WSJ: Dell Trying To Sell Factories

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Round Rock, Texas — Dell is hoping to sell its collection of factories around the world, according to The Wall Street Journal.

Unnamed sources said to be “familiar with the matter” told WSJ that the company has been approaching contract computer manufacturers in recent months with offers to sell the plans, and that the company is hoping to unload most or all of its factories in the next 18 months.

WSJ said the move to sell was intented to “sharply overhaul a production model that was long a hallmark of the PC giant’s strategy but is no longer competitive.” Essentially, it said the company’s original manufacturing model by which each product was constructed in two factories is proving to be too much of a burden now that it has to product so many of its products in advance for its new mass market retail distribution because it is feeling the extra manufacturing costs associated with its production system far more significantly than it did when it had its direct-to-customer model.

According to the story, Dell’s move to shed factories is expected to provide long-term financial benefits through reduced spending.

As of this posting, Dell was unavailable for comment.


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