Huge Pedia

In an article published on Monday, June 28 , 2010 , the New York Times reveals that Dell has sold between 2003 and 2005, nearly 12 million defective machines.

The deficient  computers are the professionals OptiPlex, Dell‘s flagship products, both were sold to small and medium companies  to large retailers like Wal Mart, or even government authorities, the newspaper said.

The manufacturing defect is bound to capacitors integrated into the motherboard of the computers. “A survey by Dell found that these capacitors were likely to cause problems in 97% of cases over a period of three years,” said the New York Times, quoting from the documents. The crux of the matter is not the default, but the fact that Dell knew that these capacitors, provided by the Japanese company Nichicon, were defective. The Texan manufacturer did not focus on the quality control, but has preferred to treat the problem downstream, through its customer service. Consequence: if Dell has replaced the motherboards of the defective computers , the replacement cards themselves were defective! In part because Dell has squandered, 97% of the production Nichicon, over a period of nearly three years, were flawed. Quality problems were thus ten times worse than what Dell had planned.

So Dell will certainly have to pay a heavy fine, and a hefty bill in compensation to its customers. This example is instructive, because it affects a large number of machines: it is very nearly the equivalent of the annual production of computers from Apple. But Dell is not an isolated case , Apple itself had problems with capacitors at its iMac G5 . In 2007, Advanced Internet Technologies has filed a complaint against Dell after purchasing a fleet of 2,000 of these computers which a significant number of them quickly broke down.

The investigation  conducted in this case focused on whether Dell was, yes or no aware of these risks and problems related to components used in assembling its machines. According to the New York Times who obtained certain documents from the investigation, there is no doubt that Dell has knowingly sold defective computers that they knew about .

Indeed, we learn that Dell had even commissioned a study of these machines that revealed that these computers were 97% likely to fail within three years after their first power. But Dell had continued to sell them. An issue with these revelations, should take on new dimensions. Indeed, many professional  customers  will discover the existence of the complaint and support it. There is already talk of many class-actions and millions of dollars in compensation to be paid by Dell.

Regarding the consequences of such a scandal in terms of image, it could be disastrous for the Texan company!

Attorney General of New York filed a lawsuit against several manufacturers of LCD accused of colluding on prices. LG, Samsung, Sharp and Toshiba are involved.

Already covered in recent years by several investigations and convicted, the leading manufacturer of LCD screens are again the subject of a complaint for unlawful agreement.

The problem is huge, since both companies have sold their machines to public services such as the federal government, counties, municipalities, schools, hospitals or barracks. He has claimed damages for consequential compensation for the “hundreds of millions of dollars” for those municipalities, schools and cities of the State of New York that would have spent on overpaying LCDs.

In the U.S, Dell recovery a matter of cartel around the LCD and wants to dismantle a cartel of manufacturers for questionable business practices … First end 2008 and end 2009 under the leadership of Nokia’s business unlawful agreement on the price of LCD screens have exploded into the open. The U.S. manufacturer Dell was filling earlier this year  a new complaint against HannStar, Hitachi, Seiko Epson, Sharp and Toshiba to the court in San Francisco. For the moment, none of the defendants were willing to answer these charges.

Recall that in 2009, the U.S. court had already sentenced Hitachi, Sharp, LG and Chunghwa Picture Tubes for price fixing, condemning them to pay some $ 585 million in damages, including $ 400 million just for LG.  Nokia and Dell have each filed complaints against most of the brands mentioned. Why a new procedure. Because the trial covered only the period from 2001 to 2006, and since, things have clearly not arranged on the market of the screen.

Moreover, the problem is obviously not only in the United States, and at the same time, the European Commission publishes a list of accusations against certain manufacturers of screens that would violate European law. If we do not know the names of all businesses worried, however we know that LG and Philips are part confirmed they have received threats from the Commission.

And that’s not all, Japan also competition authorities began to search for manufacturers of LCD panels, hoping to stop suspected illegal business practices. If all these procedures reach the same conclusions at the same time, manufacturers could have complained to regularize their situation in each continent and pay heavy damages and fines …