Dell to buy $52 bln components from China

[OhioChick]

Source: Yahoo News

By Kirby Chien
2 hours, 52 minutes ago

BEIJING (Reuters) - Dell Inc (DELL.O) plans to buy $23 billion of components from China this year and $29 billion in 2009, helping it reduce costs while the company's main market, the United States, is facing recession.

The commoditization of computer hardware means competition is more a function of price and efficiency than quality and branding, making China a favorite place to source a broad range of goods, including electronic components.

"China is critical to Dell's global supply chain," founder and Chief Executive Michael Dell told reporters on Thursday.

"Dell will purchase $70 billion of computer-related supplies and equipment from China," he said, referring to total purchases over the 2007-2009 period.



Read more: http://news.yahoo.com/s/nm/20080320/bs_nm/china_dell_dc

[B3Nut]

1. It isn't just Dell...I don't think anybody builds mainboards here anymore.

We build custom systems using Intel motherboards, and nearly all of them come from China now. Even the high-end dual-Xeon server boards are made in China. Most boards used to be made in Taiwan...I think the Taiwanese boards were more robust, personally...

[4dsc]

2. Slave labor is much cheaper in China

This is a disgrace for sure.. No wonder I don't have a Dell computer..

[oviedodem]

3. The saddest part (coming from an IT person) is that the silicon

industry is next to nil in the US. We once used to dominate the production and it has evaporated all to the far east.

[Indenturedebtor]

5. But Globalization is good right?

I mean I always thought that Globalization made labor a global commodity which is good for labor right? Personally I think it's exciting to be part of a soulless global labor exchange in which the lowest bidder always wins. And in any case when our companies get fat by moving all of our jobs overseas they'll bring the money back here right? :sarcasm:

[autorank]

7. It's good for ithe plutocrats ...

... who accumulate wealth then rig the market by purchasing politicians at a cut rate price to endorse silly concepts like "globalization."

This is typical but not for long. At some point, either with a rejuvenated Obama who realizes the people are his only friends or an angry and large group of supporters when Obama gets screwed, there will be a great reckoning. The people of this country are not going it to 3rd world status quietly. We just have not had a shot at the traditional media. Pretty soon that won't matter.

But China has it's own problems. They're industrialization contributes to accelerating climate change
which poses a real threat to it's coastal cities (where else do they have cities?).

It's all turning into a self created "cluster ...." that feeds upon itself.

[fascisthunter]

18. Yes... Can't You Feel Your Boat Rising with all the Others

:sarcasm:

[brentspeak]

4. Hey, Dell -- I have no intention of buying any of your cheaply-made products

[OKthatsIT]

8. Couldn't we agree...Dell isn't an American Co. anymore?

They might have their headquarters here..but its just cosmetic?

[OhioChick]

9. We could add many companies to that list....

Micro$oft, Cisco, etc. etc. etc.

[JCMach1]

15. Let's point the finger at Apple too then... and HP, et al, ad infinitum...

[Tempest]

6. Dell products are going to be crap

Look what happened to the IBM Thinkpads after the division was sold to Levino.

Thinkpads used to be the best laptops on the market. Now they're just crap.

[Lance_Boyle]

11. Dell already uses mostly Chinese parts.

There won't be a decrease in quality, because they'll be using the same shit they've been using for the past decade - made in China.

[Tempest]

12. As we've seen with toys from China

Their quality control has taken a big hit in recent years.

Toys have been coming from China for many years, but it's only recently there have been problems with them.

The same with computer parts from China.

[TheLastMohican]

17. It's Lenovo

and what's wrong with those computers?
I have 2 Lenovo laptops and they are working just fine.
I must admit I have no Microcrap software installed and run only Linux applications.

[Lance_Boyle]

10. Pretty much everything inside a current or two-year-old Dell

is Chinese made. What is the news here?

[JCMach1]

16. try virtually everything in ANY laptop

:(

[merwin]

13. mmm... lead motherboard.

It's a new feature. When the motherboard goes out and starts smoking (which some do on occasion), you get poisoned! That's a feature, not a bug.

[krkaufman]

14. "competition is more a function of price and efficiency than quality and branding"

I'm not sure Dell stockholders will be happy to hear their CEO making such a statement, given what it means for public perception of Dell's branding and quality.

Personally, I'll think twice before giving Dell any more money.

[fascisthunter]

19. Don't Buy Dell.... Don't Support Slave Labor (nt)

[Wcross]

23. Don't buy Dell. Micheal Dell contributes to the G.O.P. & exploits labor. n/t

[customerserviceguy]

20. Duuude!

You're getting the shaft!

[itsrobert]

21. Dell's quality has been going down hill for a while now

The more cheap Chinese parts they put in, the more problems with their computers.

[Pavulon]

22. Designed in USA, Assembled in China...

on my macbook pro. Same as my communovo laptop. Only looks cooler, and runs fusion.