in customer service there days will be numbered in the pc business ………

Posted By Anonymous : September 9, 2008 1:09 am

Wait so what you’re saying is Dell is not actually an Indian company?

Posted By Anonymous : September 9, 2008 12:32 am

Dell is just a typical, greedy corporation selling out their employess and communities. Time to buy a HP.

Posted By Anonymous : September 8, 2008 6:18 pm

Until Dell addresses its overwhelming customer service issues this newest fix will do nothing to help overall profits. The majority of Dell’s customers have revolted and moved on. Dell will have to make a 180 turn in its customer service policies to return to its position in the industry as the leader.

Posted By Paul, Clovis California : September 8, 2008 4:01 pm

If Dell hadn’t blown it with outsourcing customer service the loyal followers would have stayed instead of strayed to other brands with better support. Did Dell gain anything but lose customers in its quest to save money? I think not. We had only Dells, still have one, and are replacing them with other brands. Will not go through that hassle again!!!

Posted By Monica Kooger,Southport,NC : September 8, 2008 2:45 pm

Dell is circleing the bowl–its only a matter of time now.they have dumped on too many people.Long time customers such as myself are leaving in droves.C-ya Dell,wouldnt want to be ya.LOL

Posted By Mark,Orlando,Fl : September 6, 2008 5:15 pm

Sounds like Dell is going “fabless” as it were. One other plus I suppose is it will make it easier for Dell to paint themselves green since all that messy, power-hungry, manufacturing will be on someone else’s books

Posted By rick, sunnyvale, ca : September 5, 2008 11:33 am

Saddness. I think their appeal was in their online ordered, in-house custom built computers. I hope this report is unfounded, I don’t think I could be bothered to buy another comes as is PC from an outlet, whatever cost savings they have planned aside.

Posted By Kirk, San Antonio Texas : September 5, 2008 11:08 am

Dell was an America success. Now it is a worldwide failure. You can’t outsource customer support to places where if they speak english, some words have no meaning. Ask an Indian what the word credit means. You might even get some Engineer with a British accent. Culturally he still eats with his bare hands and lives in a commune.

Posted By Jon Iscream, Humble Texas : September 5, 2008 10:08 am

Great outsource and loose more jobs.
Amazing why don’t we just outsource ALL jobs and become a 3rd world country.

Unemployment is at an all time high and corporate america wants everyone to work @ minimum wage.

Posted By Anonymous : September 5, 2008 9:41 am
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