Dell outsourcing ain’t exactly a taste-tempting treat

Dell plans to make fewer computers itself and rely on contract manufacturers to cut costs, but the company could find it hard to get rid of its North American factories at a good price. The world’s second-largest PC maker said it would outsource more manufacturing, and the Wall Street Journal reported that Dell was trying to sell most of its factories within the next 18 months.

Analysts said the most likely buyers of Dell’s plants are big contract manufacturers, most of which are based in Asia because production costs are lower there.

They questioned how much cost savings Dell can get, since it would likely have to give the buyer of its plants an accompanying personal computer manufacturing deal…

Some 58 percent of Dell’s 5 million square feet (465,000 sq m) of manufacturing and distribution space is in the United States, according to regulatory filings. Twenty-two percent is in Asia and 20 percent is split between Ireland and Poland…

Dell declined to comment except to reiterate that the company has eyed more outside manufacturing help.

Dude – I ain’t getting a Dell.

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