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Dell to Sell Most or All of Its Factories in 18 Months

gizmodo.com — According to the Wall Street Journal, Dell is restructuring their production in a massive overhaul that will send the entire manufacturing process overseas. According to one insider's account, most or all of Dell's factories, which are based in the US, will be sold off in 18 months.

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  • screwy3333, on 09/05/2008, -4/+30I plan on buying 14 of the factories for my newly formed BTO mega corporation.....
    • Punch405, on 09/06/2008, -1/+8What's the slogan? "You ain't seen nuthin' yet" or something?

      /Takin' Care of Business?
    • RaulMuadDib, on 09/06/2008, -0/+19"I'm getting a dell [factory]"
    • eschompthis, on 09/06/2008, -2/+5Thats ***** ***** dell, never will I consider even buying one, only because i worry about the workers
    • ieatpizza, on 09/06/2008, -0/+3I'll buy the other 6
    • epmc, on 09/06/2008, -0/+1Bachman-Turner Overdrive?
    • h4mx0r, on 09/06/2008, -0/+1I plan on buying one for my newly formed BLT mega corporation.
  • cybrguy, on 09/05/2008, -8/+93Again, a large business eliminating decent paying jobs here in the US. HP already made this move. Its sad to see because its far more difficult to produce wealth with a service based economy compared to manufacturing based economy.
    • ryanonfire, on 09/06/2008, -0/+9"its far more difficult to product wealth with a service based economy compared to manufacturing based economy" I bet to differ, US services made up almost 70% of GDP while manufacturing only 12%. Source: http://usinfo.state.gov/products/pubs/economy-in-b ...
      • fluxion, on 09/06/2008, -2/+6to state that a service-based economy owes a larger percentage of its GDP to its services market than its manufacturing market does little to refute the point. was there something else in that article that did? i only have 4th grade reading skills in the morning.

        to me, one of the tough things about services is that it doesn't require as much manpower (compare number of IBM/Microsoft programmers to their marketing/executive employees, there are far more programmers, compare Ford factory workers to marketing/executives, same thing, etc.)
      • digudown, on 09/06/2008, -1/+3@fluxiob Actually in any tech product company number of sales, marketing etc personnel is almost twice that of engineering personnel. IBM is a service company and this ratio is higher for them. Besides programmers are providing services, they are not into manufacturing. So lots of your skills are at 4th grade level.
      • jabelar, on 09/07/2008, -0/+0Services only create wealth for a country if they can be pull in money from foreigners. Not everywhere can survive on tourism though and other services aren't always "exportable".
    • coldskool, on 09/06/2008, -11/+5Who cares.. ***** Dell. ***** corporate greed.
    • CosmicJustice, on 09/06/2008, -4/+13No! No! No!
      Again, US CONSUMERS eliminating decent paying jobs here in the US by buying cheaper foreign goods from countries where the workers are wage slaves.
      • noumuon, on 09/06/2008, -0/+8aren't workers anywhere wage slaves? i believe you mean slave wages.
      • chuckDontSurf, on 09/06/2008, -0/+5You're right. We should buy more expensive stuff on principle.
        How about this: we don't import stuff into the US unless the country exporting it can demonstrate they're treating their workers fairly? I know, crazy idea, right?
      • strangewill, on 09/06/2008, -0/+3Maybe that's because I have to bend over backwards to find an American product that is actually made to as good or better quality than that foreign product.
    • clsslc, on 09/06/2008, -3/+4Protectionist policies do more economic harm than good in the long run, and every market economist has been saying this for decades.
    • zeebo, on 09/06/2008, -2/+14If your company is failing the last thing you want to do is close your factories and fire your workers. When you outsource your products, what do you have left? What is your company at that point? Apple at least writes their own software even if foxconn makes their hardware. What is Dell going to do at that point? They get their operating systems from Microsoft, they're going to get their hardware from some no-name chinese company, what are they going to make? What value are they going to add as a collection of overpaid executives with a marketing department? Ten years from now, the company that's producing Dells machines will likely buy dell just for the brand name, that is if ***** all over their employees and destroying the communities where those factories are hasn't destroyed the brand.

      My advice to Dell: Fire the yes men and the worthless executives, have the ones who are left lower their own pay so that you can keep as many of your workers as possible, do away with the marketing department whose jobs are to con people into buying ***** products and work on coming up with something that can make money. Make a good product that differentiates itself from the competition and you'll make money. Its as simple as that.
      • StarlessKnight, on 09/06/2008, -0/+4Not going to happen. Too little, too late. Dell is a lost cause. What it use to be die long ago; they don't have the family community feel and the layoffs kill the desire to put in 110%. They're moving out to exploit the upcoming regions that aren't saturated with computers.
    • Lukesed, on 09/06/2008, -0/+7What is it about Americans that makes them think that they deserve to be payed more to do the same work than any other human that didn't win the geopolitical lottery at birth? The U.S. isn't special anymore, and it there is no reason for the rest of the world to keep propping it up. You can buy some time by restricting free trade, but will only stave off the inevitable and hurt us in the long run by cutting us out of the world economy.

      Take advantage of the educational system in your country. Get into a career that can't be outsourced, or don't cry when poor people from Asia get paid so they can afford to eat some beef once in a while instead of just rice, and you can't afford quite as large a plasma tv.
      • footfwd, on 09/06/2008, -2/+3Yea a country of over paid managers, that will keep your economy rockin.
      • jabelar, on 09/07/2008, -0/+0It's true that life ain't fair, but when life is in your favor there is no need to willingly give that up.
  • itignition, on 09/05/2008, -34/+170I think when a company moves, it should NOT be considered an "American" company. I think where your product is made should be the country of origin and NOT where the the head office is located. At least then the government could tariff and tax goods, and add incentives to keep people employed in the U.S.

    Well people.....you cant afford your house, and now say goodbye to your job.

    Dell = greed, and not community. Very un-neighborly and disappointing.
    • john1108, on 09/06/2008, -1/+68Did you see what happened to their stocks. They are doing this to survive in the market. People blame companies for shipping jobs overseas but they have to to compete. what can you do if all your competition gets cheaper labor than you and maximizes their profits only to reinvest and get cheaper labor overseas?

      Im just saying you should think about this in another perspective.
      Im not defending dell, just being informative.
    • gbhall, on 09/06/2008, -6/+29So Apple is Chinese by your logic, seeing as everything is "assembled in China", but, "designed in California"?
      • itignition, on 09/06/2008, -0/+5Apple should be considered "Chinese" company.

        I'm sure there is a perfectly good factory waiting to be populated in a good clean city, and staffed by perfectly proficient personnel who graduated from American schools and are currently looking for work in high tech.

        In my opinion, "yes" Apple do consider itself a bunch of Californians, but lets be realistic. 75% of the workforce has never been to the States, and for what they're paid, they never will...

        Just a note. "designed" means a small team. Like 5-7 people. Don't be fooled.
    • tnoy, on 09/06/2008, -5/+122Dell = A business.

      Dell isn't greedy, they're not the problem. Its the consumer that thinks the $299 PC is overpriced.
      • ryanonfire, on 09/06/2008, -2/+8Exactly. If you want dell to keep jobs in the US then give them a donation or STFU.
      • jazzguitar18, on 09/06/2008, -0/+5lol
      • TheGuruStud, on 09/06/2008, -8/+3Dell deserves to die. They're stock is falling b/c they make *****. They're only surviving b/c of marketing and the mass dumb asses that still buy it. This is a good move. Now, whatever quality might have been left will go down the toilet with dell's greed (b/c they will not pay anyone to do anything correctly) and further degrade what illusion of reputation they have left.

        I bought the Logitech z5500s from then when they had a retardedly cheap sale just so they would lose money.

        ***** Dull.
      • TheGuruStud, on 09/06/2008, -6/+1Ah *****, I'm so ashamed of the spelling mistake. Please forgive me :(
      • itignition, on 09/06/2008, -1/+2The PC is $299 because overseas electronic technology is currently not taxed or tariff prone as much as overseas parts should be.
      • danthepiercer, on 09/06/2008, -2/+1
        to say that the cheap plastic ***** is the problem is only seeing part of the larger pile of *****.

        corporate greed ---> american consumerism ---> ***** up trade policies ---> outsourcing anything and everything ---> loss of jobs/depression of wages ---> market for cheap plastic ***** ---> profit for greedy corporation ---> [repeat cycle].


        as i have obviously demonstrated, i am no economist...i do however see a real cycle of americans demanding as if it were a right, 'low prices everyday' and then bitching about how 'they took ur jobs!'.
        call it the Walmart Effect if you will...just dont pretend that the vast majority of americans dont contribute to this cycle of cheap, plastic, chinese *****!
      • NanoStuff, on 09/06/2008, -0/+1To be fair, it's such a consumer that allowed for us to have teraflop computers for a few hundred dollars. If people only have unrealistic demands, the market will be forced to provide unrealistically good products for unreasonably low prices. That doesn't necessarily mean you can cheap out on your computer, it also means you can get more computer for the same price. If you can get a silly fast graphics card for $200, buy two.

        Anyways, outsourcing services and manufacturing provides jobs to populations that need them more than we do. So called "greedy" companies are far better for the world than greedy nationalists that wish to only see the US prosper.
    • aliguana, on 09/06/2008, -3/+21Dell = a business, not a charity. Of course American companies should stay in America, British ones in Britain etc, but it's been going this way for years, and with the developing world getting more smart (via free laptops, school foundations etc) even more business is going to be going their way, not less.

      The thing is, they are adapting to the 21st century, while the people in the Western world aren't. We have to adapt our lifestyles, jobs, communities and expectations to match. Just saying "not fair" isn't going to cut it.
      • Waterrat, on 09/06/2008, -1/+3And just how do we do this?
        Gas prices and food prices keep going up,good jobs are shipped overseas leaving crap jobs ...How do we adapt to this?
      • bman1984, on 09/06/2008, -0/+3You have to be skilled in the jobs that are currently available. If manufacturing jobs are going overseas, then learn something else. The problem in American is the jobs are getting more and more demanding educationally. There are not as many blue collar jobs. SO GET AN EDUCATION! Do you really wanna work in a dell factory anyway?

        People are the real problem here.
      • vinnyvenus, on 09/06/2008, -0/+2You do this by getting a college education. Manufacturing jobs are mostly done by people who are not college educated, hence they are easily repacable.
      • strangewill, on 09/06/2008, -0/+1"The thing is, they are adapting to the 21st century"
        Yeah, by buying labor in 19th century countries.

        Hmm... Who isn't in the 21st century now?
    • Gripweed, on 09/06/2008, -3/+14Let's take it one step further. US goverment agencies should not buy products that are not manufactured in the US.
      I work in the DME (Durable Medical Equipment) industry. We can not sell a scooter or wheelchair to the VA (Veteran Administration) unless it has primarily US-made components (if I remember correctly it must be >75% content) and is assembled the US. This should be true for all government agencies.
      • aflaks, on 09/06/2008, -1/+5the government is strapped for cash (wars are expensive, and so forth), it will go with whatever is cheapest. This is a global economy now, a company with headquarters in America will be classified as American and be subject to pay US taxes. Declassifying the company as a foreign vestibule is about as stupid as can get at this point because not only will America lose jobs, but tax revenue as well.
      • geoken, on 09/06/2008, -0/+2Can you say for a fact that the tax revenues wouldn't be offset by whatever tariffs would be added?
      • else7en, on 09/06/2008, -0/+4corporation dont pay taxes silly
        they pay politicians
        more economically viable
      • MindStalker, on 09/06/2008, -0/+2Aflaks: geoken: If the US government buys US goods a portion not only comes back in the form of taxes, but what doesn't immediately come back in taxes much of it goes to US workers, who also pay income tax, and who also spend their money in the US. Keeping money inside this country helps the country as a whole, sending money overseas devalues out currency internationally and we lose out on jobs. Luckily much of this money comes back in other forms, if you look strictly at total $ value of imports and exports including services like lawyers we come out about even. But then you add the billions our government is shipping overseas for military and aid purposes we come out in the red.
    • jperson, on 09/06/2008, -1/+7Right isn't part of the problem here that the "cheap labor" is people slaving in horrible conditions? If effort were placed on improving their rights and quality of life, they wouldn't be taken advantage of, they'd cost more to hire, and the benefit of outsourcing lessens. I'm no expert but it seems like worker exploitation is the silent machine behind cheap outsourcing... ?
      • CosmicJustice, on 09/06/2008, -6/+2Yes it is. The US worker is the most productive worker in the world measured in goods produced per labor hour but still can't compete with a less productive Chinese worker who is only paid 30 cents an hour.
      • noumuon, on 09/06/2008, -3/+2"is people slaving in horrible conditions" no, not really. their conditions aren't much worse off than people here in comparable industries.
    • ForestRangerBen, on 09/06/2008, -1/+3So Apple is a Chinese company?
    • CosmicJustice, on 09/06/2008, -1/+3There are no significant import tariffs on electronics coming from Most Favored Nation exporters and none for NAFTA countries. It's a world market now. The goal has to be to raise living standards outside the US not to build an economic wall at the border that stops goods from coming in.
    • TVarmy, on 09/06/2008, -0/+3The big issue is that people aren't willing to search the label of what they're buying for country of origin and consider the political implications. We live in a consumer culture, where we expect a flood of cheap goods we can constantly buy without thinking. It will take a sea change in how people view their purchases to end outsourcing via market forces.
      • bman1984, on 09/06/2008, -0/+2Exactly. When you buy a product, you are essentially supporting every action of said company. You are agreeing with how they do business, and allowing them to continue. I have not bought a single item over $50 in the last 4 years without hours of research. How the company does business is one of the aspects you should look at before making a purchase.

        The vast majority of people do not care. They have better things to worry about, such as what britney spears had for breakfast. When did everyone become so disconnected with reality?
    • TremorX, on 09/06/2008, -1/+1Companies are being practically forced to do this to survive. I mean, some of the same idiots who go "OMG a $400 is just too much! I'll get one when they're $99" are the same ones who bitch and moan when "dey tuk urr JERBSah!" You want cheap ***** but you want it to be built where it's more expensive to produce it.

      The problem is that things have gotten too cheap, and aren't being charged what they're worth anymore. A low end computer only a few years ago was $1000, a mid range $2000, and a high-end around $3500-4000. Now it's $300, $700, and $1500, and you can thank cheap Chinese labor for that.
      • foolfoolz, on 09/06/2008, -1/+2Well not really. Chinese labor will allow to dell compete with cheaper companies, but you wont see a price change. They can't afford to just lower prices right now, just stay competitive.

        But for computer prices to go down like it did that didnt happen because of chinese labor. Everything has been made in china always. For those prices to go down it relied a lot on more and more computers being manufactured. Now there is a much larger market flooded with computers and parts to make them so the overall price goes down a lot.
    • notadiggtard, on 09/06/2008, -0/+1Be careful what you wish for.A huge number of our jobs are in EXPORT industries.When countries retaliate,boom-trade war that both sides lose.
  • stroger, on 09/05/2008, -6/+19very sad.
    • roxgod666, on 09/06/2008, -0/+2yes indeed, before it took them about 3 weeks to deliver your notebook because of all the delays. I really hope it doesn't increase.
  • broalexinfo, on 09/05/2008, -5/+43Bad news.
  • dupswapdrop, on 09/05/2008, -14/+36Hey dude am not buying a dell anymore. Let them sell their junk to China.
    • ryanonfire, on 09/06/2008, -0/+8They already do www.dell.com.cn
    • ForestRangerBen, on 09/06/2008, -2/+20You might as well stop buying any computer components, its all made in China, get over it.
      • TheGuruStud, on 09/06/2008, -8/+1WRONG.

        Taiwan, too. ***** country too, but a lot higher grade of components.
      • Ravatar, on 09/06/2008, -0/+2***** people who feel the need to blurt out "WRONG." in the most textually obnoxious way. Even when you're right, you still look like a pretentous prick.
    • ajde, on 09/06/2008, -1/+1I may have got an incredible deal on my laptop thanks to Dell's lower prices & an online coupon, but I've had so many problems with it. A friend of mine who was having his Dell fixed had to send it to a repair center twice - the first time they switched out the keyboard instead of the motherboard. Whoops. The second time they sent it back to the address that his SISTER had 3 years before, in CALIFORNIA. He lives in -Seattle-. Thank god the people who lived there were nice enough to figure out who it belonged to and sent it back, but it was a disaster.

      Now that it's going to be completely separate from the US, I can't imagine the kind of logistical nightmares that await the unfortunate Dell user. I won't be buying one again either.
      • newsound6, on 09/06/2008, -0/+1I used to build all my own machines until I was going into school a few years ago and needed a laptop. Decided to buy from Dell and I don't think I've ever dealt with a company more willing to help its customers. The laptop, Inspiron 9300, turned 4 years old last X-mas, 1 year past its warranty and the Cd-burner died and Dead pixel lines infected the monitor.
        I called Dell.
        They said my warranty was over. I said, "I know, but c'mon, you don't make the 9300 anymore and we both know you still have spare parts like a monitor and cd burner you aren't using for anything else" 5 minutes later I was talking to a manager to said he agreed, and sent me everything I needed, Free parts and free shipping.

        So happy with Dell cause of that I bought a XPS 730 from them 2 months ago. I had ordered a 32 in monitor to go with it, but the day the monitor showed up, I found a better deal on newegg. So I called dell, and they let me ship it back to them, for free. And they let me keep the price reduction I got for ordering the monitor with tower. So basically, I love Dell's service to death. *****, I've even lost my OEM DVD of windows, and they sent me another one, with a new license...........free.

        I know all the components were made in china/taiwan, but I was happy that some American in Austin TX was putting it together. So I guess unless Dell is able to really realllllllly able to reduce prices with this move, I think I'll go back to assembling my own puter for the next machine.

  • slugicide, on 09/06/2008, -7/+18I hope from that point forward they lose all tax exemptions.
    • Beautyon, on 09/06/2008, -2/+8Thats the kind of 'thinking' that sends companies running from america. Do you want Dell and other companies to operate in america or not?

      Punishing companies makes them move away; let me put it in terms you might be able to understand:

      The internet sees censorship as damage and routes around it.

      Business sees government, taxation, regulation and whiney, spoiled, over unionized workforces as damage and routes around it.

      All clear now?

      Dell is not evil, and neither should they be punished for moving away from environments that harm business.
      • JoeHammer, on 09/06/2008, -2/+5you're an idiot.

        If you take away thousands of jobs and send them overseas, you SHOULDNT get tax breaks. Taxes are supposed to go back into the ecomony and be used to help out our country. Why should a company get a break when they obviously only care about themselves?
      • itignition, on 09/06/2008, -1/+2Dell would not have made it out of the garage if they opened the business in India. They owe ALL the success to American citizens who supported them and helped them grow.
      • eRaptor, on 09/06/2008, -2/+2Let's be clear...the main reason companies are moving their operations offshore is to exploit cheap labor in other countries. Beyond cheap labor, moving offshore allows companies to pollute at will, circumvent labor laws intended to protect children and working class people against abusive business practices, circumvent U.S. law and avoid contributing to a society from which they derive the majority of their profits. Wondering how lead tainted toys showed in the U.S. again? You need to look no further than our trade agreements/WTO for the answer.

        Here's the catch that most of these companies miss...their current profits are based upon a consumer base which can afford their products. Once the American middle class has been decimated, it won't be long before these companies will fold as well. Now, there are some who argue that the rest of the world will pick up the slack. To that, I can only laugh. These companies didn't move to India, China, etc. for higher labor costs. They want poverty-level wages which can't sustain a healthy consumer market. In the absence of a substantial middle class/consumer market (either American OR global), these companies won't be able to sustain a significant profit margin.

        As for tax breaks, no company is ENTITLED to U.S. tax breaks, especially since they are contingent upon benefitting the U.S. What's Dell going to argue before the American people/government now that they've given them the middle finger with their business practices? Hey, what goes around, comes around.
    • else7en, on 09/06/2008, -3/+1bilderberg scum
      • BruceAnderson, on 09/06/2008, -0/+1And the computer you typed that on was built by whom, exactly? Magical elves living in a hollow tree? No. It was built by a CORPORATION. Get out now! The calls are coming from ETH0!!!
  • Pusod, on 09/06/2008, -15/+2Obama's not gonna like this when he becomes president. Dell will become the scourge of the computer industry if this happens.
  • gbhall, on 09/06/2008, -5/+39I always thought Dells were made in China! A company can't afford to keep its current prices when its cost of production increases, so I don't blame Dell for moving. Either that or do you want to pay the same prices as Macs?
    • aliguana, on 09/06/2008, -8/+2well, look at it this way: if Dell is seen as a "foreign" company, and because of shipping etc their computers end up costing twice as much, then you may as well buy a Mac. Even though they are made in China too.

      Apple have an opportunity here. If prices on Dell rise, Apple need to only cut their margins by 20% and they will clean up.
    • arjie, on 09/06/2008, -0/+31Dude, Apple makes its stuff in Taiwan after subcontracting to Asus.
    • themonkman, on 09/06/2008, -10/+4I have to say, if you take the specs of a Mac and build a Dell system on those specs, there will not be a huge difference in price.
      • arjie, on 09/06/2008, -3/+11Sir, that isn't true. On the low end, the Inspiron 13 (specced to the same as the macbook, some parts higher) is $170 cheaper. On the high end, the XPS M1330 (specced to the same, some parts higher) is $1,300 vs. the Macbook's $1,800 and the XPS gets you a GeForce 8400M GS.

        Ta-dah!
      • seltaeb4, on 09/06/2008, -7/+5But, with the Dell you have to purchase some sort of yearly anti-virus in order to have a hope in hell of maintaining the system, and you're STILL stuck with the craptacular Windows...
      • WoollyMittens, on 09/06/2008, -2/+3That was true a year ago, but not so anymore. Apple doesn't refresh their hardware as often as Dell or HP.

        But I like wearing Converse a lot more than Shoe-circus...
      • arjie, on 09/06/2008, -0/+2WoollyMittens: I just checked those prices right before making the comment.

        Seltaeb4: I use Avira Free, and I haven't had any trouble. Also, if you read monkman's comment you will find that mine addressed exactly what he said and nothing more. If you feel it is worth the premium, please go ahead. However themonkman's claim is still invalid.
    • ForestRangerBen, on 09/06/2008, -0/+5To Echo arje, apples stuff is also made in China man...
    • StarlessKnight, on 09/06/2008, -0/+1Dell Desktops were mostly built (pieces put together by people) primarily at ~three facilities in America. Most of the concentration use to be in Austin, TX (they've been moving that out for a few years now, redistributing to other regions in America for shipping and/or overseas to get into those markets). The parts themselves came from overseas, of course. Dell Laptops were made overseas.
  • HaoleTech, on 09/06/2008, -8/+6I don't like this. Dell has never offended me before this. Stupid, stupid people...
  • plagiats, on 09/06/2008, -10/+39Misleading title. When something is specific to the US please mention it in the title.
    • Philmer, on 09/06/2008, -0/+5Americans, you're not alone.
    • Th1rte3n, on 09/06/2008, -0/+4RTFA. It's not specific to the US, it just so happens that all of their factories are currently in the US. They're still selling most/all of their factories.
  • waspbr, on 09/06/2008, -6/+22big whoop, it would stupid for dell to keep manufacturing in the US at higher costs when the competition has already moved to cheaper manufacturing plants overseas... like apple, ASUS, IBMM and many others. lame article.
    • seltaeb4, on 09/06/2008, -1/+7Ironically, IBM doesn't make a single PC anymore. They sold their entire manufacturing operation to China, which renamed them Lenovo.
      • WoollyMittens, on 09/06/2008, -5/+3And see how well they did. The IBM laptop was a symbol of professionalism. Now the same Lenovo laptop it is a symbol of cheap chinese trash.
      • waspbr, on 09/06/2008, -4/+3or apple...
      • waspbr, on 09/06/2008, -1/+3so apple products are not made in china?
      • StarlessKnight, on 09/06/2008, -0/+1@Woolly: Um, did you use the T40, T41, and maybe T42? The T40 (granted, maybe just the order sub-tree of the T40 the company bought) had a design flaw that caused the video to go out some time after ~2 years. The 41 may or may not have had the same issue. The 42 was more or less good, but I wasn't around in the environment long enough to see it near end of life. The T43 was Lenovo and may have corrected the video card issue, but boy did the hard drive issues suck. May have been just a bad, large batch but... IBM was going downhill as they negotiated their stock away.
    • jstarlee, on 09/06/2008, -0/+2ASUS is not from America, they came from overseas to begin with.
  • over9k, on 09/06/2008, -13/+8This is good for the customers since it will mean lower prices in face of competition.
    • Spektr4, on 09/06/2008, -3/+6One thing you guys always miss: the American customer and the American worker are one in the same. Using your logic, can't we just ship every single job to China and win because everything will be cheaper?
      • clsslc, on 09/06/2008, -0/+4The majority of US jobs are in the service sector now, buddy, not in manufacturing, so manufacturing jobs can be shipped overseas while service-sector jobs stay. So no, most American consumers are not the same as the workers who will be affected by this. The majority of American workers do not work in factories. This transition to a service economy is good. Think about it. Knowledge workers (who are decent at their jobs anyway) are required to use their heads more and are less replaceable than factory workers. They also make a lot more money than they would if they were working in factories. So, once the transition has happened, Americans now make more money and have to spend less on consumer products. It is better for the economy. You have to think about the long run, and the incentives policies and decisions create going forward. Read an introductory economics book, like Hazlitt's "Economics in One Lesson" or Sowell's "Basic Economics" / "Applied Economics: Thinking Beyond Stage One" books.
  • Litespeed, on 09/06/2008, -0/+24Those of us outside of the US get our Dells from Malaysia so it's business as usual everywhere else in the world.
    • guardsman85, on 09/06/2008, -0/+2Every single Dell Latitude laptop I've seen come through our IT dept at work (in the US) over the last few years has been made in Malaysia.
    • clupean, on 09/06/2008, -0/+7I'm in Spain, and my Dell was manufactured in Ireland.
  • pantone287, on 09/06/2008, -10/+11What the hell is going to happen when we get into another global war? Having no manufacturing in this country is a disaster in the making.
    • waspbr, on 09/06/2008, -3/+23Don't get into a global war then
      • pantone287, on 09/06/2008, -12/+1Thanks for that mr. chamberlain.
      • pantone287, on 09/06/2008, -8/+2oooooo did I touch on a brit sore spot? I like it.
        He was the dude who single handedly killed the bowler hat
        as a symbol of competence and authority.
      • waspbr, on 09/06/2008, -2/+2hmmm, looks like someone forgot to take their paranoia medication...
      • Beautyon, on 09/06/2008, -2/+3Amen.
    • gl77, on 09/06/2008, -0/+6relax, there will always be meth labs.
    • twomeyw23334, on 09/06/2008, -5/+2We're still the largest manufacturer in the world, followed by Japan and then China.

      Plus, why offer another thing to freak out about? I think we'll all be dead due to man made global warming or the bird flu or the ever looming recession or the man made killer bees that have been migrating up the East coast and growing in population or terrorist or by George Bush. It's hard enough to sleep at night, I don't need to think about how our Dell factories could have been converted to aircraft carrier factories in the next world war, but.... not any more.
      • silviumc, on 09/06/2008, -1/+8You WERE the biggest manufacturer in the world. China has just overtaken you. This news was on digg a couple of months ago.

        And yes service based economy has no balls. Next thing your military will use rifles Made in China.

        Damn shame too, because we need the US as superpower. Or else we're left with the likes of China, Russia, India... No thanks, I'll pick the obnoxious US any second over these.
      • localzuk, on 09/06/2008, -2/+1The USA won't be the largest manufacturer for long - it is due to be overtaken by China next year.
      • twomeyw23334, on 09/06/2008, -2/+2No, we ARE the largest manufacturer. There was recently an article that claimed the year China is predicted to take us over has been pushed up. We still manufacture 20% of the worlds goods. There's no way you can convince me the largest manufacturer in the world, or even the 2nd or 3rd largest, is purely a service based economy, and will be screwed when it comes to war time.
      • localzuk, on 09/06/2008, -0/+1Last figures I saw were USA = 17% of world manufacture, China = 16.5% of world manufacture - this was in the Financial times on August 10th.

        The swap is likely going to take place over the next year.
      • twomeyw23334, on 09/06/2008, -0/+1Then we are totally screwed!!!!!
      • kthoma22, on 09/06/2008, -0/+1Actually all products for the US military are made in the United States. I worked at a defense contractor and can tell you from experience that DOD has a very strict policy about everything being made in the US and only by US citizens Hell even talking somewhat a product with someone who is not even a US citizen can be considered an export and you could be arrested if the product has an ITAR restriction which is almost everything even the non classified stuff. The US is still going to continue to be a huge producer of arms for most of our allies as well. Mos of Europe, Pakistan, Israel, India, Egypt, Australia, Japan, and now Iraq spend billions to buy products from US defense contractors.
    • ThaDRD, on 09/06/2008, -4/+2China needs our money, and we need their cheap labor. It's a mutual agreement that works even if they hate each other. They need each other to survive.
    • drlha, on 09/06/2008, -0/+4Dells factories only assembled the computers, all the parts bar the CPU came from China and Taiwan, so if we're cut of from that supply we're pretty much ***** anyway.
  • kishosingh, on 09/06/2008, -2/+2What do you think, it is not market collaborations? Big companies are collaborating or really it is market inflation?
    • waspbr, on 09/06/2008, -1/+2moving from a high cost manufacturer to a low cost manufacturer is called market creation, the opposite is called market destruction... nothing new there
  • PhilMoskowitz, on 09/06/2008, -0/+9Another 2 years and they'll be rolling up the highways in the US.
    • P0peRatz0, on 09/06/2008, -4/+4Only if McCain/Bimbo 08 gets elected.
    • Beautyon, on 09/06/2008, -1/+5They wont 'roll them up' they will keep them in place, put tolls on them and make you pay. Im not joking, its already happening:

      http://www.google.com/search?q=us%20toll%20road%20 ...

      !!!
    • Ch33t0, on 09/06/2008, -0/+1It is already happening in Houston I-10 now has a toll road owned by Spain.
    • StarlessKnight, on 09/06/2008, -0/+2The most recent, three major highway additions have been toll roads in Austin, TX. Mo-Pac and 45 (between Round Rock and Pfluggerville out to Cedar Park and curve down toward Austin at its midpoint), 183A (straight through Cedar Park), and 130 (just north of Georgetown down to just south of Austin when completed). Haven't heard they're owned by outsiders, but they sure do love taking photographs of every car that pays by TxTag or Cash.
  • muya, on 09/06/2008, -1/+8Actually a lot of Dell's laptops are made in Ireland.
    • alphaterminus, on 09/06/2008, -3/+6That explains why they fall apart or burn up so often, everyone is drunk.
    • mnpilot, on 09/06/2008, -1/+5All laptops are made in four factories in Taiwain. And I mean ALL no matter what brand.
      • distrachi, on 09/06/2008, -1/+0Wrong, China surpassed Taiwan in notebook PC production about four years ago.
    • someone173406, on 09/06/2008, -0/+2Mine's from Malaysia...
  • AndrewDB, on 09/06/2008, -6/+3Their PCs I could care less about.. their monitors, on the other hand, I care greatly about. I have a 24 inch wide screen dell and a 20 inch standard (couldn't afford another wide screen) and they're the best monitors money can buy..
    • ThaDRD, on 09/06/2008, -0/+5Dell has never made their monitors in the US. They have always come from Mexico, China, or Malaysia
  • secondfiddle, on 09/06/2008, -5/+5Dude your getting a labor abused hamster cage Dell.
  • Gripweed, on 09/06/2008, -11/+13Very simple. If you take away jobs from the US I will not buy from you.
    • tomis, on 09/06/2008, -0/+12So who will you buy from. Seriously.
      • j3ff86, on 09/06/2008, -0/+1Newegg?
      • G001, on 09/06/2008, -0/+2Systemax. They have build to order too. http://www.systemaxpc.com

        Of course, they're still using the same components made all around the world like everyone else is, but for what it's worth they keep manufacturing and tech support in the US.
    • jec68, on 09/06/2008, -7/+6How is it justifiable to care about complete strangers who are white over complete strangers who are black?

      It isn't justifiable.

      How is it justifiable to care about complete strangers who live in Texas over complete strangers who live in China?

      ...
      • TVarmy, on 09/06/2008, -0/+4The OP seems more concerned about labor and the US economy. It could also be argued that since the US has a higher minimum wage, it means the domestic workers are better treated, meaning on a job-per-job basis, you create more good jobs in the US. Also, higher environmental standards mean that the US factory will be run cleaner. I'd say race/ethnicity don't play a big role here.
      • Bkaufman, on 09/06/2008, -0/+1Because most people don't hate their own country.
    • Balanced, on 09/06/2008, -0/+2Weren't Dell's plants basically assembly lines anyway? Very little PCB production, at least on a large scale, is done in the US anymore. It's too expensive due to our environmental concerns. China is much more relaxed... Something that will likely be a problem there in a few decades when farmlands stop producing.
    • aflaks, on 09/06/2008, -1/+5the world is shifting towards a global economy, get used to it. American car companies are just about gone, budweiser is now a european product, McDonalds (about as american as you can get) gets a huge portion of its sales from europe and the rest of the world, etc. You dont want to buy unless its 100% American? You have very little options my friend..
    • alphaterminus, on 09/06/2008, -1/+3I tried this in the 90s, when I realized shopping for things not made in China was nearly impossible. Wal-Mart not withstanding.
    • ForestRangerBen, on 09/06/2008, -0/+7You won't be using a computer for very much longer sir.
    • Beautyon, on 09/06/2008, -1/+2Its your government that is taking jobs from the US you silly goose. What are you going to do about that?
    • Tribis, on 09/06/2008, -0/+2The jobs they are taking belong to the company.
  • xatx3, on 09/06/2008, -10/+5awesome, ***** dell
  • BDOUG, on 09/06/2008, -8/+34America: land of fast food joints, a shortage of health care workers, an abundance of ignorance, and a surplus of bitching cubicle denizens (incl me). It's gonna have to get a lot worse before we get off our asses and make it get any better. Only after China et al have totally kicked our asses economically will we wake up and start making durable goods again, and return to a little more self-sufficiency. Smart countries manufacturer some things and trade for the other things they don't want to (or can't) make. Seems we don't make much of anything any more. We shuffle documents and data around and call it work. Broken window fallacy has become TPS report fallacy.

    People blame the unions but the unions were in response to a very real problem back in the day and it worked well for a period of time. Sadly that solution has fallen victim to the inevitable corruption. Worse, it has not kept up with the technology and tactics of the modern Robber Barons who use H1B's and off-shoring to artificially suppress worker wages and inflate executives' wages. The union idea needs to be abandoned (or at least rebooted) into something new. Something that organizes working class people not only on the labor side but also on the consumption side of the equation. We need to make products and provide services for ourselves first, and only trade for them as a secondary channel. Isolationism is not the answer, but going the other direction and giving it all away to other nations is economic suicide.
    • Bamont, on 09/06/2008, -1/+2Just going to jump in here on your tirade.

      First and foremost - the American way of life is far superior to the Chinese way of life. A majority of people there make less in a week than what you make in 1 hour of work. So while the economy in China might be booming - the main people benefiting from it are either American, European, or Middle Eastern (all countries that have a lot of investments in China.)

      You can't get up and "change" anything - because this is business. It's a business move on Dell's part. In order to compete in the market, they have to ship their production overseas.

      I will tell you, though, that my biggest gripe with Dell (I purchased my mother one for Christmas one year) is when they out-sourced their customer service and it became impossible to get anything done or understand the person on the other end of the phone. After that, I swore off ever doing business with them again. I can only imagine how many people here in the United States felt the same way (out of everyone I talked to - that was always the biggest gripe).
      • shig, on 09/06/2008, -1/+1"You can't get up and "change" anything - because this is business."

        You'd be surprised how much a 10%-20% tariff can change things.
    • jdepp, on 09/06/2008, -0/+1Corporations are not interested in what is good for society, the economy, or their own long term survival, or if they are, only to the extent it can boost this quarters earnings on paper, including accounting fiddles.

  • localzuk, on 09/06/2008, -6/+28Wow, a lot of people don't seem to understand market economics. Dell is losing money. They legally have to do something about that, and cutting costs by outsourcing is the way they can do it. If they don't, the company directors can be liable to being sued by shareholders. Another possibility is Dell not continuing to trade, as they would simply not be making a profit, and would end up running out of money. So in that situation, they'd have no employees and not be taxable... Which solution is better?

    The USA will still be making massive profit from this, in the form of taxes. So, stop your whining and learn a bit about business before you do it again.
    • demonicume, on 09/06/2008, -5/+9"The USA will still be making massive profit from this"

      so after they lay off an entire town, to whom should these checks be posted? the USA doesn't make a profit. lets see how you feel when all thesed people hit unemployment and medicare.
    • JStraum, on 09/06/2008, -4/+5Apologies for being "whiney" but let me get this straight, the legal solution to not making a profit is to ship jobs out of the US? Sounds like those laws need to be changed right? My family understands market economics completely - I got my understanding in 2003, and my wife just got hers this year in February. Now, together, we make 65% of what she alone was making alone 8 months ago. Our daughter gets to see one of us at a time even though we all live under the same roof. Thank god for daycare parenting. Family values my ass. In a jamb? Just go out shopping, right? Who can we sue?
    • secondfiddle, on 09/06/2008, -4/+8Honey you lost your job after they closed down the Dell factory, how will get by? Simple honey, the massive profit in the form of taxes will sustain us!
      • Bamont, on 09/06/2008, -5/+3Perhaps you should have acquired an education that held some value - then you would have a career to pursue, not a job.

        Fact is, factory jobs here in the United States inevitably close - so people who enter them with the idea of retiring doing the same job day in and day out are just stupid.
      • secondfiddle, on 09/06/2008, -2/+2You make a valid point not including your head shape. Shame on you and Karma up pal.
      • mikeywings, on 09/06/2008, -0/+0"Dell is losing money. They legally have to do something about that..."

        What? They don't have to "legally" do something about that. I've never met the "profit police" before. What do they wear? Beanies with calculators? Is their weapon a number 2 pencil? This is America, it's survival of the fittest (corporate-wise, not health) so if Dell doesn't adapt, they'll be out of business. And, no, there won't be prison time for anybody.

        And, if you looked up Dell's 10-K, you will see that Dell paid 880 Million in federal income taxes last year! So, yes, they're paying plenty in payroll taxes, but a whole lot in income taxes.
      • localzuk, on 09/07/2008, -0/+1Actually, yes, the law does require corporations to increase their profits. That is one of the requirements of being a corporation - do some research mikeywings.
    • dalittle, on 09/06/2008, -3/+3Dell is loosing money because their products are not as good as their competitors. Dell is loosing money because their Customer service is not as good as their competitors (ironically because they moved it to India). I don't think they will stop the slide in their earnings by cost cutting. Motorola tried this an now they are less than half the size they were. It is a short term strategy that wall street likes, but it never works.
      • bratterscain, on 09/06/2008, -3/+3*lose*

        Please don't let me be the grammar nazi enforcing this on digg every time I'm here. Though I think it's inevitable.
    • Disregard, on 09/06/2008, -0/+2You don't seem to understand that most major corporations pay little or no corporate tax through a myrid of tax evasion schemes. Around 60% of the top 100 US companies paid ZERO corporate tax last year.

      Most tax revenue from a company like Dell comes from wages paid. Until they move to Mexico that is.
  • gozroth, on 09/06/2008, -1/+3I don't know if this is really the case but if you visit Austin it seems like half the city is employed by Dell (directly or indirectly) in some way. sucks for them.
    • Pic0, on 09/06/2008, -0/+1The buildings in Austin are office buildings. I don't think there is a factory here.

      There are also many more big companies here in Austin not just Dell.
    • dafragsta, on 09/06/2008, -0/+1I would say you are wrong about that. I'd say there ARE a significant portion of Dell employees here, but Austin is like San Francisco in Texas. (In every possible way, for better and for worse.) There are TONS of tech companies here. The biggest are definitely Dell, AMD, National Instruments, Apple, Adobe, SOE, Blizzard, HP, 3M, IBM, Freescale, etc. and actually the job market here has favored employees for 4 out of the 6 years I've lived here. Virtually every one of my friends here works at a tech, media, or advertising company and I only know two people who are at Dell. Dell has a reputation for being a ***** cutthroat place to work, so why work there if there are better jobs in the same town.
    • TheLoneHoot, on 09/06/2008, -0/+1I work for Merrill Lynch - virtually ALL of our PCs are Dells. Funny thing, IBM has the hardware support contract!
  • prgmctan, on 09/06/2008, -1/+9Logo looks like a frowny face.
  • AussieVesti, on 09/06/2008, -3/+5If Dell doesn't do this, they won't be able to remain competitive. The elimination of costs allows focus on other factors within the business with will help grow sales.
    • StarlessKnight, on 09/06/2008, -1/+1And what remains of what makes Dell Dell will be lost. The community, the atmosphere, the desire to actually give a damn... gone. It's already on the edge. If this news is accurate then it will be destroyed. They'll be nothing more than just another computer manufacturer that may or may not have cheap prices with a cheap product.
    • jdepp, on 09/06/2008, -1/+1Dell is doing it because they aren't competitive.
  • tomis, on 09/06/2008, -1/+10Wow. It's rather impressive that they've gone this long without doing this. You have to give them props for that.

    Granted, if they could get enough people to work for $0.50 an hour they could keep the jobs here. But I suspect no one would take them up on it, let alone minimum wage laws and such would prevent it anyway.
  • Ghoztt, on 09/06/2008, -1/+5Anyone else just hear something pop?
    • sting87, on 09/06/2008, -3/+2that was the fuse on my dell laptop, sorry
    • else7en, on 09/06/2008, -0/+3hey fishbulb he was talking about artificially created economic bubbles
    • Tribis, on 09/06/2008, -0/+2Your sister's cherry?
  • Farmer77, on 09/06/2008, -3/+3Yikes. Glad I bought my dell laptop in January then. It won't surprise me if Dell workers begin _purposely_ doing a half-ass job to spite the company before they lose their job oveseas.
    • Balanced, on 09/06/2008, -0/+1Others in the thread have mentioned that most Dell laptops were built overseas already.

      THe 'build' step for your laptop was likely pulling one out of the box, installing a few components you requested, and repacking it to ship out.
    • StarlessKnight, on 09/06/2008, -0/+2Won't happen. I've worked at a manufacturing plant in Austin. Would require that the visual inspection failed (possible, of course) and the burn process neglected to note something was amiss because of sloppy placement or accidental/intentional damage. Granted you may get a BSOD on first start because of hardware failure, but all machines are burn-tested before shipping so the most obvious errors are caught and that BSOD could have been a result of shipping damage. Plus, if they did do substandard work that worker would be found (and they can) and fired. The damage they'd cause wouldn't last long, they'd hire someone else and that person, being temporary, wouldn't care about making a statement anyway.

      And like Balanced said, their laptops are made overseas already. Only Desktops were assembled in America.
  • iLemon, on 09/06/2008, -3/+1That sucks. The place I work now is located very close to a Dell manufactoring facility. We order computers and they show up after one or two business days. I bet it will be a week or more now.
  • Niz1, on 09/06/2008, -3/+8Some of the comments here are ridiculous, do you know why companies do this? clearly not. I'm surprised they have been manufacturing in the US all this time and offering the prices they do!
  • samimnot, on 09/06/2008, -3/+4Dell really has no choice...they have to do this just to remain competitive. Their 20 year old "business model" was what made them back then...but it's costing them Billions now.
    Sadly, a few thousand Americans are losing good paying jobs because of this.
    Ironically, China is becoming the richest nation in the world (by paying their employees 10% of what we do) and the US is becoming the nation with the highest unemployment rate in the world.
    • jec68, on 09/06/2008, -2/+3Uh, China isn't even close to being the richest nation in the world - that is unless you are looking at gross GDP - but you are probably too smart to be doing that.
      • samimnot, on 09/06/2008, -0/+1lol jec...learn to read and/or don't take things out of context, when you decide to comment. I clearly said "becoming" as in the possibility of that happening.

        But you are probably to smart to be doing that...
    • WoollyMittens, on 09/06/2008, -3/+2Apple charges twice as much as Dell for about the same kit and they are doing just fine.
      • samimnot, on 09/06/2008, -2/+0Compare equal systems...Dell is not that much less / but with that price, comes less quality components and software.
      • yogiincork, on 09/06/2008, -0/+2yes, but Apple outsources their hardware manufacturing as well (eg. to Foxconn)
    • biogears, on 09/06/2008, -0/+2Fact check: The US is NOT becoming the nation with the highest unemployment.

  • seltaeb4, on 09/06/2008, -5/+13Gee, with all the money Dell will be saving by moving their factories overseas, I guess we'll all be seeing tremendous price cuts on their computers passed on to us, right?

    Corporations are not your friends.
    • TheLoneHoot, on 09/06/2008, -1/+2A ***** men
    • Tribis, on 09/06/2008, -1/+3It is not their job to be your friend. They are here to offer you a service and/or product.
  • WoollyMittens, on 09/06/2008, -2/+8Selling your economy to China, so a few men can have really big yachts.

    Manufacturing everything overseas creates a horrific trade deficit. How is the US going to make up for that? Selling "Intellectual Property"? Don't be naive. The people you propose selling your ideas to, are not stupid natives. They are fast becoming just as intellectual.
    • Beautyon, on 09/06/2008, -2/+3Jealousy politics dontt make jobs appear out of thin air.

      Dell is moving because the business climate is bad for them. You should be thinking about the real reasons why so many companies are leaving the usa and outsourcing, and stop your sour grapes whining.
  • BobbyMC, on 09/06/2008, -4/+13Wonderful, my dad jobless is exactly what my family needed. We're *****.
    • ForestRangerBen, on 09/06/2008, -15/+1Advice Dog Says: Kill Yourself to Help Your Family
  • jec68, on 09/06/2008, -3/+4Thank goodness Dell is creating computers for less money. This will be good for buyers of computers and the shareholders of Dell.
    • Waterrat, on 09/06/2008, -0/+3 Nope,it won't be great for buyers of computers,as they won't cut prices.It will be great for the shareholders,middle management and up..
      • StarlessKnight, on 09/06/2008, -0/+2Mostly just the "up." Middle management will be slashed if they close manufacturing plants. Condensed so there's more work on less people so there's less need to pay more for the same work even though they'll doubtlessly overwork that poor person and they may begin looking for a job that doesn't abuse them so callously.
  • kc9ews, on 09/06/2008, -4/+6Great.... more US job losses
  • moracity, on 09/06/2008, -11/+9They anticipate Obama in the White House. This is what happens when the presidential frontrunner says he is going to raise taxes. Minimum wage also went up a month or two a go, causing a recalculation in all union wages. A one dollar increase in min wage can result in up to a five dollar increase in a union wage. Salary budgets don't increase out of thin air, so unemployment rate increases.

    One day people will understand again that increasing taxes on businesses encourages them to move out of the U.S. We have the 2nd highest corporate taxes in the world. This is the reason manufacturing moves overseas. When taxes go up, prices go up and sales go down. In order to keep prices down, manufacturing has to move somewhere cheaper to produce in order to keep consumer prices down.

    Companies produce goods in order to make a profit, not out of the goodness of their hearts. If the government removes ability to make money, there is no incentive to keep producing. Companies will move to another country or close. This is common sense and you don't need to be an economist to understand it. Business is not that complicated.
    • MagnumX, on 09/06/2008, -0/+8I beg to differ, for the last two decades this is what coroporate executives do when they won't make $15 million this year plus a bonus and instead will make only $7 million or $8 million. This is absolutely core to our problem. American companies are being robbed blind from the inside by the executive leadership. The higher the profit posted, the bigger the bonuses, the better the stock price, the better the additional stock price bonuses...When does the madness end? Do these people do anything that justifies their cost to the company? What do they produce? Look at the number of vice presidents in some of these companies and the the staggering number of associate or assistant vice presidents.

      What happened to re-investing in the company? It went away to make room for bigger salaries and bonuses.

      What happened to the pure research that made Bell Labs, GM, Texas Instruments, IBM, and HP the core of American industry and technology development. Pure research couldn't be tied to a "profit motive" or it wasn't entirely clear you would make money on some ideas, so it got axed.

      Taxes are not the issue...business making money is not the issue...who benefits to the detriment of their companies and the rest of us, that is the issue. So, this isn't about Obama or even about McCain, its about poorly regulated and corrupt management that doesn't do right by their stockholders, their workers, their companies, or their nation.
      • FREETHINKER2008, on 09/06/2008, -0/+2I call it corporate greed.
      • Waterrat, on 09/06/2008, -0/+1Agreed.It's the fat cats at the toip making oobscene saleries at the expense of everyone else...All the money gets sucked up to the top few...It did not used to be this way...It's just depressing.
    • cheesypasta, on 09/06/2008, -0/+2Obama:

      End Tax Breaks for Companies that Send Jobs Overseas: Barack Obama believes that companies should not get billions of dollars in tax deductions for moving their operations overseas. Obama will also fight to ensure that public contracts are awarded to companies that are committed to American workers.

      Reward Companies that Support American Workers: Barack Obama introduced the Patriot Employer Act of 2007 with Senators Richard Durbin (D-IL) and Sherrod Brown (D-OH) to reward companies that create good jobs with good benefits for American workers. The legislation would provide a tax credit to companies that maintain or increase the number of full-time workers in America relative to those outside the US; maintain their corporate headquarters in America if it has ever been in America; pay decent wages; prepare workers for retirement; provide health insurance; and support employees who serve in the military.
  • jperson, on 09/06/2008, -2/+5Duude.. you're gettin' a-- HEY WAIT COME BACK HERE
  • ashrric, on 09/06/2008, -1/+2Interesting move considering the low value of the Dollar.
  • Roguecop, on 09/06/2008, -2/+3Dell has already shuttered it's Mort J Topfer building where their central and west cost PC manufacturing happened. Apple outsources all their product manufacturing and are very successful with it. However Dell does very large server business. I can't imagine them outsourcing those very unique server blades at least not in the near term. I don't think the client would appreciate that, knowing if their server farm goes down they could lose millions in revenue.

    I also wonder how this is going to affect their 'build to order' model. Already they have cut down on the variety of options available. I can't see some Chinese manufacturer being able to cope with the 'build to spec' model where you could have hundreds of different configurations possibilities. Could they handle even just dozens? Dell has a very unique system, whereby the parts set in trucks and are only purchased as they are needed. Dell only actually owns those parts for about an hour. So they aren't having to warehouse unneeded components. How can an outsource company handle this model AND manage to ship to foreign markets a world away? I don't think consumers used to configuring their own PCs and laptops are going to like their configuration options drastically limited or going away altogether. Especially when HP still offers those robust options.

    Dell's executive brass could be shooting themselves in the ass in order to appease stakeholders.
    • ForestRangerBen, on 09/06/2008, -1/+1HP is based out of China, so why should Dell have a hard time?
      • Roguecop, on 09/07/2008, -0/+11) HP is headquartered in Palo Alto and Houston. 2) HP continues to manufacture it's own products.

        You're probably thinking of Lenovo.
  • fatfreddyscat, on 09/06/2008, -1/+3Just trying to keep up with macs made in china and the Czech republic
  • jabela, on 09/06/2008, -1/+2Guys I don't think they are out-sourcing... They are moving more of their production to their cheaper plants overseas and as somebody who lived in Malaysia for four years, trust me they need the money too...
    • fr0mundacheese, on 09/06/2008, -5/+4***** you and ***** Malaysia.
    • alphaterminus, on 09/06/2008, -3/+2And ***** Kurdistan!
    • StarlessKnight, on 09/06/2008, -0/+1That would be out-sourcing. "In" is America. "Out" is everywhere else. Malaysia, Ireland, Brazil... those are "Out" with "Out" employees and a few American Management personnel milling about.
  • afflusso, on 09/06/2008, -14/+8Expect more of this if Obama wins.
    • mnpilot, on 09/06/2008, -4/+11Another un-educated, fear related statement. How about thanks to Bush for sending a Trillion dollars to Iraq, high gas prices, and only giving tax breaks to the top companies who in turn send jobs overseas. Get a clue.
      • Beautyon, on 09/06/2008, -4/+6No, YOU get a clue, and stop conflating.

        'Sending money' borrowed from China and Japan to Iraq has nothing to do with bad business conditions in the usa. You obviously have no idea about how the war is being financed; this proves that you are just a clueless Obomba drone.

        You Obomba nuts are the most ill educated people in the usa; you know nothing about economics and have a wishful thinking powered view of the world. Even when someone says something that seems odd 'they are running away from Obama' you dont do a double take and try to find out WHY they are saying this. The fact of the matter is Obama will be bad for business if his policies are carried out in anything like the way he has hinted at in his website.

        You, like him, seem to think that there is a magic money tree in the white house where the cash for your universal health care and every other promise he has made will come from. In fact, you are right. There IS a magic tree; it is called The Federal Reserve, and it is that tree that is flooding the country with cash, causing the dollar to crash.

        But that's probably too much information for you.

        The companies who do not want more regulation, more taxes and more socialism are leaving america, like Dell is. They will not be the last, and they will not come back unless the government gets out of the way.

        No doubt Obama is planning some legislation to stop companies from outsourcing or relocating. Why take the risk? Better to leave now before he locks everyone in.

        That is what Dell are thinking. Every other manufacturer of computers is leaving or has left; only a loser is the last one to leave the party.
      • mnpilot, on 09/06/2008, -3/+5Wrong, and I certainly am not going to spend a long wasteful post on someone with your little knowledge. Arrogance leads to ignorance.



      • afflusso, on 09/06/2008, -2/+3I never said Bush was god or that we should be wasting money in Iraq. What makes you think Obama will be able to lower gas prices AND promote environmentally friendly energy? Do you really think that big corporations pay less in taxes than small businesses?
      • TheLoneHoot, on 09/06/2008, -0/+1"There IS a magic tree; it is called The Federal Reserve, and it is that tree that is flooding the country with cash, causing the dollar to crash."

        Is that the same magic tree BushCo are using to fund the war and the Fannie Mae bailouts?
    • ForestRangerBen, on 09/06/2008, -4/+4Exactly, why stay in America if your going to get taxed out the ass? ***** that they'll move to China.
  • KDX200rider, on 09/06/2008, -4/+4This sounds to me like a very bad idea, short term thinking. How many companies moved their support overseas and saw the quality go down the toilet (HP anyone).
  • Vodd9, on 09/06/2008, -5/+5Looks like we have a new company to boycott.
  • MagnumX, on 09/06/2008, -2/+17To those who keep saying that we should move away from a manufacturing economy I offer the following:

    1) You can't have an economy that doesn't produce anything. If you are always a "supplier," "speculator," or "middle-man" someone will always find a way to go to your source or a similar one and cut you out of the supply chain at a lower cost. Successful economies produce things, and that means manufacturing.

    2)The growing markets in asia are an opportunity to sell goods manufactured in the United States to new markets. If these new factory workers that are producing and competing with our workers are developing disposable income, it would seem that new and innovative means of manufacturing here in the US could produce products they would find attractive. Lets do our market research and compete.

    3)Wars are won by manufacturing (not to denigrate troops, but troops need supply). Its an uncomfortable reality that wars are part of our greater economic picture, but security, economy, and manufacturing are closely linked. Its no accident that during the cold war Soviet missiles were targeted on Detroit, Peoria, Cleveland, etc above some military targets. They understood that american manufacturing was their biggest threat in a prolonged conflict (and they should know since we supplied ourselves, the free French, the British, and the Soviets in WWII).

    4)Overseas outsourcing only has one logical conclusion if it continues at this pace. As the overseas markets mature the managerial positions currently outsourcing jobs will themselves be outsourced. These nations are not in this for free they want their own middle class and their own prosperity and they have lots of educated people willing to be an accountant or account manager for less than the accountant or account manager currently suggesting moving operations over seas. Some will say but American stockholders will still benefit, so at least the ownership will not be outsourced. Sure, until you see point 1 above. Sooner or later someone will cut you out of the market becuase when your entire company is outsourced you now longer add anything to the process and are now expendable, owner, stockholder, or not.

    So, don't let America go the way of the British Empire. Invest in high-tech American manufacturing and get those goods over-seas into those developing markets. Reverse the trade gap, create jobs, and innovate instead of outsourcing our future.

    • clsslc, on 09/06/2008, -0/+3'You can't have an economy that doesn't produce anything. If you are always a "supplier," "speculator," or "middle-man" ...'

      This assumes that we are a "supplier" or "middle-man". This is not a problem because we don't have to be involved in the supply chain whatsoever.

      "The growing markets in asia are an opportunity to sell goods manufactured in the United States to new markets. ... Lets do our market research and compete."

      We CAN do the research and design new products. It will still be cheaper to manufacture these designs overseas. Improving manufacturing processes doesn't compensate for the fact that our workers are paid wages of another magnitude compared to what people are willing to work for overseas. And we can still distribute and sell the products overseas. Manufacturing the products somewhere other than in the US doesn't somehow mean we can't sell the products to other countries to these up-and-coming nations with more disposable income.

      "Overseas outsourcing only has one logical conclusion if it continues at this pace. ... managerial positions currently outsourcing jobs will themselves be outsourced"

      Oh, come on. This is just hogwash, unless these managers are part of a manufacturing division, and in that case, it's no biggie because it doesn't make sense for them to be here.

      Protectionist policies hurt us economically in the long run. It's easy to want immediate gratification by keeping some jobs here, but in the long run it will mean a transition to a service economy, where people are paid more and are less dispensable.
      • MagnumX, on 09/06/2008, -1/+5To be fair you still haven't explained how you can have an economy that doesn't produce anything and be posperous over the long-term. If we aren't a supplier, a speculator, or a middle man...what is our role?

        As for your hogwash statement, I think you have completely missed the point. China graduates more engineers in a year than the United States has in engineering school. If you think the white-collar jobs like management, marketing, and sales aren't starting to be outsourced you are serioudly mis-informed. Caterpillar Inc. for example ships many engineering jobs overseas to a third shift engineering group in India. So, if there's hogwash here, its rolling down hill and all over your argument.

        I'll go find Sowell's book, but I've read most the pro-market arguments out there. The problem with most of these pro-market theories is that they assume that markets effectively regulate themselves to avoid the disrupting the societies they exist in. This is at best a historical fallacy and at worst a complete fabrication. See the Great Depression, WWII, and the British response to to the Irish potato famine for proof of that.

        Markets have power, but only the power societies give them, I suggest we drive ours towards building our future rather than somebody else's.
  • geogeer, on 09/06/2008, -3/+12The problem is not Dell, it is us. Are you willing to pay 50% more for a machine made here vs. China? If you are not willing to spend more for something manufactured here then you have no right to complain when factories here shut their doors and move to China.
    • itignition, on 09/06/2008, -1/+2Actually, I disagree with you for one point. We could all afford 1k computers if we had good paying jobs.
      We need cheaper markets because citizens still cant make enough money because of job loss.
    • TheLoneHoot, on 09/06/2008, -0/+2Actually, I might be willing to pay 50% more for a PC made here if there were some way I'd know that that company and the local economies it supports would stay here. Unfortunately, there's no way to guarantee something like that - the nature of a corporation is to care only -ONLY- about the bottom line. So if protecting that bottom line means promising one thing and then doing another, they'll do it without blinking an eyelash.
    • duggdowncatisad, on 09/06/2008, -0/+1Good point. Most people here are using price watch to find the computer that costs $1336.72 instead of $1337. No one's paying 50% more for some touchy-feely "made in america" label.
    • whatwhatwhoa, on 09/07/2008, -0/+1I don't think dell computers will be any cheaper. China also has a track record for making cheap electronics.
  • martoq, on 09/06/2008, -6/+6They should lose government contracts over this.
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