Saturday, July 24, 2010

"So Much For The Dell Model."

I recall the hype about "the Dell process" or "the Dell way" or whatever it was (model, their manufacturing process), and the jealousy Michael Dell had over Apple's success. We Apple fans (and maybe some others) liked to refer to Dell as "Dull" since they made dull beige boxes.

Turns out their great production process wasn't. It was all accounting tricks. Reminds me of Enron, really. You would think people would wise up, although I guess the people who are dumb enough to think they are smart enough to break the rules are also the ones who aren't smart enough to make it work or get away with it. You could blame some of the losses on the economy, but Apple is doing fine.

So, the SEC has released some internal Dell emails where the Dell people discuss how they are only making their quarterly targets with a little side money from Intel. Or, a lot. Dell's quarterly target should have been "make great computers."

My headline is from the writeup by Ashlee Vance.