Dell getting out of LCD market

[Todd33]

Is this news? I just talked to a Dell engineering rep and he said they are getting out of the LCD, TV, mp3, etc. market due to low margin. Get those Dell 24" and 30" while you can I guess.

 

[Schadenfroh]

They never actually built any of that stuff in the first place.

 

[OneOfTheseDays]

that's surprising, I always thought Dell raked in the $$$ from their LCD sales.

 

[zephyrprime]

I can't believe it. Them getting out of the tv business is no surprise but I'd be very surprised if they got out of the monitor business.

 

[1N0V471V]

Why would Dell ever get out of the PC LCD market? What would they bundle with their computers, CRTs?

 

[cockeyed]

Originally posted by: Schadenfroh
They never actually built any of that stuff in the first place.

This ARTICLE shows who manufacturers Dell, Acer, Viewsonic LCDs. TPV Technology also makes the AOC/Envision brand.

 

[Lord Evermore]

Originally posted by: 1N0V471V
Why would Dell ever get out of the PC LCD market? What would they bundle with their computers, CRTs?

Presumably some of the other brands that they already sell. But that would certainly cut into their margins more than just having them built as Dell branded so I kind of doubt they'd leave the market.

Todd33: Go back and have this "engineering rep" explain himself.

 

[jiffylube1024]

Guess all those 'sales' Dell had to spark up interest were big losers. Or the info is bogus.

 

[ElFenix]

Originally posted by: 1N0V471V
Why would Dell ever get out of the PC LCD market? What would they bundle with their computers, CRTs?

that is odd. i could see if they were to stop selling the LCDs as aftermarket, but selling branded monitors has been a staple of big OEMs for ages. i guess if they can get similar margins by selling a select few other-branded monitors then there is no reason to go to the expense of selling their own brand.

 

[JackBurton]

I find it HIGHLY unlikely that they would abandon their LCD monitors. That just doesn't make sense.

 

[ElFenix]

Originally posted by: JackBurton
I find it HIGHLY unlikely that they would abandon their LCD monitors. That just doesn't make sense.

if they're not meeting their cost of capital it makes a lot of sense, actually.

 

[postmortemIA]

article[/b]
US-based Dell was the top LCD monitor vendor in 2005, shipping 20.0 million units, according to DisplayBank

 

[Todd33]

I also asked why considering the popularity. He said that the Dell's model (promise of huge volume to lower OEM cost) does not work due to the limited number of suppliers. They kind of use the Wal-mart method of getting low cost and it's not working in these markets. He's not a sales rep, he's a semi-high level engineering rep. He knows his stuff, so unless he is only talking internal rumors I don't see why he would be wrong.

We discussed it for like 20 minutes during lunch, so it wasn't an off-the-cuff remark.

 

[mshan]

Did you specifically ask him whether he was referring to LCD and Plasma TVs, vs LCD monitors to go with their computers?

 

[Lord Evermore]

Why would a high level engineering rep necessarily know any better about whether Dell is able to get large margins or low costs from the manufacturers? I think maybe he heard something that somebody else heard from somebody else who heard it from somebody who was just trying to sound smart.

 

[xtknight]

Well, you were right about the MP3 one. I really hope they don't exit the LCD market. Sony exited out of the US/Japan LCD market today. And also today Taiwan is exiting the PDP market. WTF is going on?

 

[Josh7289]

They better not leave the LCD market; that would suck. What they should do is get out of the CRT market!

Originally posted by: xtknight
Well, you were right about the MP3 one. I really hope they don't exit the LCD market. Sony exited out of the US/Japan LCD market today. And also today Taiwan is exiting the PDP market. WTF is going on?

Taiwan? Please explain. ^^

 

[xtknight]

Originally posted by: Josh7289
Taiwan? Please explain. ^^

Taiwan (main manufacturer CPT) to exit PDP market

Just seems like a lot going on today.

 

[jiffylube1024]

Originally posted by: xtknight
Well, you were right about the MP3 one. I really hope they don't exit the LCD market. Sony exited out of the US/Japan LCD market today. And also today Taiwan is exiting the PDP market. WTF is going on?

Could mean that China (plus Korea, etc.) is waking up sooner than anticipated and are upping the cost of LCD panels since they can just make finished products themselves and sell them for more money.

 

[Todd33]

Originally posted by: mshan
Did you specifically ask him whether he was referring to LCD and Plasma TVs, vs LCD monitors to go with their computers?

Yes, he claimed all TVs and LCDs, we even talked about the 30" LCD. We'll see if he is misled, I justed wanted to give you all a heads up.

 

[ElFenix]

Originally posted by: Lord Evermore
Why would a high level engineering rep necessarily know any better about whether Dell is able to get large margins or low costs from the manufacturers? I think maybe he heard something that somebody else heard from somebody else who heard it from somebody who was just trying to sound smart.

he might know that his job is getting axed

 

[1N0V471V]

True, and it would seem that he would be under a NDA by Dell... so this "leaked" information might be illegal

 

[josh6079]

If he's going to be losing his job he might not care about an NDA.

If it's true, that sucks. They've always made some decent LCD's for the money.

 

[PianoMan]

*Looks at his relatively new LCD and wonders if there's now going to be "fire sale" prices.* :frown:

 

[n7]

I can see this being true.

I have a strong dislike for Dell, but i was looking forward to being able to afford one of their 24"+ LCDs someday.