Linked by Thom Holwerda on Thu 12th Sep 2013 23:17 UTC
Hardware, Embedded Systems

Michael Dell has the won the battle for control of the computer company that he created, after shareholders backed his $24.8bn offer to take Dell private and revive the struggling business away from the incessant pressure of Wall Street.

The vote clears the way for the huge buyout, in which Dell is working with private equity partners Silver Lake after seeing off a challenge from activist investor Carl Icahn.

Must have been hard for him to see his baby slide into irrelevance. I hope for him he can turn things around, but I'm not sure if they'll be able to - they missed the boat, and it's probably in Fiji by now.

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RE[2]: Comment by MOS6510
by CapEnt on Fri 13th Sep 2013 12:40 UTC in reply to "RE: Comment by MOS6510"
CapEnt
Member since:
2005-12-18

Running your own manufacturing operations costs a lot. And if it is American territory, it costs even more. To make worse, if you can't keep your backlog filled with orders, running a manufacturing plant can send you to bankruptcy very fast due a simple feedback loop: factories generates expenses, accumulated expenses makes hard to lower product price, unable to lower the product price makes harder to get new customer to pay the expenses.

The whole point of outsourcing to companies like Foxconn and Asus is that they can keep huge manufacturing operations running at a optimal level all the time by relying on the orders of dozens of different "design and marketing companies".

Dell had no option at all other than outsource to remain competitive while keeping a large portfolio of products. Not even a industrial behemoth like Samsung can keep themselves competitive without some degree of outsourcing.

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