Dell and HP to cut notebook R&D?

Posted on Monday, Sep 29 2008 @ 00:20 CEST by Thomas De Maesschalck
Taiwanese sources claim both Dell and HP will cut notebook R&D for 2009 because of the global economic slowdown:
Notebook R&D personnel working at Dell and HP are assigned mainly to test the performance and reliability of new parts and components. This work overlaps that performed by R&D staff at ODM makers and so is an area vendors can afford to cut back on without impacting new product development, the sources noted.

The cuts in R&D expenditure would allow Dell and HP to reduce operating costs while boosting earnings, the sources added.

With the planned cuts, Dell and HP will no longer overwhelmingly control the procurement of parts and components needed for the production of their notebooks and instead will delegate purchasing power to ODM makers, allowing the contract makers to purchase needed parts from the suppliers they chose.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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