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Dell, Inc. (NASDAQ: DELL (http://quotes.nasdaq.com/asp/SummaryQuote.asp?symbol=DELL&selected=DELL)) is a computer-hardware manufacturer based in Round Rock, Texas. The marketplace perhaps associates Dell Computer most with the personal computers it designs, manufactures and sells for home and office use, but Dell also operates in the enterprise computing market with servers, data storage devices, network switches and computer cluster lines. Personal Digital Assistants, software and peripherals, including printers, round out Dell's product offerings.
History
Michael Dell founded the company in 1984 (under the name "PC's Limited") while a freshman at the University of Texas at Austin. The company became successful, so Dell dropped out of university at the age of nineteen to run the business full-time.
In 1985, Dell produced the first computer of its own design (the Dell Turbo), which contained a fast Intel 8088 processor running at a speed of 8 megahertz.
In 1987, the company became Dell Computer Corporation.
In 1999 Dell overtook Compaq to become the largest seller of personal computers in the United States. In 2002 Dell lost the lead to Hewlett-Packard, which acquired Compaq in 2002. In 2003 Dell again regained the lead.
To recognize the company's expansion beyond computers, the stockholders approved changing the company name to "Dell, Inc." at the annual company meeting in 2003.
The Dell direct business model, which eliminates the middleman, has a reputation for its speed of sale-to-delivery of the company's products. Dell builds computers to order and this keeps its inventory costs low. Customers pay for product items before Dell builds those items: this gives Dell a negative cash conversion cycle.
Dell has rolled out its direct sales model in all the major international markets, and has achieved rapid growth in market share in most of them. In 2004, the share of sales coming from international markets increased, as confirmed in the company's press releases for the first two quarters of its Fiscal 2005 year.
Dell International Services functions as a support division of Dell.
In 2004, Kevin B. Rollins became Dell's chief executive officer. On December 22, 2004, the company announced that it would build a new assembly plant near Winston-Salem, North Carolina; the city and county provided Dell with $37.2 million in incentive packages; the state provided approximately $250 million in incentives and tax breaks. [1] (http://www.journalnow.com/servlet/Satellite?pagename=WSJ%2FMGArticle%2FWSJ_BasicArticle&c=MGArticle&cid=1031779834649)
Products and services
Brands
Dell markets its products under many brand names, such as:
- Optiplex
- Dimension
- Latitude - commercially focused laptops
- Inspiron - consumer-focused laptops
- Precision
- PowerEdge - larger corporate servers
- PowerVault - storage-oriented hardware: tape arrays and disk arrays
- XPS - gaming gear
The corporation markets certain brand names to different consumer segments. It typically sells the Optiplex, Latitude, and Precision names to mid and large business customers, where the company's advertising emphasizes long life-cycle, reliability and serviceability. The Dimension, Inspiron, and XPS brands have an orientation towards consumers, students, and small home office environments, emphasizing value, performance and expandability.
Dell recently re-introduced the Dell XPS brand to target the lucrative gaming market. Dell XPS desktop systems use blue rather than the black cases found on newer Dell PCs.
Software and operating systems
Dell currently ships Windows XP as the operating system for most of its new computers, but it also offers Red Hat and SUSE for servers. Certain computers get sold "bare-bones" with a FreeDOS disk included in the box. On Dell's Windows machines, the manufacturer bundles a large amount of software. Some have accused Dell of shipping spyware and claim that its technical support team have instructions not to support its de-installation.
Non computer products
Dell has expanded into non-computer products, including the Dell Digital Jukebox ("Dell DJ") (a portable digital audio player), USB keydrives, televisions, Pocket PCs, and printers.
Support
Dell offers a telephone-based support system. Customers encountering problems after the shipping of a system can call Dell Support and receive troubleshooting help over the phone.
Corporate activity
Financial information
Dell incorporated as a Texas corporation in 1984 with a capitalization of US$ 1000, the minimum allowed by Texas law. Dell stock trades on the Nasdaq stock exchange in New York under the symbol DELL. At 31 December 2004, the company had a market capitalisation of $104.69 billion.
In its fiscal year ended 31 January 2004, Dell made a net profit of $2,645 million on revenue of $41,444 million. Sales in the Americas represented 69% of total revenue, Europe 21% and Asia Pacific 10%.
Advertising
Dell advertises heavily on television, on the Internet, in magazines and in newspapers with constant special offers to encourage sales, since they do not sell their products in the retail environment. However Dell has installed kiosks in major malls which showcase their newest products, and which allow potential customers to order a product for shipment to their house.
A popular, widely parodied television and print ad campaign in the USA in the early 2000s featured young actor Benjamin Curtis playing the part of "Steven" - a cocky, and lightly mischievous blond-haired kid, who comes to the assistance of bereft computer purchasers. Each television advertisement usually ended with Steven's telltale phrase: "Dude, you're gettin' a DELL!" This ad campaign ceased abruptly when authorities arrested Curtis on drug-possession charges.
Diversity
Dell received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2004, the third year of the report.
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