YAY Dell is going out of buisness!!!


Ok, ok maybe I’m being too hopeful. But being a former employee of Dell Canada, I have learned to despise those that run that overweight and pointlessly over bureaucratic company. This is a company that constantly judges there customers purely on the weight of their wallet, regardless of what you buy there. There multilevel customer support schemes are designed to piss off the poor and kiss the ass of the rich and those that may remotely be connected to government.

Anyways, I have always estimated that there inefficiencies and lack of effective organization would mean there downfall and it seems to me that Mr Dell (further noted in this post as Mr. Douchebag) finally realized it himself. What Mr Douchebag is TRYING to do is cut his losses and move ALL his factories to cheaper companies and employ barley legal working standards.

All this just so that he can look up to his good ‘ol buddies H. Lee Scott (C.E.O. of Walmart), and George W. Bush and see who has the biggest set of balls. SO he’d stand there and brag to his aristocrat buddies and probably say something like this… “Heh heh heh! Look at dem Philippians try to make a computer! HA ha, it won’t matter I’ll just sell them to the dumb lower classes anyways! Hell I’d be surprised if the dumb bastards could even turn the suckers on! They won’t notice, hell they’ll probably buy more anyways!”. Then Mr. Douchebag, Bush and Scott would try and compare how much money they’ve fooled the lower classes out of with there horrible products and international dealings.

This is the type of guy who refused multiple times to allow a adequate power grid to be put in for the parking stalls in the Edmonton building because he wouldn’t believe that cars had to be plugged in to keep warm in the Canadian winters. (THIS IS TRUE!) He had to be shown this IN PERSON when he finally decided to go to Canada!

I’m gonna tell you whats going to happen. Mr. Douchebag is going to move ALL his Factories and what’s left of his North American call centres and move them all to shitty 3rd world countries. There they’re going to train who they think speaks the best English how to fix computers for maybe 3 weeks (This training is a joke might I add). And these will be your technicians and the people who build your computers. Most of this has already taken place.

Then in about a year or so he’s going to drop all desktops and go for only Laptops, small form factor computers and Servers. Mr. Douchebag will drop most of his cheaper products and decide to copy apple for some fucking dumbass reason and come out with their own small portable products (mp3 players, phones, PDA’s), and try to convey an image that Dell is “cool”. Who knows maybe they’ll even come up with there own O.S. like apple too. (probably based off of Debian). This won’t work and people will start to stop buying there products because of poor support and a shitty overall product. There stocks will plummet and and the only thing they had that could keep them afloat they just fired, laid off and cheated. Good quality employees and Good quality customers.

I say that in 5 years, 10 tops, Dell inc will be no more. Cheep labour, fine, shitty product, ok whatever, fire your best workers and piss off your customers with horrible support, no I’m sorry, in this industry your done for.

IBM and HP have been gobbling up Dells former employees and buying some of these buildings for them selves, even though I consider there products to be about just as bad, I believe that these companies will last MUCH MUCH longer.

My advice is this, ANYONE with Dell stocks, SELL THEM NOW!! There stock is probably going to go down soon.
ANYONE even THINKING of buying any of there product, kick yourself in the balls, there you’ve just gotten the same enjoyment you’re brand new Mr. Douchebag computer would of gotten you! Buy a REAL computer from some local store that actually KNOWS what there doing! It’ll cost you more but you’ll get more service and less headaches, and chances are that that computer will last you upwards to 8-9 years.

Here’s a article from the Wall Street Journal

Dell Plans to Sell Factories

In Effort to Cut Costs

By JUSTIN SCHECK
September 5, 2008; Page A1

Dell Inc. is trying to sell its computer factories around the world, a move to sharply overhaul a production model that was long a hallmark of the PC giant’s strategy but is no longer competitive.

In recent months, according to people familiar with the matter, Dell has approached contract computer manufacturers with offers to sell the plants. One person briefed on the plan said he expects the company to sell most — and possibly all — of its factories “within the next 18 months.” Other factories could close, this person said. Dell would enter into agreements with the contract manufacturers to produce its PCs.

[Dell to Cut Costs]

The plan is the latest sign of changes in the global PC business, and the increasing pressure on Dell to improve its profitability. The Round Rock, Texas, company last week reported disappointing quarterly profit that helped send shares down more than 18%, and has been trying to reduce expenses since early last year. Dell, which led the industry in lean manufacturing approaches and build-to-order PC manufacturing, now finds itself lagging rivals in wringing the most savings by outsourcing operations to production partners.

Any factory sales are contingent on Dell finding buyers. The most likely candidates are big contract manufacturers — most of which are based in Asia — that may hope to get a bigger piece of Dell’s business. A company that purchases a Dell factory would likely be contracted to continue making computers there for Dell, said one person with knowledge of the talks.

Dell’s factories were originally tailored for a PC market that was driven by corporate customers ordering large volumes of desktop PCs. But over the past three years, growth has shifted to laptops sold to consumers at retail stores. Dell has lagged behind competitors in coming up with a streamlined system to build portable PCs.

A Dell spokesman asked to comment referred to a company filing with the Securities and Exchange Commission earlier this year that said Dell is “continuing to expand our use of original design manufacturing partnerships and manufacturing outsourcing relationships.”

Dell could face several obstacles to selling its plants. Contract manufacturers may be hesitant to buy factories in places with high labor costs, like the U.S., said one person with knowledge of the talks. And some facilities could be encumbered by agreements with local governments. Dell’s North Carolina plant, for example, received several million dollars of state and local tax incentives that are contingent on the factory meeting certain employment and local-investment goals by 2015.

Michael Dell, the company’s founder, drove an innovative strategy of selling computers directly to customers, only building them after they were ordered. After a customer places an order through the Web or over the phone, the company’s factories assemble the needed components, load PCs with software and ship them in a matter of hours.

[Michael Dell]
Bloomberg/Landov
Michael Dell, chairman of Dell Inc., at a conference in Sun Valley, Idaho, earlier this year.

The system eliminated idle inventory and maximized Dell’s cash flow. The company owns factories in Texas, Tennessee, North Carolina, Florida, Ireland, India, China, Brazil, Malaysia and Lodz, Poland, where it opened a plant early last year.

Dell’s plants are still regarded as efficient at churning out desktop PCs. But within the industry, company-owned factories aren’t considered the least expensive way to produce laptops, which have been the main driver of growth lately and are complex and labor-intensive to assemble. Rivals such as
onmouseover=”window.status=(‘ Quotes & Research for HPQ’);return true”
onmouseout=”window.status=(”);return true”>Hewlett-Packard Co. years ago shifted to contract manufacturers — companies that provide production services to others — to build their portable computers. H-P builds “less than half” of its PCs in facilities it owns, wrote Tony Prophet, H-P’s senior vice president for PC supply chain, in an e-mail.

Contract manufacturers can generally produce computers more cheaply because their entire operations are narrowly focused on finding efficiencies in manufacturing, as opposed to large firms like Dell, which must also balance marketing and other considerations.

For many Dell notebooks, a contract manufacturer already partially builds each system in a plant in Asia. The half-built computers are then shipped to one of Dell’s own plants where assembly is completed. Because each computer goes to two factories, Dell refers to the system as “two touch.”

Dell began efforts to cut manufacturing costs last year. It has farmed out an increasing number of products to contract manufacturers such as Taiwan’s Foxconn Group to eliminate two-touch production of some notebooks, and earlier this year closed down one of its own plants in Texas.

Selling factories could be a culmination of a plan Dell started last year to increase its reliance on contract manufacturers, something competitors did first. “A lot of companies are already on that model,” said Mike Cannon, Dell’s production chief, in an interview earlier this year. “We’re playing catch-up there.”

H-P, for example, transferred a leased PC plant in Australia to Foxconn in 2005. Apple Inc. has many of its PCs shipped directly from Asian manufacturers’ plants to customers.

Series of Steps

Reducing costs for manufacturing and other operations is one of a series of steps Dell hopes will restore momentum after a slide that saw the company lose its position as the world’s biggest PC maker by sales to H-P. Mr. Dell returned as chief executive in January 2007, and said he would revive the company through a combination of investments and strategy changes — including the introduction of sales through retail stores — and move to cost cuts.

Since then, Dell has unveiled a series of more stylish products and laid off about 8,500 workers. The company sold 53% more consumer PCs in its fiscal quarter ended Aug. 1 than it did a year earlier, sending its world-wide consumer market share to 9.1%, up from 7.5% at the same time last year, the company said.

But Dell reported a 17% drop in quarterly income compared with last year. Profit margins fell, the consumer business lost money, and the company said costs remained too high to compensate for the growing investment in new markets, which included aggressive cuts to PC prices to help drive sales, especially in Europe.

Part of Dell’s problem is the long-term shift by consumers to buy laptops, which many consumers prefer to buy in retail stores. The company has addressed that issue, offering machines through channels such as Best Buy.

But its factories are geared toward building PCs for direct-order customers. The two-touch system was one result; Dell couldn’t figure out how to efficiently link its custom-order system to the contractors’ factories, said people familiar with the matter. In the past, the extra shipping and assembly costs associated with the two-touch system weren’t significant problems for Dell, since the company maintained relatively high profit margins by avoiding marketing and other costs associated with selling through retail channels.

Manufacturing Costs

As Dell moved into retail stores last year — and as PC prices continued to drop and transport prices went up — manufacturing costs have become a bigger issue. In its last quarter, Dell saw a 2% annual decline in desktop sales and a 26% jump in notebook revenue.

Due in part to the production system, Dell’s operating margin last quarter was 5%, said Lou Miscioscia, an analyst at Cowen & Co., while H-P’s margin in PCs was nearly 5.7%.

Dell, whose latest balance sheet values all its property, plant and equipment at $2.6 billion, isn’t likely to reap a financial windfall from selling factories, said Mr. Miscioscia. Instead, the benefits of shedding factories would come over the long term, through reduced spending.

Improving Dell’s manufacturing processes is the responsibility of Mr. Cannon, the production chief who was hired by Mr. Dell after his return early last year. Mr. Cannon was formerly CEO of contract manufacturer Solectron, which is now owned by Flextronics Inc.

Mr. Cannon initially delayed a plan early last year that would have streamlined the manufacturing system, said several current and former executives. In the interview this year, Mr. Cannon declined to comment on that plan, but said he has been working since his arrival at Dell to outsource more of its manufacturing. Asked if the company might sell or close some plants, Mr. Cannon said, “Everything’s on the table.” The Dell spokesman said Thursday Mr. Cannon was unavailable for comment.

Write to Justin Scheck at justin.scheck@wsj.com

  1. #1 by Super Dave on September 8, 2008 - 10:04 am

    I never have, never will and…um…never have liked Dell.
    I’d rather buy a computer made by Pizza Hut.

  2. #2 by Jared on October 28, 2008 - 3:53 am

    he does have spell check and this is the result be afraid

  3. #3 by George Bush on March 6, 2009 - 5:45 pm

    You are all a bunch of whiny little turds.

  4. #4 by Wes on March 20, 2009 - 7:03 pm

    Sounds to me like this article was written by a dumbass who used to work for Dell and was pissed off that he was one of the dumber techs and was laid off. I love the comments around Apple. The author is clearly a diehard Microsoft fanboy. I hold Linux, Apple, and Microsoft certifications. Microsoft certs are by far the easiest to obtain. Microsoft finally realized becoming certified was too easy and they have harden up their test. But this isn’t about OS’s, it’s about computer manufactures. I’ve been in the industry for a long time and I see more HP’s with problems than any other company. Second place would be Gateway followed by eMachines. Next comes Dell, IBM and then Acer. This shit is typical, someone has a bad experience or a few and discredits the entire company. I custom build my personal machines and I’ve had major issue ASUS boards and I’ve had issues MSI, Intel, Gigabyte and DFI boards. Lets break it down the next component, RAM. I’ve had problems with PNY, Crucial, Kingston, G.Skill and Corsair. I could go on and on but there is no point. It’s electronics and shit breaks. Period. The only point worth a damn is outsourcing. Most companies these days, sadly, outsource. It’s just the way it is. I’d much read some how lame our president is and his stimulus package isn’t doing a damn fucking thing except stimulating the wallet of a few CEOs, like ones that work for AIG. If you’re going to bitch about and try to get believe how shitty a company is, your next article needs to be about them.

  5. #5 by Clint Theriault on April 8, 2009 - 9:39 pm

    Wes :
    Sounds to me like this article was written by a dumbass who used to work for Dell and was pissed off that he was one of the dumber techs and was laid off. I love the comments around Apple. The author is clearly a diehard Microsoft fanboy. I hold Linux, Apple, and Microsoft certifications. Microsoft certs are by far the easiest to obtain. Microsoft finally realized becoming certified was too easy and they have harden up their test. But this isn’t about OS’s, it’s about computer manufactures. I’ve been in the industry for a long time and I see more HP’s with problems than any other company. Second place would be Gateway followed by eMachines. Next comes Dell, IBM and then Acer. This shit is typical, someone has a bad experience or a few and discredits the entire company. I custom build my personal machines and I’ve had major issue ASUS boards and I’ve had issues MSI, Intel, Gigabyte and DFI boards. Lets break it down the next component, RAM. I’ve had problems with PNY, Crucial, Kingston, G.Skill and Corsair. I could go on and on but there is no point. It’s electronics and shit breaks. Period. The only point worth a damn is outsourcing. Most companies these days, sadly, outsource. It’s just the way it is. I’d much read some how lame our president is and his stimulus package isn’t doing a damn fucking thing except stimulating the wallet of a few CEOs, like ones that work for AIG. If you’re going to bitch about and try to get believe how shitty a company is, your next article needs to be about them.

    Hey I quit that P.O.S. Job and started my own Computer store!
    I agree most larger companies are like this and this isn’t anything new. This was really more of a rant than an article, and I kind of regret writing it at 2:30am. I’ve also had many Issues with ASUS but I’ve had more issues with most of the other brands. ASUS has always made shitty BIOS and Drivers, but there Hardware is fucking solid.
    DIY is the only true solution for Computers.

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