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WSJ: Dell plans to sell factories
Dell Inc.’s computer factories around the world might be for sale. The Wall Street Journal reported the story in its Friday edition.
The company operates factories in Texas, Tennessee, North Carolina, Florida, Ireland, India, China, Brazil, Malaysia and Poland. According to an unnamed source in the Journal’s article, the computer maker expects to sell most or all of the factories in the next 18 months. Other factories would close, the newspaper reported.
The proposed sales would be a new direction for Dell, which makes its own products. According to the Journal’s article, other large contract manufacturers likely would make the computers and sell them to Dell.
A Dell spokesman referred to inquiries to a Securities and Exchange Commission filing that said Dell is “continuing to expand our use of original design manufacturing partnerships and manufacturing outsourcing relationships.”
Dell reported a disappointing quarter last week. The company’s profit plunged 17 percent, and the stock tumbled 18 percent.
Comments
By kibblz
September 5, 2008 11:39 AM | Link to this
so we can say good bye to more US jobs!….this is getting silly.. the US really doesn’t make anything any more - we are completely dependent on foreign countries - HOW SAD we have become. The US will only be a strong nation if we can count on ourselves for things.
By kibblz
September 5, 2008 11:41 AM | Link to this
so we can say good bye to more US jobs!….this is getting silly.. the US really doesn’t make anything any more - we are completely dependent on foreign countries - HOW SAD we have become. The US will only be a strong nation if we can count on ourselves for things.
By Joe Bogus
September 5, 2008 11:54 AM | Link to this
Curiously, the comment form claims “Your e-mail address will be displayed.”, yet I see no addresses on the prev. comments. I see a “mailto:” tag, but let’s not quibble…
I knew Little Mickey Dell when he 1st moved into Jester Hall, at the University of Texas, Austin. He once called me to borrow some test gear. This is a guy who can’t even spell “PC”! Will he or his product be missed? Not by anyone with a Clue!
By JJ
September 5, 2008 12:12 PM | Link to this
Seems like some has a bad case of the ‘jellies’. cough Joe Bogus cough
By Barney
September 5, 2008 12:20 PM | Link to this
Smart move. Now Dell can pass blame to their Pacific Rim subcontractors for their substandard products and tech support. Too bad they can’t offshore the management and marketing teams overseas too. What an tragedy Austin is still associated with Dell.
By Steve1974
September 5, 2008 12:26 PM | Link to this
What a “tragedy” Austin is still associated with Dell? Do you realize how much money the Dells have given and donated to programs in and around Austin?
By DCMC Worker
September 5, 2008 12:41 PM | Link to this
Sucks to be working at Dell. The Dell’s have donated a tremendous amount of money to the Dell Children’s Medical Center, obviously, since their name is on it. Without those funds, would we even be working here now? We are grateful for their continued assistance.
By borninatx
September 5, 2008 12:42 PM | Link to this
It was known that pert of the factory here would affect approximately 1000-1500 manufacuring jobs. The plant still has a lot of employees that seem to be in support functions such as Accounting and Fianance, Purchasing, Human Resources, Marketing, Sales ect. Would the sales of factories actually affect the Austin employees that we have now? If they moved everyone or laid off the residual of employees, would Dell have to reimburse any incentives they have already received? Would all support functions be transferred into one location (the new facility which I understand received very large incentives) eliminating duplication of jobs?
By Wilco Resident
September 5, 2008 12:54 PM | Link to this
When is the going out of business sale? Might pick up a dell or two.
By Brian
September 5, 2008 1:02 PM | Link to this
A really hard-nosed management would have unloaded the U.S. real estate back when it would have brought top dollar, and wouldn’t have made the corporate welfare deals that’ll have to be settled up. This is just the reality faced by business in the U.S. - high overhead, high taxes (incl property taxes), high labor costs, shrinking margins, weakening profits. No point in trying to “make” anything in the U.S. that can be made elsewhere and shipped worldwide at a fraction of U.S. costs. Dell will still need some sales-marketing people for corporate-govt accounts and a little back office to handle U.S. legal and tax, but that’s about it.
By Dick
September 5, 2008 1:02 PM | Link to this
REVOLT! BURN IT ALL DOWN!
WE DONT NEED NO STINKING AMERICA!
I THINK I REMEMBER: EAT THE RICH. YES, LITERALLY EAT THEM.
PALIN LOOKS GOOD TO ME!
By Frank Tilley
September 5, 2008 1:05 PM | Link to this
when you buy parts from another mfr, you decrease your own costs for payroll taxes, health insurance, etc. the list of savings is endless
you want american jobs to stop going overseas? stop taxing the hell out of them — and you might as well include health insurance as part of those tax costs because they’re just as mandatory as taxes
By Kurly M
September 5, 2008 1:16 PM | Link to this
One of my duties is to assess if my employees (the people I pay to provide a service) are needed or if I can afford to employ them. For example, last year I fired Time Warner Cable (I pay them to provide entertainment) because I could no longer afford them, and found a cheaper alternative. Last week, I fired HBO, because I found their services below standard. We make these same kinds of descisions everyday, and we consider ourselves “fiscally responsible”. Dell does it and they are considered “bad for the economy”. How is that possible?!?!
By oic
September 5, 2008 1:36 PM | Link to this
Wow Joe, you sound like a jealous former friend. Michael Dell has made a strong impact on the computing world and has given jobs to thousands of paople around the world and has made many many people wealthy beyond their imaginations. I’m sorry if you feel slighted but i the over all big picture many people have benefitted from Michael Dell. I be Round Rock wouldn’t even be on the map if Dell wasn’t headquartered here.
By ironical
September 5, 2008 1:58 PM | Link to this
good point, kurly. the answer is because many people are short-sighted and refuse to consider the whole picture. that or they are terribly, unfortunately, very selfish. or both.
the saddest part is that it is their choice to perceive things as they do.
they could change it in a heartbeat if …
By ESG
September 5, 2008 2:02 PM | Link to this
Dell does not really design anything. They use mostly off the shelf technology. Their claim to fame used to be lean cost effective manufacturing and inventory controll. Now if they can’t even do that, what is their value add?
By usedtoworkthere
September 5, 2008 2:20 PM | Link to this
Sad that our country is loosing more jobs, yes, but it seems that the tech industry is a dying horse right now. What is the new big hot industry??? Somthing will come along…. I also am a former Dell person, it seemed like when we were there everyone was trying to break out like a prison break. Time for a chnage.
By Helen
September 5, 2008 2:21 PM | Link to this
So … does this mean that Dell computers, like everything else, will now be built in China? That’s just great. Good-bye quality, hello junk.
By Bob
September 5, 2008 3:02 PM | Link to this
RE: Helen
Dell’s are already designed in China, and a majority of the parts come from Korea, Taiwan, China, etc. Very few systems (servers and storage) are actually still assembled in the US. You’ve been buying China “junk” for several years especially if you have a Dell laptop.
By Christopher
September 5, 2008 3:13 PM | Link to this
Michael Dell may have made a strong impact on the computing world, employed thousands, and made many others wealthy, but-
if they closed their doors tomorrow (something I don’t actually wish for, and I have family who still work there) would Dell Inc. really be missed? In other words, what does Dell still do that no other company can?
By JD
September 5, 2008 3:13 PM | Link to this
Not India! Who will we talk to now to get Tech(?)Support?
By JD
September 5, 2008 3:17 PM | Link to this
Oh no, not India! How are we going to get Tech(?) Support.
By jpt51
September 5, 2008 4:09 PM | Link to this
If I owned stock in Dell, I’d be selling…
By keith
September 5, 2008 4:19 PM | Link to this
It’s funny how bent out of shape people get over a story that didn’t even come straight from Dell. It’s basically a ‘rumor’ when it comes down to it….yet everyone is acting like it came straight from Dell….it just said it was from ‘sources’ but I never take stories like that seriously, cause 99% of the time they end up getting dismissed and rightfully so - someone probably made the story up and the WSJ bought into it…..until Dell comes out right and announces it, then don’t believe it - gee what a bunch of gullible people
By DSE
September 5, 2008 4:50 PM | Link to this
So all Dell does today is assemple other people’s parts into computers. Tomorrow they’ll only buy comptures assembled by other people and sell them to us. So what’s the value they add? I thought their strength was in they’re opperations?
By Duh
September 5, 2008 5:25 PM | Link to this
Looking at the spelling and errors, I was musing that maybe “oic” is Mike Dell.OIC are you Mikey Dell?
By Chili Cheese Dog
September 5, 2008 6:51 PM | Link to this
Why is it that the statesman lets people blog about Las Manitas or anything else with blind e-mails, but on Dell stories they have to show thier e-mail address? Who is Big Brother watching?
By ChuckS
September 5, 2008 7:00 PM | Link to this
Have any of you people really read Obama’s economic policies?
By compaq computers
September 6, 2008 11:59 AM | Link to this
I wonder if HP is going to have bill boards opposite the Dell factories advertising employment opportunities like Mike Dell did? What goes around comes around Mikey you greedy selfish pig!!!
By Steve
September 6, 2008 11:18 PM | Link to this
Doesnt sound like many of you know how this consumer electronics busines works. Very few people make their own stuff - Dell is one of the last that actually manufactures its own product. Apple and HP sure as heck dont. And just because you pay someone else to manufacture your product - it doesnt mean they design your product. Dell would dictate what it wants and the factory would make it - just as it happens today. And for all those that say Dell adds nothing - its not just Round Rock that Dell put on the map - its Austin as well.
By Jimmnknee kricket
September 7, 2008 10:06 AM | Link to this
Dell’s lez employees will have to go work at the fire dept.
By M DELL
September 7, 2008 8:45 PM | Link to this
My apologies to everyone, but that’s showbiz! Yes, I do read these post and I know who you are. You’re FIRED! And YOU, and YOU…no health care, severence? What’s that? Kevin Rollins took every last cent, dammit!
By zeon
September 8, 2008 9:05 AM | Link to this
Steve: Austin was on the map long before Dell opened shop.