Beleaguered Windows PC box assembler Dell “is trying to sell its computer factories around the world, a move to sharply overhaul a production model that was long a hallmark of the PC giant’s strategy but is no longer competitive,” Justin Scheck reports for The Wall Street Journal.
“In recent months, according to people familiar with the matter, Dell has approached contract computer manufacturers with offers to sell the plants. One person briefed on the plan said he expects the company to sell most — and possibly all — of its factories ‘within the next 18 months.’ Other factories could close, this person said. Dell would enter into agreements with the contract manufacturers to produce its PCs,” Scheck reports.
“The Round Rock, Texas, company last week reported disappointing quarterly profit that helped send shares down more than 18%, and has been trying to reduce expenses since early last year,” Scheck reports.
“Dell could face several obstacles to selling its plants. Contract manufacturers may be hesitant to buy factories in places with high labor costs, like the U.S., said one person with knowledge of the talks. And some facilities could be encumbered by agreements with local governments. Dell’s North Carolina plant, for example, received several million dollars of state and local tax incentives that are contingent on the factory meeting certain employment and local-investment goals by 2015,” Scheck reports.
Full article here.
[Thanks to MacDailyNews Readers “Luis E.” and “John M.” for the heads up.]
When this happens, Dell will officially be nothing but another box maker. Hopefully, they’ll die the same way the others have as well.
Perhaps Apple and Foxconn should buy Dell’s factories – on the condition that the money be distributed to Dell shareholders.
Quit waiting for the tipping point, because Apple is definately pouring out of the kettle now. One shoots up and everyone else levels off, or goes broke. Amazing.
Maybe Apple could buy one of these factories to make the butt load of multi-touch devices that will be flooding the market by 2010.
But it would irk that component-whore Michael Dell to cash a check signed by Steve Jobs (but we all know he’d cash it).
Sell —> Cash —> Shrareholders
Thanks to Dell, it’s Schradenfreude Friday!
C’mere Michael. I want to taste those tears of yours.
Dell’s deal with North Carolina involved concessions worth a lot more than a ‘few million” dollars. Sounds like Michael owes the people of NC a lot of money.
Indeed, it would be nice to be present as the Dell logo was removed and the Apple logo went up on that facility. Unfortunately, Apple is too wedded to the high margins that come with production in China.
Who cares.
Dell is not much different from Staples or those companies that print your corporate logo on pens and mouse pads. Some other company will emerge to take Dell’s place in the world of commodity office tools.
Dell is DEAD.
Interesting you don’t hear a word out of Mr. Dell. He was a real BIG MOUTH before with his wise cracks about how Steve Jobs should put Apple out of business, that they have nothing left.
Looks like Mr. Dell should put his foot in his BIG MOUTH NOW!!!!
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How does that shoe taste Michael?
And you can blame Microsoft and Windows Vista as the big failure to add to your failure. Of course you can’t leave OSX out either.
@John
“Looks like Mr. Dell should put his foot in his BIG MOUTH NOW!!!!
How does that shoe taste Michael?”
I wonder if he’s tasting the new shoes that Bill Gates is wearing courtesy of Jerry Sienfeld?
You have to admit, though, it is very sad to see that all of those jobs once again will be outsourced to China and American workers will be heading for the unemployment line. We can’t go on like this forever.
Sad to lose those American jobs, though. Oh, well. Seems inevitable that cheap manufacturing is all sailing for China…
You beat me to it!!
It’s sad. The Dell plant in NC is less than a mile from my in-law’s house. It’s huge. It also has lots of grass growing in it’s equally huge parking lot.
{…
shareholders = [Dell closeDown];
[pool drain];
return 0;
}
MDN Word “face”, as in “in your…!” *snicker*
jarrettdailynews. “Apple is definately pouring out of the kettle now.”
Yes, they definitely are. It’s a finite thing.
What about selling Dell and giving the money back to the shareholders Michael?
Karma is a bitch!
Goodbye Gateway, I mean Dell !
MDN, is your memory so short? They’re going into the music biz again, remember? Who needs all those factories with the killer stratey they are mulling over.
How many computers do Apple assemble in the US?
It a bad, a really really bad time to be selling assets like this.
Poor Dell.
Aha. I know why they chose to dispose them at such a terrible time…
…advice from their most trusted adviser: Rob Enderle.
That shoe in Michael Dell’s mouth… it isn’t a size 10 is it?!
I don’t know how many computers Apple assembles in the US, but our two year old Mac Pro was made in CA.
The slap sh*t together made by others or resell the work of others. How is that manufacturing? Sounds like a middleman to me.
Eff ’em.