Fall Of An Giant? DELL to SELL Factories

Posted by Kris | Friday, September 05, 2008 | | 0 comments »

ReutersDell plans to sell computer factories: report
Friday September 5, 3:12 am ET
(Reuters) - Dell Inc (NasdaqGS:
DELL - News) is trying to sell computer factories around the world in efforts to cut cost and improve profitability, the Wall Street Journal said.

In recent months, Dell has approached contract computer manufacturers with offers to sell the plants, the paper said, citing people familiar with the matter.

One person briefed on the plan told the Journal that he expects Dell to sell most, possibly all, of its factories "within the next 18 months."

The most likely buyers of Dell's factories will be big contract manufacturers, most of which are based in Asia, the paper said.

Dell's factories were originally tailored for a PC market that was driven by corporate customers ordering large volumes of desktop PCs.

But over the past three years, growth has shifted to laptops sold to consumers at retail stores. Round Rock, Texas-based Dell has lagged behind competitors in coming up with a streamlined system to build portable PCs.