Could Dell Be Next to Leave China?

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figgus

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[citation]It is my opinion that the overall business climate (AKA TAXES and Regulations) is what drives most business overseas.[/citation]

This part is correct. I would say it is about 50-50 with labor costs.

The Obamacare bill is going to scuttle jobs rapidly. The CEO of Caterpillar said it will cost them $100 million per year to comply with it. $100 million is a lot of justification for a multinational company to relocate.
 
[citation][nom]figgus[/nom]The collapse you are seeing now is a direct result of those same protectionist measures. It's better to adjust with the market than to price yourself out of it.[/citation]
Its better to use protectionist measures and have a strong market. As more lose their jobs less will be able to buy. Thus the US market will rust away. Company's will then be forced to adjust to a much lower price or reduce their market focusing on the few with the high paying jobs. Automobile company's have already got a great taste of this. All intellectual property's such as movies and music company's will find it hard to make profits. The higher cost programs will be forced to MS office china prices of $29.
The important thing is how fast you want the slide to be.
 

hundert

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why do people care about dell. Their computer are not so good. I better assemble mine myself. There are lots of best CPU for buck articles on TomsHardware :p
 

devrahul

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Get one thing clear and very clear, i have worked with HP as well and know thier nerves, they not paying here In India as high a $2 or $3/hr
And when it comes to manufacturing, labour (uskilled) getting paid as $2 or $3/day ( and that is a 8-9 hrs shift ). Yes that is per day.
How much do you thin Macdonanald pays here ?
Like Under a $100 for whole freaking month working 8 hrs a days, 5 days a week.
Companies have moved out of US not becasue they have competitive advantage, but becasue they are greedy and management ( high profile company employees )people want to make sure that they get paid highest while those low at hierarchy ( In india and China ) are paid in pennies.
Ask me any question about wages here in India and i will get you the true picture not just a survey result or what your daily newspapaer says.
 

pug_s

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Pfft... The Indian PM is not exactly China friendly so he would say anything that would reflect that. The only kind of jobs going to India are tech support jobs. So the next time when you have support issues with your dell laptop, don't be surprised that 'Steve' with a funny accent will be answering the phone.
 

Hiniberus

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[citation][nom]thegreathuntingdolphin[/nom]We would NOT want Dell to come back unless you wanted Dell to fail as a company. [/citation]

Wait, they're not failing? Oh wait, they make failures of products and succeed as a company by putting the MAC equivalent tag on a Windows computer.
 

back_by_demand

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How about Dell getting PCs made in Mexico.
OK not as cheap as China but certainly a lot less than the USA, it would create lots of jobs, help their economy and shipping wouldn't be as expensive as all Jose has to do is drive over the border.

Problem.
Solved.
 

back_by_demand

Splendid
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Thor

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Its « funny» to think that since the best time forever spy of Unites States of America (USA), Mikhail Gorbachev, destroy URSS and sell it to USA, people living in USA are sure Communist is dead.
They just forget a little country with just 1.5 billions of people. Which is Communist too.
And if Capitalist is really idiot cause it’s just build for rich, Communist is crazy too.

But USA guys love so much money; well they love just that, so it’s really easy to attract them like China did with their millions of slaves.

It’s funny too to see USA think it’s the more powerful country of the world when in fact it’s China and India in second rank.

USA will be like Rome. And China and India will be the new USA soon.
 

danielmastia

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[citation][nom]kelemvor4[/nom]Wouldn't it be great if you could buy PC's manufactured in the US again? More likely, Dell would go to Japan or Taiwan or the Philippines though, rather than doing the right thing.[/citation]
I assure you if they move their production to the US, you'd have to pay at least three times what you pay now for a dell.
I doubt US citizens would work fot the same salary as china, i mean, they literally pay dimes (in US currency)
 

Marco925

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[citation][nom]kelemvor4[/nom]Wouldn't it be great if you could buy PC's manufactured in the US again? More likely, Dell would go to Japan or Taiwan or the Philippines though, rather than doing the right thing.[/citation]

Japan and Taiwan make Great stuff! they're hardly cheap anymore.

Japan makes the best capacitors as well.
 
G

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TOM.COM? Who cares what they do. The company was more than likely forced by the Chinese government to severe ties with Google.
 

ZEPd3Z

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[citation][nom]kelemvor4[/nom]Wouldn't it be great if you could buy PC's manufactured in the US again? More likely, Dell would go to Japan or Taiwan or the Philippines though, rather than doing the right thing.[/citation]
I agree, Its like we don't have a choice, everything is from china or taiwan. If I had a choice I'd only Buy computers Made in The USA or Philippines mainly because I'm filipino.
 

back_by_demand

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Look at this objectively, all the stuff that is made in China is testament to a single fact.

1) China is the easiest country to do business in
or
2) China is a 3rd world country with lots of cheap manual labour

Vote now!!!
 

josh jones

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I vote for number 2 lol. Some news reports indicate that new chinese laws favor domestic companies:) These new laws could explain dell's potential move.
 
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