Company denies rumors of HDTV LCD line shut down

Jun 8, 2007 09:46 GMT  ·  By

Looks like Dell has changed its mind regarding the HDTV market. As we informed you yesterday, there were quite a lot of rumors going around the Internet regarding Dell's possible withdrawal from the market of branded LCD TVs, a move caused by the company's financial problems, as well as by the fact that this segment of Michael Dell's company is not exactly profitable.

All the rumors were based on an article written by Chinmei Sung (which we've quoted yesterday) for the Taiwanese newspaper Economic Daily and picked up by several important websites, including the business-oriented Bloomberg. The reporter allegedly contacted several insiders from Dell, who spilled the beans on the company's future plans for this business.

However, it seems that either said sources weren't that reliable, or the company has changed its mind over night. Thus, according to an article by Ben Ames for IDG News Service, the company's representatives strongly denied any intention of pulling out of the HDTV market. "We will soon offer a wider assortment of televisions from leading manufacturers that feature the latest technology and meet Dell's high standards for performance," said Dell spokeswoman Rachel Lyon.

However, Dell's representatives acknowledged the fact that some changes in Dell's LCD TV department were imminent. Thus, it seems that the company will only sell Dell-branded televisions with screens of 37 inches and smaller, although it will continue retailing 40-inch and 46-inch TVs from Sony, Matsushita Electric (Panasonic), Pioneer, Samsung and ViewSonic.

As you might know, all of these changes come amid a large-scale overhauling of Dell, which resulted in the sacking of 10 percent of its 88,100 workers, as well as a complete reorganization of the core business. Looks like Michael Dell has kept himself quite busy since his return at the helm of the company he founded, but he'll have to do a lot better in order to bring back Dell to the leading position it occupied on the market only a few years back.

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