John Paczkowski

Recent Posts by John Paczkowski

Course, You Could Just Shut the Company Down and Give the Money Back to the Shareholders


What would I do? I’d shut it down and give the money back to the shareholders.”

Michael Dell on what he would do if he were CEO of Apple (AAPL), circa 1997

When Dell (DELL) missed Wall Street’s profit expectations last week, the company’s leadership spoke little about its plans to improve profitability, saying only that there is “much more work to do.” Well, turns out that “much more work to do” is actually a euphemism for “we still have to sell off our factories to contract manufacturers.” Faced with falling margins, Dell is hoping to cut costs by selling sell most–if not all–of its plants within the next 18 months. Why? From The Wall Street Journal:

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–H-P builds less than half of its PCs in facilities it owns.”

Interesting. So Dell’s factories, while “efficient,” are expensive. Or rather, they’re more expensive to run than those run by foreign contract manufacturers whose operations are laser-focused on finding “efficiencies in manufacturing,” i.e., employee wages.

I guess if you’ve already outsourced your tech support to India, you might as well outsource your manufacturing to China, right?

Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

Latest Video

View all videos »

Search »

I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik