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April 13, 2007

Dell China - Questionable Sales Practices Abound

posted by MR WAVETHEORY at 4/13/2007 10:14:00 AM
Dell China (Nasdaq DELL) is apparently rationalizing some of their cost structure in China while everyone else is ramping up their China strategy. Layoffs of 10% are being planned by end of April. Apparently, the problem has to do with the questionable sales practices of the sales force. Insiders claim that more than half of the sales staff at Dell are engaging in questionable sales practices. They would have relatives place orders, deposit the cash for the order, and then cancel the order - and withdraw their deposit. Of course, when this is perfectly timed, the salesmen and women have taken their bonuses and their money! Sounds like '99!

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