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zatoicchi
08.09.08, 04:30
It would appear Dell Inc. is looking to sell its computer factories in preference of outsourcing in an attempt to cut expenses. With many of Dell’s competitors, such as HP and Apple, already outsourcing production of many of their own computers, Dell seems to be simply following in suit. According to sources, Dell could be selling most or all of their computer factories within the next 18 months.

Dell currently does outsource part of its manufacturing process for many of its laptops, with just the final assembly taking place at their own factories, such as those in the United States. Although current means of production for Dell’s desktop PCs is considered efficient, falling yearly profits for Dell has forced it to reevaluate its business model to further cut costs. With manufacturing contractors being able to have greater focus on the production process, having greater specialization, and possibly having the use of an offshore labor force, the use of contractors could result in a cost savings. With rising oil prices, transportation costs are increasing as well, making manufacturing a product at fewer locations potentially cheaper. Some believe though that Dell may sell its factories to the same contractors who will continue to produce PCs for Dell.

Dell to Rid Itself of Factories by 2010 (http://www.tomshardware.co.uk/Dell-Offshoring-Factories,news-29111.html)

Aurion
12.09.08, 05:02
LOL I can't believe that :shockkk!: selling was a far crossover for Dell when it used to rule the big market !! maybe as most of it's expensive products colonized market that's why PC suppliers think it's time to cut losses !!

anon
12.09.08, 21:43
It's a good move to cut down on transportation costs and expenses...
But isn't getting rid of all factories a bit drastic?
I mean, what if something happens to one or more of their outsourced points, or they stop working?

Aurion
19.09.08, 21:28
never imagined one day to see such thing comes true at all.....let's suppose this will actually end to happen at last,isn't is kinda greedy to cut shorter wages on those staff ??

anon
19.09.08, 21:41
Maybe, but the company also profits more with higher revenues. It's business stuff, you know :wink:

Aurion
20.09.08, 01:39
LOL,that doesn't amaze me since I do know :tongue: