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    Dell is closing Austin, TX manufacturing facility

    Discussion in 'Dell' started by hcp, Mar 31, 2008.

  1. hcp

    hcp Notebook Consultant

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    I don't know if this is old news, but here it is anyway... Does that mean more grainy screens and quality issues are on the way???

    http://news.yahoo.com/s/ap/20080331/ap_on_hi_te/dell_savings;_ylt=AkPaMrNstAtZGxXj2tJ8UTtdCGYD

    Dell says it will save as much as $3 billion over the next three years as it cuts costs and lays off workers.

    The world's No. 2 computer maker said Monday it will close its desktop manufacturing facility in Austin, Texas.

    Dell Inc. is also reaffirming its plan — announced last year — to cut at least 8,800 jobs, or about 10 percent of its work force. In the last nine months of fiscal 2008, the Round Rock, Texas-based company cut 3,200 jobs.

    The company plans a broad range of cost cuts in design, manufacturing and logistics, materials and operating expenses to stay competitive.

    Dell is also reviewing alternatives for its financial services business, especially its consumer and small to medium business revolving credit financing receivables.

    Shares of Dell rose 31 cents to close at $19.92. They added another 28 cents to $20.20 in aftermarket activity.
     
    hcp, Mar 31, 2008
    #1
  2. talin

    talin Notebook Prophet

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    Dell only assembles computers, they don't actually manufacture their own parts, so if the grainy screen issues continue, it's because they're still using the same manufacturers that supply their parts.
     
    talin, Mar 31, 2008
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  3. millermagic

    millermagic Rockin the pinktop

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    Exactly. Same as with most cars - IE Ford contracts with one company for body panels, another company for wheels...

    I don't know the numbers, but could this be because laptops are coming more popular and less people are buying desktops?
     
    millermagic, Mar 31, 2008
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  4. Rodster

    Rodster Merica

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    I think that has to do with the problem. Desktops were in high demand when PC games were plentiful. Now most games are developed for consoles. And laptops are beginning to replace desktops for various reasons. Heck i'm seriously considering a Vostro 1700 to play games so I can ditch my desktop. :cool:
     
    Rodster, Mar 31, 2008
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  5. eoen

    eoen Notebook Enthusiast

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    notice how it says "close its desktop manufacturing facility" desktop not laptop :)
     
    eoen, Mar 31, 2008
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  6. atbnet

    atbnet Notebook Prophet

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    More American jobs good, that sucks. Too bad the cause isn't that they needed these people to assemble laptops and are just shifting production.
     
    atbnet, Mar 31, 2008
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