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Electronics Production | September 11, 2008

EMS-providers do not comment on Dell proposal

As reported earlier, computer maker Dell is said to sell its manufacturing plants worldwide and to outsource production to EMS-providers.
Founder Michael Dell wants to save around $3 billion in annual expenses over the next three years to increase profits: Dell has had problems catching up with its rival HP. Moreover, these savings are to be reached by cutting jobs and outsourcing the production.

"Dell had been behind the curve in outsourcing to those companies because it falsely believed it was more efficient,'' Brian Alexander, an analyst at Raymond James & Associates is cited in app.com

Now rumours have it, that the company is talking to EMS-providers to sell its production plans to. (evertiq reported) Foxconn, Compal Electronics, Quanta Computer, Jabil, Celestica are said to be among the contacted manufacturers. All of them already manufacture parts or notebook computers for Dell. However, all EMS-provider – as well as Dell – decline to comment on these persistent rumours, the report goes on.

Dell owns manufacturing and distribution facilities in the USA, Ireland, India, China, Brazil, Malaysia and Poland.

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