Engadget

Dell looking to sell factories to increase profitability

<p>Filed under: <a href="http://www.engadget.com/category/desktops/" rel="tag">Desktops</a>, <a href="http://www.engadget.com/category/laptops/" rel="tag">Laptops</a></p><div align="center"><a href="http://online.wsj.com/article/SB122058183649202581.html"><img hspace="4" vspace="4" border="1" alt="" src="http://www.blogsmithmedia.com/www.engadget.com/media/2008/09/dell-factory-09-05-08.jpg" /></a><br /> <div align="left">It looks like Dell is taking a rather drastic step to attempt to cut some of the costs that have been dragging it down in recent years, with The Wall Street Journal now reporting that the company plans to sell "most -- and possibly all -- of its factories" within the next 18 months -- if it can find some buyers, that is. As the paper notes, the factories were originally built to serve a PC market driven by corporate customers ordering large volumes of desktop PCs, but they've fast become a drag on the company as growth has shifted towards laptops sold at retail stores. While nothing is anywhere near official yet, the Journal pegs big contract manufacturers angling for a bigger piece of Dell's business as the most likely buyers, although there's a number of obstacles that could block such a sale, particularly when it comes to Dell's factories in the US. Dell is also said to be considering simply closing down some of the factories, and instead rely on those aforementioned contract manufacturers to build its PCs. Hit up the link below for the full saga and backstory.<br /><br />[Via <a href="http://www.blogrunner.com/snapshot/D/9/0/dell_plans_to_sell_factories/">Blogrunner</a>, image courtesy <a href="http://www.jpr.com.my/ProInd.htm">J.P.R Sdn Bhd</a>]</div> </div><h6 style="clear: both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding: 0;"></h6><a href=http://online.wsj.com/article/SB122058183649202581.html>Read</a> | <a href="http://www.engadget.com/2008/09/05/dell-looking-to-sell-factories-to-increase-profitability/" rel="bookmark" title="Permanent link to this entry">Permalink</a> | <a href="http://www.engadget.com/forward/1306014/" title="Send this entry to a friend via email">Email this</a> | <a href="http://www.engadget.com/2008/09/05/dell-looking-to-sell-factories-to-increase-profitability/#comments" title="View reader comments on this entry">Comments</a> <p><a href="http://feeds.feedburner.com/~a/weblogsinc/engadget?a=DQEDeM"><img src="http://feeds.feedburner.com/~a/weblogsinc/engadget?i=DQEDeM" border="0"></img></a></p><div class="feedflare"> <a href="http://feeds.feedburner.com/~f/weblogsinc/engadget?a=EWLMl"><img src="http://feeds.feedburner.com/~f/weblogsinc/engadget?i=EWLMl" border="0"></img></a> <a href="http://feeds.feedburner.com/~f/weblogsinc/engadget?a=hqCVl"><img src="http://feeds.feedburner.com/~f/weblogsinc/engadget?i=hqCVl" border="0"></img></a> </div><img src="http://feeds.feedburner.com/~r/weblogsinc/engadget/~4/384546139" height="1" width="1"/>

Comments