Dell is attempting to sell its computer factories located around the world as part of an overhaul of its production strategy. Reports are coming in that Dell is in negotiation with "major contract manufacturers" to sell of most of its facilities. This could happen as early as within the next 18 months, according to reports. Other factories would just close.
The swift transition away from built-to-order PCs--or corporate customers ordering large numbers of desktop PCs--to laptops has left Dell, once the industry leader, lagging behind rivals. By outsourcing the manufacturing, Dell hopes to bring down manufacturing costs. Indeed, investors were left disappointed [1] by quarterly profits that were reported as down 18 percent.
For more on how Dell is doing:
- check out this Wall Street Journal article [2]
Links:
[1] http://www.theregister.co.uk/1998/09/05/dell_to_open_third_factory/
[2] http://online.wsj.com/article/SB122058183649202581.html