Dell Might Be Selling Off Manufacturing Plants

Dell Might Be Selling Off Manufacturing Plants

There has been speculations made about Dell auctioning its computer manufacturing plants as a way of cutting operational costs. Though Dell has neither confirmed nor denied if the rumors were true, some analysts believe that the company's supposed move would be a dramatic one since it rose to success for effectively and efficiently managing its manufacturing process.
Dell reported on Aug. 28 that it had a 17 percent decrease in net income for the second quarter this year, 130 million off from the previous quarter. This is attributed to lower prices and restructuring charges. The company even had to cut 8,500 jobs as part of its consolidation effort.

 

If rumors are true,  Dell would face several obstacles in selling its plants considering desktop sale is shrinking worldwide. There is also a possibility Dell would outsource manufacturing to stay competitive with rivals Hewlett-Packard, Acer, and Asus.