Dell (DELL)

Dell (DELL)

Postby millionairemind » Fri Sep 05, 2008 9:32 am

Dell launches low-cost ‘netbook’ laptop
By Kevin Allison in San Francisco

Published: September 5 2008 01:28 | Last updated: September 5 2008 01:28

Dell on Thursday became the latest company to enter the “netbook” market with the launch of a small, stripped-down laptop designed to appeal to customers looking for a low-cost, Internet-ready computer.

The world’s second-biggest personal computer maker said its new Inspiron Mini 9 was geared towards mobile consumers and first-time PC buyers looking for a highly portable machine capable of performing tasks like internet surfing, shopping, and online chat.

The launch comes a few months after Hewlett-Packard, Dell’s biggest rival, entered the market with its own mini-laptop. Asustek Computer, a Taiwanese PC maker, kicked off the market last year with its mini-laptop, the Eee PC.

The move towards smaller, stripped down laptops presents a conundrum for computer makers that have already been struggling with a shift in customer preferences towards lower-cost PCs.

“There has been a big race to the bottom with some of these vendors to see who can sell cheaper,” said Michael Gartenberg, vice president of mobile strategy at Jupiter Media, a market research group.

While the machines’ lower prices should make them appeal to a wider range of customers, their lower average selling prices can also hit margins, making them less profitable than other, higher-end product lines.

As usual, the challenge for PC makers will be to strike the right balance between features and price. Companies have offered small laptops for years but they have only recently reached the point where their price and features might make them competitive with more traditional machines.

Intel, the world’s biggest chipmaker, recently issued a bullish forecast for chips used in netbooks, citing strong demand. The company said it originally believed the low-cost laptops would sell only in emerging markets, had since discovered a strong market in the developed world for families looking for a second, third or fourth machine.

“The challenge of these devices is that they don’t become something that is neither a laptop replacement nor a cell phone,” said Mr Gartenberg. He suggested that the smaller machines could appeal to students, but that their usefulness for business users was likely to be limited.

“For business users, this is not going to be a primary device,” he said. “It could be a secondary computer, particularly for the road warriors.”

Dell said a Windows XP-based version of the Inspiron Mini 9 would be available immediately for $399. A non-Windows model, using an “intuitive Dell-developed custom interface” will sell for $349 when it becomes available in a few weeks.

Dell’s shares dipped 0.7 per cent on Thursday to $20.17. The shares are up 4.7 per cent this year.
Copyright The Financial Times Limited 2008
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Re: DELL

Postby millionairemind » Fri Sep 05, 2008 3:02 pm

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.

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.

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 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.
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Re: DELL

Postby winston » Tue Sep 09, 2008 4:57 pm

Not vested.

Dell Founder Buys $100 Million of Stock, SEC Filing Shows
By Phil Serafino

Sept. 9 (Bloomberg) -- Dell Inc. founder Michael Dell bought $100 million of shares last week, according to a filing yesterday with the Securities and Exchange Commission.

Dell, the chairman and chief executive officer of the Round Rock, Texas-based company, paid $20.42 a share for 3.5 million shares on Sept. 4, and $20.67 for 1.378 million on Sept. 5, the filing showed.
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Re: DELL (DELL)

Postby kennynah » Thu Jan 01, 2009 3:28 pm

Dell to organize globally around Major Segments; two executives to step down - update
12/31/2008 10:03 AM ET


(RTTNews) - Personal computer maker Dell Inc. (DELL: News ) Wednesday said that it will organize its businesses globally around three major customer segments, large enterprise, public sector, and small and medium businesses. The company also reshuffled its senior management team and announced the departure of Chief Marketing Officer Mark Jarvis and Mike Cannon, president, Global Operations. Earlier today, the Wall Street Journal reported that Dell was preparing for a management shake-up.

Dell said it has begun the process of organizing people, functions and practices into the new global business units. The company's consumer business, led by Ron Garriques, is already organized globally. The company also plans to align its external and internal financial reporting with the new structure during the first half of fiscal 2010, which begins in February.

According to the company, the four groups best capitalize on its competitive advantages, while strengthening execution and synergies. Each group will possess greater global accountability and responsibility for responding to customer needs, the company noted.

"In the past two years we have significantly improved our competitiveness, reengineered our supply chain, broadened our product portfolio and introduced Dell to more people in more places than ever before. We have laid the foundation for the transition from a global business that's run regionally to businesses that are really globally organized," said Michael Dell, Chairman and Chief Executive Officer of the company.
"Customer requirements are increasingly being defined by how they use technology rather than where they use it. That's why we won't let ourselves be limited by geographic boundaries in solving their needs."

The Large Enterprise segment will be led by Steve Schuckenbrock, currently president, Global Services, and chief information officer. Paul Bell, currently president, Dell Americas will lead the Public segment. The company also named Steve Felice, based in Singapore, currently president, Dell Asia-Pacific and Japan, as the head of the Small and Medium Business.

Further, Dell said that Mike Cannon, president, Global Operations, will retire from the company, effective January 31. Jeff Clarke will succeed Cannon, who will serve as a consultant to Dell. In addition to responsibilities as head of Dell's Business Client Product Group, will Clarke become vice chairman, Global Operations.

Additionally, the company's Chief Marketing Officer Mark Jarvis will leave this fiscal quarter and provide ongoing counsel to Dell through the consulting business that brought him to the company. Erin Nelson, former vice president of marketing, Dell Europe, Middle East and Africa, will succeed Jarvis.
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Re: DELL (DELL)

Postby iam802 » Sat Jan 31, 2009 7:07 pm

Rumours.


Dell plots smartphone foray, eyes Apple: report

http://www.reuters.com/article/ousivMol ... BU20090130
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Re: DELL (DELL)

Postby iam802 » Thu Jul 16, 2009 12:50 pm

Taiwan 'orders' Dell to honor $15 monitor mishap (updated)


http://www.engadget.com/2009/07/01/taiw ... or-mishap/


It's not exactly all that uncommon for Dell to misprice an item on its website and, if you're lucky, it might even honor it. But it looks like the stakes have just been raised considerably in Taiwan, where the company recently listed a 19-inch monitor for NT$500 (or about $15US) and promptly received more than 26,000 orders for close to 140,000 of the monitors. Now, ordinarily, Dell would simply send out a polite email explaining their mistake and call it a day, but Taiwanese regulators have now stepped in and ordered suggested that Dell honors the misprice after receiving a couple of hundred complaints. For its part, Dell simply says that it plans to "compensate the buyers for the mistake," although it's not clear if that means it'll actually be sending out the monitors -- which, incidentally, would add up to more than $20 million at their full list price.

Update: Engadget Chinese tells us that the Taiwanese government has suggested to Dell that it compensates consumers fairly and will assist in legal action against Dell if they don't. Also, the $15 price applies only to the first monitor purchased with discounts applied to subsequent units for those who made multiple-monitor purchases.

Update 2: Dell has agreed to issue a NT$1000 (about $30) coupon for every monitor purchased including those made through multiple purchase orders. That sound more than reasonable to us.
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Re: DELL (DELL)

Postby blid2def » Thu Jul 16, 2009 1:02 pm

iam802 wrote:Rumours.

Dell plots smartphone foray, eyes Apple: report

http://www.reuters.com/article/ousivMol ... BU20090130


To Dell:

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Re: DELL (DELL)

Postby kennynah » Thu Jul 16, 2009 1:18 pm

liao lah.... if tonight market tanks.... everyone will blame u for this

"peng joon" picture.... :shock:


becos it is as good as posting this picture... :mrgreen: :mrgreen:

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Last edited by kennynah on Thu Jul 16, 2009 1:23 pm, edited 1 time in total.
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Re: DELL (DELL)

Postby iam802 » Mon Sep 21, 2009 10:49 pm

Dell buys Perot Systems in $3.9 billion deal

http://money.cnn.com/2009/09/21/technol ... 2009092109

--
Guess Dell needs a service unit as well.

Just thinking what so special about Perot?

Are they just playing catch up with HP (and the EDS deal)?
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Re: DELL (DELL)

Postby millionairemind » Fri Nov 20, 2009 12:58 pm

Nov 20, 2009
Dell profits plunge 54%

SAN FRANCISCO - DELL Inc's quarterly profit plunged 54 per cent on lower-than-expected sales as it lost market share to competitors engaged in a budding price war in the PC market.

Shares of Dell, the No. 3 maker of personal computers, tumbled 6 per cent following the results, which also show a decline in gross margin that disturbed Wall Street analysts.

The weak performance reflected the growing divide between Dell and its larger rival Hewlett-Packard Co, which had posted higher-than-expected preliminary earnings.

Despite the report, Dell executives spoke optimistically about demand trends and expectations for a wave of new spending next year as companies update aging equipment.

PC sales had weakened ahead of the Oct 22 launch of Microsoft Corp's Windows 7 operating system, before surging afterward, said Chief Financial Officer Brian Gladden, adding that the backlog at the Oct 30 close of the quarter was larger than normal.

Dell reported a net profit of US$337 million (S$468 million), or 17 cents a share, for its fiscal third quarter, down from US$727 million, or 37 cents a share, in the year-ago period. Revenue fell 15 per cent to US$12.9 billion, missing the average analyst estimate of US$13.2 billion. -- THOMSON REUTERS
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