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Virtualization & Cloud Computing Changes Dell's Business Model

Dell Is Trying To Sell its Factories To Contract Manufacturers That Would Then Make its PCs
By Maureen O'Gara
Article Rating:
September 12, 2008 02:03 PM EDT
Reads:
 1,784

Dell is trying to sell its factories – strategic when direct-order desktops were king, now uncompetitive in a laptop world – to contract manufacturers that would then make its PCs, according to the Wall Street Journal.

HP has already outsourced a lot of its gear.

An unidentified source told the paper Dell could be shot of them in 18 months provided of course it finds buyers. What it doesn’t sell could be closed.

Dell has factories in Texas, Tennessee, North Carolina, Florida, Ireland, India, China, Brazil, Malaysia and Poland.

The properties are valued at around $2.6 billion.

Dell has been buying back market share with aggressive pricing while shouldering the unaccustomed costs of retail distribution and just reported a 17% drop in earnings its last quarter.

 

Published September 12, 2008 – Reads 1,784
Copyright © 2008 SYS-CON Media, Inc. — All Rights Reserved.
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More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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