14 DAY TRIAL // Dell seems to be in a lot more trouble than previously thought. Thus, after announcing that it will have to cut an important number of jobs due to financial problems and becoming the subject of an official inquiry regarding its dubious accounting practices, it looks like Michael Dell's company will also have to pull back from the HDTV LCD market, as it proved to be quite unprofitable for a company that's now having problems even in its core field, desktop PCs.
Thus, according to an article published by Chinmei Sung for Bloomberg, it would seem that a number of company officials who wished to remain anonymous stated that Dell will shut down its LCD TV range sometime later this month, in order to bring things back to basic and re-focus on its core-business, that of manufacturing desktop and portable computing systems. The reason for this movement? As always, money.
As numerous sources confirm, the company's line of branded LCDs, started back in November 2003, was far less successful that previously expected. As the Austin, Texas-based research firm DisplaySearch reports, Dell is not even in the top 30 manufacturers and/or retailers of high definition TV sets, and has had quite a lot of problems with the devices themselves. So, why invest money in a deal that's not bringing back the desired revenue?
According to the insiders cited by the Bloomberg article, since it doesn't have its own manufacturing lines, the company contracted several less-known manufacturers, as for example Compal Electronics Inc., Lite-On Technology Corp. and TPV Technology Ltd., in order to manufacture its branded products. This led to numerous technical problems and the company got slapped with a class-action lawsuit back in February, as some of their HDTV sets displayed some very serious technical problems.
The company's representatives refrained from making any comments on the subject, but it seems that Dell will continue to sell HDTV sets manufactured by some of its former rivals. It seems thus that since Michael Dell stepped-up again as CEO, things at Dell have begun to change for the better and the company will probably manage, at some point, to get out of the world of trouble it's in right now.
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