Dell and HP to slash notebook R&D

Dell and Hewlett-Packard are taking “steps to slash notebook R&D expenditure for 2009, according to sources at Taiwan IC channel distributors,” Hans Wu and Steve Shen report for DIGITIMES.

“Notebook R&D personnel working at Dell and HP are assigned mainly to test the performance and reliability of new parts and components. This work overlaps that performed by R&D staff at ODM makers and so is an area vendors can afford to cut back on without impacting new product development, the sources noted,” Wu and Shen report.

“The cuts in R&D expenditure would allow Dell and HP to reduce operating costs while boosting earnings, the sources added,” Wu and Shen report.

“With the planned cuts, Dell and HP will no longer overwhelmingly control the procurement of parts and components needed for the production of their notebooks and instead will delegate purchasing power to ODM makers, allowing the contract makers to purchase needed parts from the suppliers they chose,” Wu and Shen report.

Full article here.

[Thanks to MacDailyNews Reader “MacVicta” for the heads up.]

MacDailyNews Take: Dell and HP did notebook R&D?

28 Comments

  1. Contract manufacturers picking which components go in the laptop may mean they will pick on the basis of price, not quality, so as to reduce the final price to HP or Dell, and/or to boost their margins.

    Problems maybe looming for the users of those lappies down the road. Nothing more aggravating than hardware that has intermittent faults – a sign of cheap components, especially RAM.

  2. “Dell and HP will no longer overwhelmingly control the procurement of parts and components needed for the production of their notebooks and instead will delegate purchasing power to ODM makers.”

    Bad move. They’re basically giving up quality control and trusting a third party to deliver top notch goods. Sure, if the third party scimps, they can go to another third party, but the damage to their brand will already be done.

  3. So let me get this strait their R&D;will now consist of calling a Box assembler in Taiwan and saying build me a laptop with a 15″ LCD, throw in a processor Video Chip and HD, slap my label on it and let me know what to call it when I sell it. Oh yah and install Vista and put a copy of XP in the box so they can up\down grade;-)

    Or are they saying the will let go Apple’s engineers? Can they do that without asking Steve?

  4. Actually, this is a common thing to do in tough times. Especially when you have a competitor (Apple) who does invest in R&D;. Wait for them to come to market then copy their product. You’ll have a lag time to market yourself, but when you can hype product differentiation (Windows vs. Mac OS X, corporate contract requirements, etc) you’ll still do OK.

  5. This is a really bad decision given the quality problems that even companies like Foxconn have with the MacBook Pro. I have a two-year old MBP built in China with a non-functional CD/DVD drive, automatic double-clicking trackpad mouse, and a battery-charging motherboard that never worked right. I now own an external CD drive, a mouse, and an external battery charger. Never buy a Mac without an AppleCare contract!

  6. “Notebook R&D;personnel working at Dell and HP are assigned mainly to test the performance and reliability of new parts and components.”

    my god, that is what R&D;means to them?!?

    the creativity fairly drips off those companies…….

  7. @Paul Johnson…

    If any of those issues happened in the first year of ownership, Apple would have been more than happy to fix those issues.

    All computers come with a 1 year warrantee, and offer extended service contracts for a bit extra. Get over it.

  8. “Paul Johnson” is just another of MANY promulgators of FUD, lies, disinformation, misrepresentation, and propaganda from the likes of Dell, MS, HP, Gateway, Acer, and the like. Because no one who posts here has to provide any “bona fides” of his past or present experiences, “Paul” assumes we will take him at his word. HA!

    Out of 100 people you might meet at any given carnival or flea market, how many would you trust to give you sound financial or technical advice upon first meeting them? NONE! Same thing here. “Paul” is just another huckster trying to feel better about himself and his poor PC choices by touting unverifiable reports of Apple failures.

    As Bill the Cat would say, “PHHHHHTTTTT!” I don’t believe a word you say, “Paul.”

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