Dell to Rid Itself of Factories by 2010

[invlem]

We wonder why our jobless rates are soaring in North America, sure its a world economy these days, but how do they expect the biggest buyers of their product (North America and Europe) to keep buying crap when they lay us all off and send production to another country?

This can only go on for so long eventually its going to backfire in a big way.

 

[xyster]

"As concerns over a weakening U.S. economy grow, some economists anticipate consumers here will be spending less. But PC makers already know that the U.S. is not the place to expect giant profits--much of the growth in the PC business these days is coming in emerging markets, where many consumers are making their first computer purchase.
"When we look at the potential for expansion, we do see enormous opportunity ahead," Michael Dell said. "As far as the U.S. goes, I think the U.S. will be OK, but not the fastest-growing. We expect more growth in Asia.""

http://news.cnet.com/8301-10784_3-9899377-7.html

I would say Dell doesnt think of america as their biggest buyers.

 

[Darkk]

The folks at Dell are buncha idiots. Outsourcing is NOT the answer. They need to take a look at their factories and see what they can do to reduce costs by streamlining things. High oil prices does NOT make sense to ship products overseas to manufacture and then ship them back to US. Granted labor cost are cheaper overseas BUT the current prices of oil makes shipping MORE expensive.

Dell needs to take a look at the hard numbers in terms of costs instead of just giving up and go overseas. I like Dell in corporate environment but for home use I either custom build the PCs or buy HP laptops.

 

[billyg45]

Soon there will be nobody left to buy these products (except the rich and coporations), everybody's jobs will be outsourced. Maybe they should start building ultra cheap pc's for their future consumers- the two dollar an hour india worker.

 

[mykem]

Dell's quality has gone down hill to the point that they are no longer a good value. Their support quality has also plummeted. I believe the business process that should change is to increase their image and quality. Outsourcing their builds takes it down yet another notch. I stopped buying Dells after I purchased one for a client after the Best Buy merger. I cannot recommend them to clients any more.

 

[Guest]

Great comments people!!
Now, lets go hit an immigrant! ¬¬

 

[jalek]

Immigrants aren't the problem, they'll be laid off along with the natives.

Dell was never much more than an assembler of whitebox parts. I used to have a store and sold labeled desktops and laptops built from parts, but never considered myself a "manufacturer".

My systems also weren't built with the idea of limiting future expansion, so maybe that's the real difference.

 

[itadakimasu]

Like the really vulgar guy was saying... alot of people buy Dells because they're reliable office computers.

the problem w\ this industry is that if you sell somebody a computer this year for use in an office or just general use... they probably wont need another for years. Hell, we still have a Pentium 2 Dell Poweredge chugging along still in our server room.

so a trade-off for quality, long lasting machines is the obvious... they just dont need to be replaced every year so sales are obviously going to spike, drop, spike, drop.

 

[Guest]

You see the problem, now correct it. As a consumer, you make the choices to buy the junk that comes from overseas. Look before you buy stuff labeled not made in USA, have fun we don't make much anymore. It's not just Dell's stuff that has gone down the tubes, its everything as consumer greed demands lower prices with more options. People complain about $10 shoes!