Dell Inc founder Michael Dell, whose direct-to-consumer sales strategy created one of the world's top PC makers, said new thinking is required as his company struggles to spark growth.
"The direct model has been a revolution, but is not a religion," Dell wrote in an e-mail to employees on Thursday. "We will simplify our business model and go beyond it to give our customers what they need."
The message signals Dell may be reconsidering its strategy after Hewlett-Packard Co, which sells PCs through retailers, trounced Dell in the market for a third straight quarter. The e-mail was at least Dell's second to employees since he reclaimed the chief executive officer title in January after ousting protege Kevin Rollins.
While he tweaks the business model, Dell, 42, is also handling a government probe into the company's accounting. Round Rock, Texas-based Dell said last month it found evidence of misconduct and errors as part of a US Securities and Exchange Commission review that escalated into a formal investigation in November.
Shares of Dell rose US$0.32 to close on Friday at US$25.23 in NASDAQ Stock Market trading. The stock has fallen 2.7 percent in the past 12 months, compared with a 27 percent gain at Palo Alto, California-based Hewlett-Packard.
"This is one of the most exciting periods in our history, but it requires all of us to stand together as one Dell to make profound changes and take well thought-out risks," said Dell in the e-mail. "We will simplify our organization to make it easier to hear customers."
Dell's sales of PCs, which account for most of its revenue, declined after US consumers complained of poor customer service and spurned its notebook designs.
Dell lost the PC market lead last year after capturing the top spot in 2003. Its first quarter US shipments fell 14.4 percent, according to research firm IDC.
In the past three months, Michael Dell has expanded his team of top managers, tapping Motorola Inc's Ron Garriques to lead a new consumer unit and Mark Jarvis, formerly of Oracle Corp, to serve as the company's first-ever chief marketing officer.
At least five longtime executives have left since December, including Rollins and former chief financial officer James Schneider.
Dell's plans to revive the business include devising new approaches to manufacturing and distribution. That may help the company regain the price advantage it once held over rivals such as Hewlett-Packard, which copied Dell's earlier innovations to offer lower-priced systems.
"These won't merely be exercises in cost cutting," Dell said in the memo.
"We plan to eliminate overlaps in organization and activities," he said.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
Standard Chartered Taiwan on March 26 announced that it has partnered with international fintech firm FinIQ to build an “Automated Structured Products Pricing Platform.” The bank is also introducing products from global issuers including Goldman Sachs Group Inc, Barclays PLC and BNP Paribas SA. The new platform enables an end-to-end process whereby it finds the most competitive pricing across multiple issuers in a matter of minutes, followed by automated documentation and transaction execution, which significantly shortens time-to-market and delivers a superior wealth management experience. Standard Chartered Bank Taiwan CEO Anthony Yu (游天立) said: “Standard Chartered is increasingly leveraging its wealth management
RSS