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Dell to sell factories

Computing giant Dell is considering selling off some of its factories as part of an overhaul expected to cut annual costs by $3 billion costs within three years.

The firm is apparently in discussions with a number of contract manufacturers interested in taking over the factories.

Dell’s in-house manufacturing model had previously been highly successful and has contributed to its strong position within the market, however improvements to rival supply chains, together with lower component costs has left the firm struggling to maintain its advantage.

Dell’s share has recently dropped after the company posted results for the last financial quarter that were lower than expected.

Link: FT

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