Suit Over Faulty Computers Highlights Dell's Decline

Wednesday Jun 30th 2010 by Staff

Internal documents suggest the company may have shipped 11.8 million PCs that it knew were likely to fail.

NY Times: Recently disclosed internal documents used as evidence in a lawsuit against Dell show the company may have knowingly shipped 11.8 million faulty computers between 2003 and 2005. Despite the fact that they knew the PCs were likely to break, employees were less than helpful to affected customers. In one case, employees told the math department of the University of Texas that their computers failed because the difficult math problems they were working on had overtaxed their systems. In another instance, Dell refused to fix 1,000 of the error-prone machines.

For the past seven years, Dell has been declining, in part because of problems like those highlighted by the lawsuit. “They were fixing bad computers with bad computers and were misleading customers at the same time,” explains consultant Ira Winkler. “They knew millions of computers would be out there causing inevitable damage and were not giving people an opportunity to fix that damage.”

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