Dell Plans to Sell Most Factories within 18 Months
Dell Plans to Sell Most Factories within 18 Months
Posted 09/09/2008 at 9:40pm
| by Pulkit Chandna
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Dell’s ongoing financial travails and tribulation have driven it to a very drastic step of disposing off factories. It plans to sell most of its factories within the next year and a half in order to curb costs. The possibility of Dell selling or closing all of its plants also can not be ruled out, according to a Wall Street Journal report. Asian contract manufacturers are the most likely buyers of Dell’s factories.
The eventual buyers of its plants might also be entrusted with the task of manufacturing Dell products. However, the second largest PC manufacturer in the world might find it difficult to attract Asian buyers towards its U.S factories that have high operational costs due to the steep cost of labor.
Dell is undergoing metamorphic changes (read strategical): it has mobilized its financial resources towards building a stronger retail presence. Furthermore, it is betting big on cloud computing.
Image Credit: Cnet
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kc7wbq
September 10, 2008 at 10:05am
I'm no finacial expert, but how will these two steps save Dell any money?
Once they sell off their factories won't they have to pay higher prices for their stock?
And how does focusing on cloud computing help? If cloud computing ever really takes off people will still have to have their own computer to access the cloud.
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