Dell, HP look to slash R&D costs for 2009
updated 12:40 pm EDT, Thu September 25, 2008
Dell, HP to cut R&D costs?
Worldwide economic crises are beginning to have serious impact within PC builders Dell and HP, claims DigiTimes. The publication cites sources inside Taiwanese channel distributors, who say that both companies are looking to cut back on research and development for notebooks, which usually entails testing the performance and endurance of new parts. Because this is also done by the actual manufacturers (ODMs), sources say, Dell and HP believe they can scale back without hurting future products.
Details such as any possible job losses are unclear, but it is thought that ODMs will begin buying many of the parts needed on their own, choosing which suppliers to use. The number of ODM purchases could jump from 10 percent now to 20 percent in 2009, the sources suggest.
The situation contrasts starkly with Apple, whose Mac sales have been brisk, pointing to continually expanding profits. Apple is also known to pick virtually every component in a computer itself, down to processors and optical drives.
Fresh-Faced Recruit
Joined: Sep 2001
in other words
Dell and HP products are going to get even crappier.