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October 19, 2004 5:32 PM PDT

Dell to open new PC plant in United States

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ROUND ROCK, Texas--Dell will announce within weeks a plan to build a new manufacturing plant in the United States, as other PC makers continue to send such work overseas, CEO Kevin Rollins said Tuesday in a wide-ranging interview with CNET News.com.

"We'll announce in the next month or two new capacity here in the U.S., and in the next few years, we're going to need new manufacturing capacity in Europe and Asia, too," Rollins said. Asked about reports that the plant could be located in North Carolina, Rollins said rumors about the expansion were, in general, "more accurate than not."

Dell, based here, shipped the most computers in the world during the third quarter and will need to expand its manufacturing capacity in order to keep up with its market share and revenue goals.

Dell CEO Kevin Rollins - Click to view larger image

Dell CEO Kevin Rollins (click to enlarge)

The company has a stated goal of reaching $60 billion or more in annual revenue over time. To hit that mark, the company will have to increase its share of the PC market to nearly 30 percent from approximately 18 percent, the company has said, thus requiring it to ramp up output.

In the interview, Rollins also touched on a number of topics, including the following:

• Consumer electronics will be an important, but not huge, part of Dell's business in the future. The sector currently accounts for only about 15 percent of Dell's revenue. Although the company has begun to sell more electronics products, prices and profits will remain low. Apple Computer's iPod, Rollins said, has been one of the notable exceptions to the grinding pressure of consumer electronics.

"If you look at the largest CE manufacturers, they are all doing terrible," Rollins said. "They are all selling a lot of doodads, but they aren't doing that well...The industry is fundamentally challenged."

Nonetheless, Dell will continue to come out with new TVs and to drive prices lower. "I'd like to see a plasma TV below $1,000," Rollins said. Dell's current 42-inch plasma TV sells for $3,400.

View reply
Is he on CRACK? - Of course I want AMD !!
by October 20, 2004 1:14 PM PDT
This Dell rep is clearly not listening to his future customers. In the book "The Innovator's Dilemma" many companies fall into the trap of listening only to their existing customer base. This allows competitors to innovate with lower-priced products, which innevitably move upmarket. AMD is a classic case from almost right from the pages of Clayton M. Christensen's book.

I'be been building my own AMD-based systems since they were 386 clones. Now, my latest system is the upmarket Athlon 64 3500+. Dell does not have my business because they do not carry AMD. Additionally, when I buy on Government contracts, I purchase HP servers -- not Dell -- Dell does not carry AMD.

I would love it if Dell offered AMD systems, but if they are captive to their existing customer base and are willfuly turning a blind eye to the wants and needs of their their future customers, they will limit their own growth opportunities.
Reply to this comment
Dell=Ditto
by October 20, 2004 2:44 PM PDT
GEE THANKS all mighty Dell!
Throwing the USA a bone by building PC by Americans for a
change. Too little, too late dude.
Large quantity with total lack of quality is Dull's vision.

What the H**L has Dell Invented?
OS = NO
Processor Chip = NO
Industry leading software = NO
hardware / hardrives / CD-DVD Drives = NO
Monitors = NO
Wireless technology = NO
Cheap & clunky imitations, poorly manufactured in third world
countries by outsourced foreign workers = YES
Technical Support by outsourced employess in New
Dell-hi India = YES
Michael Dull, shut up, sit down, get out of the way.
Dull = Yesterday's news faking its' way to sell cheap crates &
TVs to the masses that have been hypnotized by his propaganda
& WallMart prices.
Dude, you're getting a Dud.
- Eyes wide open in Seattle -
Reply to this comment
in need of therapy?
by October 22, 2004 6:44 PM PDT
yes, we all can read you are in need of some therapy. It's good to get all that out. Its a start. Now go get some help with that!
View reply
WinTelDell Monopoly
by October 20, 2004 3:00 PM PDT
Of course Micro$oft & Intel are paying for marketing &
commercials for Dull. Every Dull commercial ALWAYS states that
Dull's comes with MS XP Server / MS XP Pro / Intel Inside chime
pops up to REMIND the Dull-minded Citizens that the WinTelDell
Cartel is the ONLY CHOICE to make for your PC needs.

Over course 64 bit AMD & IBM G5 processors are better than
Intel's chips, but until ShortHorn vaporware MS OS comes out in
2006, there's no 64 OS available (EXCEPT for Mac OSX, Sun
Solaris, Linux, SGI )
Gee... you think the monopolist are dragging their feet to
promote 64 bit computing options until Shorthorn finally
delivers on all of its "cure-all-wiz-bang" promises from Citizen
Gates...? maybe? That's why AND64's are kept in the shadows
since AMD is not a "player" in the illegal monopoly of the
WintelDell Cartel.
Follow the money & look at the man behind the curtain my
friends...
-eyes wide open in Seattle-
Reply to this comment
wow
by October 22, 2004 6:42 PM PDT
WOW! Someone has a few major issues to deal with.
View all 2 replies
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