Dell deliberately sold flawed PCs: Lawsuit docs reveals

Dell deliberately sold flawed PCs: Lawsuit docs reveals

By SiliconIndia   |    8 Comments
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Dell deliberately sold flawed PCs: Lawsuit docs reveals
Bangalore: The documents from a lawsuit filed three years ago against Dell have confirmed that the company was aware of and continued to sell flawed PCs. About 12 million OptiPlex desktops between 2003 and 2005 shipped with mainboards capacitors that, according to e-mail messages, Dell employees knew would fail within three years. Staff were told to avoid acknowledging the mainboards were bad and downplayed breakdowns, even when batches of 1,000 or more PCs failed at the same time.

Dell eventually admitted to the issue and in 2005 set aside $300 million to mend and replace computers, although it tried to downplay the effects by saying the capacitors didn't cause data loss or pose a safety risk. Many affected companies did, however, complain that they lost millions of dollars of business as they were suddenly forced to repair or replace systems all at once.

The problem wasn't unique to Dell and did affect system builders such as Apple and HP. Producers of stand-alone mainboards like ASUS and MSI were also affected. Most of these, however, were more active in addressing complaints and either fixed systems more proactively or started extended repair programs sooner.

Dell's supply chain has also been blamed for some of the faults. Its system, which is still in practice today, relies on a just-in-time assembly process that lets it get cheaper parts as they become available. While leaner and more profitable, it exacerbated the problem by leaving Dell with no easy solution to getting alternative mainboards where other companies could swap them out sooner.

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Reader's comments(8)
1: I was one who always praised DELL product and used them thouroughly in past 10 years. During the time, DELL's customer support and quality of services have been detoriated drastically which is certainly wasting their own efforts to manufacture quality products.
Posted by:Uttam Kr Meena - 05 Jul, 2010
2: DELL played cheap tricks... it looked after its instantaneous business but not for the long term. I happen to be its victim. I was sold a laptop that has no bluetooth device which i came to know when i had to forcebly replace my bad monitor for one of its technicians.. what a shame on u.. i pity u man for playing such cheap games with customers
Posted by:J Reddy - 29 Jun, 2010
3: Dell is well known reputed brand and it is not easy to swap them out. Companies like dell deal with huge customer base and no one is perfect mistakes keeps happening but “ There is always scope of improvement ” and no one can deny it. They are customer oriented company. Customers around the world appreciate dell’s product and believe me they are happy. I myself have spoken to many of them they feel honored by using dell’s product.
Posted by:anita - 29 Jun, 2010
Anita sorry to say this but just type Dell customer care and will see thousands of blogs filled with their complains..... I had seen people happly using Dell but not seen the one who praised Dell's customer support.
vikas Replied to: anita - 30 Jun, 2010
Vikas I agreed with you but you see as 5 finger of our hands are not the same in the same manner it is not easy to keep everyone happy. People are raising their voice because they have lost their money if company like dell is giving you faulty product it is also giving you an option to get it replaced with in 30days I am sure that is more than sufficient time to analyze the product. If customer is not able find any fault with in 30days then still warranty option is there. If customer complains genuine it is always considered by the company. People have invested money and they might have to face little bit of trouble that why they are raising their voice just because they have lost money there are raising their voice where were all these people when Bhopal gas tragedy took place and CEO of that company still enjoying his life an people out there are still waiting for the judgment. Just because company has done small mistake and also is willing to rectify it. It doesn’t means that they are culprit. If you really wanna raise you voice raise it for right cause not individual benefit.
anita Replied to: vikas - 30 Jun, 2010
vikas you are correct, even my personal experience is very bad for del's customer service and this wii definitely loose their credential as MNC
kreesh Replied to: vikas - 30 Jun, 2010
7: this news can harm dell's market image.
Posted by:vega - 29 Jun, 2010
Guys , For an MNC like dell rather than playing cheap gimmicks on its customers more important is customer satisfaction and good will . Dells customer care is one the best and if you had any concerns with dells product you are always free to raise it and get that rectified... Then why this ruckus ... Dell Rocks.
Vishal Replied to: vega - 05 Jul, 2010