Found this on a Dell employee blog:
So that folks is why the quality can vary between models at Dell.Dell buys its computers from ODM's (Original Design Manufacturers). Dell goes to companies like Compal, Wistron, FoxConn, Lucky Gold Strike, etc. and says I want a really cheap PC that's sort of like a ThinkPad, NC6125 etc. The ODM then designs something and says it will cost X. Note: almost all of the ODM's are in China, Taiwan or around there somewhere. Anyway, almost 100% of Dell's R+D budget is allocated to taking the parts from the ODM's and figuring out the best way to get the ODM parts and parts they source directly (processors, hard drives, memory) put together in TX. That said, Dell is the best in the industry at Assembling (note: assembly is different than manufacturing). Dell manufactures nothing. Repeat, Dell makes nothing!!!! For some examples, look at the X300. Gateway has the exact same model as they source from the same ODM. Other companies like Gateway use ODM's as well, but in many cases, as with HP, they actually design the systems themselves, then give the designs to the ODMs and say, "here's what we want, please make this". One of the reasons there are so many different customer support locations for Dell is that there are so many different companies making the hardware that no one helpdesk could really support all the different makes and models.
