Dell Inc. is an American technology company that develops, sells, repairs, and supports personal computers (PCs), servers, data storage devices, , software, computer including printers and among other products and services. Dell is based in Round Rock, Texas.
Founded by Michael Dell in 1984, Dell started making IBM clone computers and pioneered selling cut-price PCs directly to customers, managing its supply chain and electronic commerce. The company rose rapidly during the 1990s and in 2001 it became the largest global PC vendor for the first time. Dell was a pure hardware vendor until 2009 when it acquired Perot Systems. Dell then entered the market for IT services. The company has expanded storage and networking systems. In the late 2000s, it began expanding from offering computers only to delivering a range of technology for enterprise customers.
Dell is a subsidiary of Dell Technologies, a Public company, as well as a component of the NASDAQ-100 and S&P 500. Dell is ranked 31st on the Fortune 500 list in 2022, up from 76th in 2021. It is also the sixth-largest company in Texas by total revenue, according to Fortune magazine. It is the second-largest non-oil company in Texas. it is the world's third-largest personal computer vendor by unit sales, after Lenovo and HP. In 2015, Dell acquired the enterprise technology firm EMC Corporation, together becoming divisions of Dell Technologies. Dell EMC sells data storage, information security, virtualization, analytics, and cloud computing.
In 1985, PC's Limited launched its first computer, the "Turbo PC," priced at US$795 (). The Turbo PC featured an Intel 8088-compatible processor with a maximum speed of 8 MHz. PC's Limited marketed these systems through national computer magazines, selling directly to consumers while custom-assembling each unit based on a range of options. This approach allowed them to offer competitive prices compared to retail brands, coupled with the convenience of pre-assembled units, making them one of the early success stories of this business model. The company grossed over $73 million in its first year of operation. The company dropped the PC's Limited name in 1987 to become Dell Computer Corporation and began expanding globally. The reasoning was that this new company name better reflected its presence in the business market, and also resolved issues with the use of "Limited" in a company name in certain countries. The company set up its first international operations in Britain; 11 more followed within the next four years. In June 1988, Dell Computer's market capitalization grew by $30 million to $80 million () from its June 22 initial public offering of 3.5 million shares at $8.50 a share on NASDAQ under the ticker symbol DELL. Frequently Asked Questions. . In 1989, Dell Computer set up its first on-site service programs in order to compensate for the lack of local retailers prepared to act as service centers. Also, the company launched its first laptop product, the Dell 316LT.
Senior vice president Joel Kocher told The Wall Street Journal in 1993 "this isn't a technology business anymore". His view, that PCs were commodities, was reportedly widely held by others in the company. They thought that Dell differentiated itself from others—like fellow Texas company and archrival Compaq—with its distribution expertise and "database engine" of customers that, Kocher said, could sell anything including non-technology products: "We're more like Mary Kay Cosmetics than we are like General Motors".
In 1993, to complement its own direct sales channel, Dell planned to sell PCs at big-box retail outlets such as Wal-Mart, which would have brought in an additional $125 million () in annual revenue. Bain Capital consultant Kevin Rollins persuaded Michael Dell to pull out of these deals, believing they would be money losers in the long run. Margins at retail were thin at best and Dell left the reseller channel in 1994. Rollins would soon join Dell full-time and eventually become the company president and CEO.
By the early 1990s the laptop computer market was both more profitable and faster-growing than the overall personal computer market. After discontinuing its unsuccessful existing products in 1993, and hiring John Medica—who had led development of the very successful Apple PowerBook—the company in 1994 introduced the Dell Latitude laptop line.
Originally, Dell did not emphasize the consumer market, due to the higher costs and low profit margins in selling to individuals and households; this changed when the company's Internet site took off in 1996 and 1997. While the industry's average selling price to individuals was going down, Dell's was going up, as second- and third-time computer buyers who wanted powerful computers with multiple features and did not need much technical support were choosing Dell. Dell found an opportunity among PC-savvy individuals who liked the convenience of buying direct, customizing their PC to their means, and having it delivered in days. In early 1997, Dell created an internal sales and marketing group dedicated to serving the home market and introduced a product line designed especially for individual users.
Compaq, Gateway, IBM Aptiva, Packard Bell, and AST Research struggled and eventually left the market or were bought out.ZDNET Asia: Michael Dell back as CEO February 1, 2007. Visited: April 10, 2012 Dell surpassed Compaq to become the largest PC manufacturer in 1999.Rivkin, Jan W., and Porter, Michael E. Matching Dell, Harvard Business School Case 9-799-158, June 6, 1999. Operating costs made up only 10 percent of Dell's $35 billion in revenue in 2002 (), compared with 21 percent of revenue at Hewlett-Packard, 25 percent at Gateway, and 46 percent at Cisco. In 2002, when Compaq merged with Hewlett-Packard (the fourth-place PC maker), the newly combined Hewlett-Packard took the top spot for a time but struggled and Dell soon regained its lead. Dell grew the fastest in the early 2000s.In 2002, Dell expanded its product line to include televisions, handhelds, digital audio players, and printers. Chairman and CEO Michael Dell had repeatedly blocked President and COO Kevin Rollins's attempt to lessen the company's heavy dependency on PCs, which Rollins wanted to fix by acquiring EMC Corporation; a move that would eventually occur over 12 years later.
In 2003, at the annual company meeting, the stockholders approved changing the company name to "Dell Inc." to recognize the company's expansion beyond computers.
In 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. In July, Michael Dell stepped aside as chief executive officer while retaining his position as chairman of the board. Kevin Rollins, who had held a number of executive posts at Dell, became the new CEO. Despite no longer holding the CEO title, Dell essentially acted as a de facto co-CEO with Rollins.
Under Rollins, Dell purchased the computer hardware manufacturer Alienware in 2006. Dell Inc.'s plan anticipated Alienware continuing to operate independently under its existing management. Alienware expected to benefit from Dell's efficient manufacturing system.
The slowing sales growth has been attributed to the maturing PC market, which constituted 66% of Dell's sales, and analysts suggested that Dell needed to make inroads into non-PC business segments such as storage, services, and servers. Dell's price advantage was tied to its ultra-lean manufacturing for desktop PCs, but this became less important as savings became harder to find inside the company's supply chain, and as competitors such as Hewlett-Packard and Acer made their PC manufacturing operations more efficient to match Dell, weakening Dell's traditional price differentiation. Throughout the entire PC industry, declines in prices along with commensurate increases in performance meant that Dell had fewer opportunities to upsell to their customers. As a result, the company was selling a greater proportion of inexpensive PCs than before, which eroded profit margins. The laptop segment had become the fastest-growing of the PC market, but Dell produced low-cost notebooks in China like other PC manufacturers which eliminated Dell's manufacturing cost advantages, plus Dell's reliance on Internet sales meant that it missed out on growing notebook sales in big box stores. CNET has suggested that Dell was getting trapped in the increasing commoditization of high volume low margin computers, which prevented it from offering more exciting devices that consumers demanded.
Despite plans of expanding into other global regions and product segments, Dell was heavily dependent on US corporate PC market, as desktop PCs sold to both commercial and corporate customers accounted for 32 percent of its revenue, 85 percent of its revenue comes from businesses, and 64 percent of its revenue comes from North and South America, according to its 2006 third-quarter results. US shipments of desktop PCs were shrinking, and the corporate PC market, which purchases PCs in upgrade cycles, had largely decided to take a break from buying new systems. The last cycle started around 2002, three or so years after companies started buying PCs ahead of the perceived Y2K problems, and corporate clients were not expected to upgrade again until extensive testing of Microsoft's Windows Vista (expected in early 2007), putting the next upgrade cycle around 2008. Heavily dependent on PCs, Dell had to slash prices to boost sales volumes, while demanding deep cuts from suppliers.
Dell had long stuck by its direct sales model. Consumers had become the main drivers of PC sales in recent years, yet there had a decline in consumers purchasing PCs through the Web or on the phone, as increasing numbers were visiting consumer electronics retail stores to try out the devices first. Dell's rivals in the PC industry, HP, Gateway and Acer, had a long retail presence and so were well poised to take advantage of the consumer shift. The lack of a retail presence stymied Dell's attempts to offer consumer electronics such as flat-panel TVs and MP3 players. Dell responded by experimenting with mall kiosks, plus quasi-retail stores in Texas and New York.
Dell had a reputation as a company that relied upon supply chain efficiencies to sell established technologies at low prices, instead of being an innovator.Michael Dell had a risk-averse management style and he openly mocked rivals that spent on R&D and acquisitions, though by the late 2000s this may have contributed to Dell missing market shifts like mobile phones and tablet computers.[4] By the mid-2000s many analysts were looking to innovating companies as the next source of growth in the technology sector. Dell's low spending on R&D relative to its revenue (compared to IBM, Hewlett-Packard, and Apple Inc.)—which worked well in the commoditized PC market—prevented it from making inroads into more lucrative segments, such as MP3 players and later mobile devices. Increasing spending on R&D would have cut into the operating margins that the company emphasized. Dell had done well with a horizontal organization that focused on PCs when the computing industry moved to horizontal mix-and-match layers in the 1980s, but by the mid-2000 the industry shifted to vertically integrated stacks to deliver an end-to-end IT product, and Dell lagged far behind competitors like Hewlett-Packard and Oracle.
Dell's reputation for poor customer service, which was exacerbated as it moved call centers offshore and as its growth outstripped its technical support infrastructure, came under increasing scrutiny on the Web. The original Dell model was known for high customer satisfaction when PCs sold for thousands of dollars but by the 2000s, the company could not justify that level of service when computers in the same line-up sold for hundreds of dollars. Rollins responded by shifting Dick Hunter from the head of manufacturing to head of customer service. Hunter, who noted that Dell's DNA of cost-cutting "got in the way," aimed to reduce call transfer times and have call center representatives resolve inquiries in one call. By 2006, Dell had spent $100 million in just a few months to improve on this and rolled out DellConnect to answer customer inquiries more quickly. In July 2006, the company started its Direct2Dell blog, and then in February 2007, Michael Dell launched IdeaStorm.com, asking customers for advice including selling Linux computers and reducing the promotional "bloatware" on PCs. These initiatives did manage to cut the negative blog posts from 49% to 22%, as well as reduce the "Dell Hell" prominent on Internet search engines.
There was also criticism that Dell used faulty components for its PCs, particularly the 11.8 million OptiPlex desktop computers sold to businesses and governments from May 2003 to July 2005 that suffered from Capacitor plague. A battery recall in August 2006, as a result of a Dell laptop catching fire, caused much negative attention for the company though later, Sony was found responsible for the manufacturing of the batteries, however a Sony spokesman said the problem concerned the combination of the battery with a charger, which was specific to Dell.
2006 marked the first year that Dell's growth was slower than the PC industry as a whole. By the fourth quarter of 2006, Dell lost its title of the largest PC manufacturer to Hewlett Packard whose Personal Systems Group was invigorated thanks to a restructuring initiated by their CEO Mark Hurd.CRN.COM: Rollins now out of job
On March 1, 2007, the company issued a preliminary quarterly earnings report showing gross sales of $14.4 billion, down 5% year-over-year, and net income of $687 million (30 cents per share), down 33%. Net earnings would have declined even more if not for the effects of eliminated employee bonuses, which accounted for six cents per share. NASDAQ extended the company's deadline for filing financials to May 4.
On April 23, 2008, Dell announced the closure of one of its biggest Canadian call-centers in Kanata, Ontario, terminating approximately 1100 employees, with 500 of those redundancies effective on the spot, and with the official closure of the center scheduled for the summer. The call-center had opened in 2006 after the city of Ottawa won a bid to host it. Less than a year later, Dell planned to double its workforce to nearly 3,000 workers add a new building. These plans were reversed, due to a high Canadian dollar that made the Ottawa staff relatively expensive, and also as part of Dell's turnaround, which involved moving these call-center jobs offshore to cut costs. The company had also announced the shutdown of its Edmonton, Alberta, office, losing 900 jobs. In total, Dell announced the ending of about 8,800 jobs in 2007–2008 — 10% of its workforce.
By the late 2000s, Dell's "configure to order" approach of manufacturing—delivering individual PCs configured to customer specifications from its US facilities was no longer as efficient or competitive with high-volume Asian contract manufacturers as PCs became powerful low-cost commodities. Dell closed plants that produced desktop computers for the North American market, including the Mort Topfer Manufacturing Center in Austin, Texas (original location) and Lebanon, Tennessee (opened in 1999) in 2008 and early 2009, respectively. The desktop production plant in Winston-Salem, North Carolina, received US$280 million in incentives from the state and opened in 2005 (), but ceased operations in November 2010. Dell's contract with the state required them to repay the incentives for failing to meet the conditions, and they sold the North Carolina plant to Herbalife.The Register: Dell cuts North-Carolina plant despite $280m sweetener, October 8, 2009. Visited: April 10, 2012 Much work was transferred to manufacturers in Asia and Mexico, or some of Dell's own factories overseas. On January 8, 2009, Dell announced the closure of its manufacturing plant in Limerick, Ireland, with the loss of 1,900 jobs and the transfer of production to its plant in Łodź in Poland.FinFacts Ireland Dell remains Ireland's biggest manufacturing exporter despite closing Limerick plant, November 16, 2012. Visited: April 23, 2013.
In the shrinking PC industry, Dell continued to lose market share, as it dropped below Lenovo in 2011 to fall to number three in the world. Dell and fellow American contemporary Hewlett Packard came under pressure from Asian PC manufacturers Lenovo, Asus, and Acer, all of which had lower production costs and were willing to accept lower profit margins. In addition, while the Asian PC vendors had been improving their quality and design—for instance, Lenovo's ThinkPad series was winning corporate customers away from Dell's laptops—Dell's customer service and reputation had been slipping. Dell remained the second-most profitable PC vendor, as it took 13 percent of operating profits in the PC industry during Q4 2012, behind Apple's Mac that took 45 percent, seven percent at Hewlett Packard, six percent at Lenovo and Asus, and one percent for Acer. "PC floggers scavenge for crumbs as Apple hoovers up profits • The Channel". channelregister.co.uk.
Dell attempted to offset its declining PC business, which still accounted for half of its revenue and generates steady cash flow, by expanding into the enterprise market with servers, networking, software, and services. It avoided many of the acquisition write-downs and management turnover that plagued its chief rival Hewlett Packard. Despite spending $13 billion on acquisitions to diversify its portfolio beyond hardware, the company was unable to convince the market that it could thrive or made the transformation in the post-PC world, as it suffered continued declines in revenue and share price. Dell's market share in the corporate segment was previously a "moat" against rivals but this has no longer been the case as sales and profits have fallen precipitously.
Michael Dell said of the February offer "I believe this transaction will open an exciting new chapter for Dell, our customers and team members". Dell rival Lenovo responded to the buyout, saying, "the financial actions of some of our traditional competitors will not substantially change our outlook."
In March 2013, the Blackstone Group and Carl Icahn expressed interest in purchasing Dell. In April 2013, Blackstone withdrew their offer, citing deteriorating business. Other private equity firms such as KKR & Co. and TPG Capital declined to submit alternative bids for Dell, citing the uncertain market for personal computers and competitive pressures, so the "wide-open bidding war" never materialized. Analysts said that the biggest challenge facing Silver Lake would be to find an "exit strategy" to profit from its investment, which would be when the company would hold an IPO to go public again, and one warned "But even if you can get a $25bn enterprise value for Dell, it will take years to get out."
In May 2013, Michael Dell joined his board in voting for the offer.Murphy, Tom (May 31, 2013) "Dell Board Recommends Michael Dell Buyout Offer". Associated Press via ABC News. The following August he reached a deal with the special committee on the board for $13.88 per share, a raised price of $13.75 plus a special dividend of 13 cents, as well as a change to the voting rules. "Michael Dell closes in on prize with sweeter $25 billion deal". Reuters. The $13.88 cash offer (plus a $.08 per share dividend for the third fiscal quarter) was accepted on September 12 "Dell Takes Itself Private With $25 Billion Buyout". WIRED. September 2013 and closed on October 30, 2013, ending Dell's 25-year run as a publicly traded company.
After the buyout, the newly private Dell offered a Voluntary Separation Program that they expected to reduce their workforce by up to seven percent. The reception to the program so exceeded the expectations that Dell may be forced to hire new staff to make up for the losses.
The announcement came two years after Dell Inc. returned to private ownership, claiming that it faced bleak prospects and would need several years out of the public eye to rebuild its business. It was thought that the company's value had roughly doubled since then. EMC was being pressured by Elliott Management, a hedge fund holding 2.2% of EMC's stock, to reorganize their unusual "Federation" structure, in which EMC's divisions were effectively being run as independent companies. Elliott argued this structure deeply undervalued EMC's core "EMC II" data storage business, and that increasing competition between EMC II and VMware products was confusing the market and hindering both companies. The Wall Street Journal estimated that in 2014 Dell had revenue of $27.3 billion () from personal computers and $8.9 billion from servers, while EMC had $16.5 billion from EMC II, $1 billion from RSA Security, $6 billion from VMware, and $230 million from Pivotal Software. EMC owned around 80 percent of the stock of VMware. The proposed acquisition maintained VMware as a separate company, held via a new tracking stock, while the other parts of EMC rolled into Dell. Once the acquisition closed, Dell began publishing quarterly financial results again, having ceased these after going private in 2013.
The combined business was expected to address the markets for scale-out architecture, converged infrastructure and private cloud computing, playing to the strengths of both EMC and Dell. Commentators questioned the deal, with FBR Capital Markets saying that though it makes a "ton of sense" for Dell, it was a "nightmare scenario that would lack strategic synergies" for EMC. Fortune said there was a lot for Dell to like in EMC's portfolio, but "does it all add up enough to justify tens of billions of dollars for the entire package? Probably not." The Register reported the view of William Blair & Company that the merger would "blow up the current IT chess board", forcing other IT infrastructure vendors to restructure to achieve scale and vertical integration. The value of VMware stock fell 10% after the announcement, valuing the deal at around $63–64bn rather than the $67bn originally reported. Key investors backing the deal besides Dell were Singapore's Temasek Holdings and Silver Lake Partners.
On September 7, 2016, Dell completed the merger with EMC, which involved the issuance of $45.9 billion () in debt and $4.4 billion () of common stock. At the time, some analysts claimed that Dell's acquisition of the former Iomega could harm the LenovoEMC partnership.
In July 2018, Dell announced intentions to become a publicly traded company again by paying $21.7 billion () in both cash and stock to buy back shares from its stake in VMware, offering shareholders roughly 60 cents on the dollar as part of the deal. In November, Carl Icahn (9.3% owner of Dell) sued the company over plans to go public. As a result of pressure from Icahn and other activist investors, Dell renegotiated the deal, ultimately offering shareholders about 80% of market value. As part of this deal, Dell once again became a public company, with the original Dell computer business and Dell EMC operating under the newly created parent, Dell Technologies.
Post-acquisition, Dell was re-organized with a new parent company, Dell Technologies, and into three main business divisions: Client Solutions Group, Infrastructure Solutions Group and VMware.
In January 2021, Dell reported $94 billion () in sales and $13 billion () operating cash flow during 2020.
On March 1, 2024, Dell's stock hit all-time high after earnings. It delivered a strong performance from its artificial intelligence unit that sent shares up nearly 40%, its highest daily gain since the company went public in 2018. In August 2024, the company announced it would be laying off 12,500 employees—10% of its workforce—in order to invest in artificial intelligence initiatives.
CNET's News.com on August 17, 2006, cited Dell's CEO Kevin Rollins as attributing the move to AMD processors to lower costs and to AMD technology. AMD's senior VP in commercial business, Marty Seyer, stated: "Dell's wider embrace of AMD processor-based offerings is a win for Dell, for the industry and most importantly for Dell customers."
On October 23, 2006, Dell announced new AMD-based servers — the PowerEdge 6950 and the PowerEdge SC1435.
On November 1, 2006, Dell's website began offering notebooks based on AMD processors (the Inspiron 1501 with a display) with the choice of a single-core MK-36 processor, dual-core Turion X2 chips or Mobile Sempron.
In 2017, Dell released the AlienWare 17 gaming laptop. The model was primarily based on NVIDIA GeForce GTX 1080 systems.
On February 26, 2007, Dell announced that it had commenced a program to sell and distribute a range of computers with pre-installed Linux distributions as an alternative to Microsoft Windows. Dell indicated that Novell's SUSE Linux Linux would appear first. However, the next day, Dell announced that its previous announcement related to certifying the hardware as ready to work with Novell SUSE Linux and that it (Dell) had no plans to sell systems pre-installed with Linux in the near future. On March 28, 2007, Dell announced that it would begin shipping some desktops and laptops with Linux pre-installed, although it did not specify which distribution of Linux or which hardware would lead. Ideas In Action On April 18, a report appeared suggesting that Michael Dell used Ubuntu on one of his home systems. On May 1, 2007, Dell announced it would ship the Ubuntu Linux distribution. On May 24, 2007, Dell started selling models with Ubuntu Linux 7.04 pre-installed: a laptop, a budget computer, and a high-end PC.
On June 27, 2007, Dell announced on its Direct2Dell blog that it planned to offer more pre-loaded systems (the new Dell Inspiron desktops and laptops). After the Dell IdeaStorm site supported extending the bundles beyond the US market, Dell later announced more international marketing. Ubuntu on Two New Inspirons; Update from the Linux Live Expert Forum - Direct2Dell On August 7, 2007, Dell officially announced that it would offer one notebook and one desktop in the UK, France and Germany with Ubuntu "pre-installed". At LinuxWorld 2007 Dell announced plans to provide Novell's SUSE Linux Enterprise Desktop on selected models in China, "factory-installed". Linux for Consumers in the U.K. France, and Germany; Dell/Red Hat Solutions & More - Direct2Dell On November 30, 2007, Dell reported shipping 40,000 Ubuntu PCs. On January 24, 2008, Dell in Germany, Spain, France, and the United Kingdom launched a second laptop, an XPS M1330 with Ubuntu 7.10, for 849 euro or GBP 599 upwards. On February 18, 2008, Dell announced that the Inspiron 1525 would have Ubuntu as an optional operating system. On February 22, 2008, Dell announced plans to sell Ubuntu in Canada and in Latin America From September 16, 2008, Dell has shipped both Dell Ubuntu Netbook Remix and Windows XP Home versions of the Inspiron Mini 9 and the Inspiron Mini 12. Dell shipped the Inspiron Mini laptops with Ubuntu version 8.04.
As of 2021, Dell continues to offer select laptops and workstations with Ubuntu Linux pre-installed, under the "Developer Edition" moniker.
Dell previously had its headquarters in the Arboretum complex in northern Austin, Texas.Pope, Kyle. " Dell chief disbands project." Austin American-Statesman. February 25, 1990. A1. Retrieved May 4, 2010. "Dell is headquartered at the Arboretum complex in North Austin and employs about 1200 people." PC Magazine. Volume 12, 1993. 175. "Dell Computer Corp., 9505 Arboretum Blvd., Austin, TX 78759." In 1989 Dell occupied in the Arboretum complex.Pope, Kyle. " Dell plans expansion and move High-tech firm inks Braker Center deal." Austin American-Statesman. January 24, 1989. B7. Retrieved May 4, 2010. "Dell occupies 127000 square feet of office space at the Arboretum." In 1990, Dell had 1,200 employees in its headquarters. In 1993, Dell submitted a document to Round Rock officials, titled "Dell Computer Corporate Headquarters, Round Rock, Texas, May 1993 Schematic Design." Despite the filing, during that year the company said that it was not going to move its headquarters.Ladendorf, Kirk and R. Michelle Breyer. " Despite document, Dell says no headquarters move planned." Austin American-Statesman. May 22, 1993. E1. Retrieved May 4, 2010. In 1994, Dell announced that it was moving most of its employees out of the Arboretum, but that it was going to continue to occupy the top floor of the Arboretum and that the company's official headquarters address would continue to be the Arboretum. The top floor continued to hold Dell's board room, demonstration center, and visitor meeting room. Less than one month prior to August 29, 1994, Dell moved 1,100 customer support and telephone sales employees to Round Rock." Dell to keep top floor at Arboretum offices." Austin American-Statesman. August 29, 1994. C1. Retrieved May 4, 2010. Dell's lease in the Arboretum had been scheduled to expire in 1994.Ladendorf, Kirk and Mike Todd. " Dell seeks space for expansion Firm makes proposal for tax abatements." Austin American-Statesman. November 5, 1992. B4. Retrieved May 4, 2010. "The lease on the company's headquarters building at the Arboretum expires in 1994."
By 1996, Dell was moving its headquarters to Round Rock.Ladendorf, Kirk. " Dell expanding in Central Texas." Austin American-Statesman. October 1, 1996. A1. Retrieved May 4, 2010. As of January 1996, 3,500 people still worked at the current Dell headquarters. One building of the Round Rock headquarters, Round Rock 3, had space for 6,400 employees and was scheduled to be completed in November 1996.Mahoney, Jerry. " Dell's success is Round Rock's gain." Austin American-Statesman. January 9, 1996. A1. Retrieved May 4, 2010. "Dell will have room for 6400 employees when it finishes Round Rock 3 in November. The company, which still employs about 3500 people at its headquarters." In 1998 Dell announced that it was going to add two buildings to its Round Rock complex, adding of office space to the complex.Mahoney, Jerry. " Dell to expand its office complex." Austin American-Statesman. May 30, 1998. D1. Retrieved May 4, 2010.
In 2000, Dell announced that it would lease of space in the Las Cimas office complex in unincorporated Travis County, Texas, between Austin and West Lake Hills, to house the company's executive offices and corporate headquarters. 100 senior executives were scheduled to work in the building by the end of 2000.Pletz, John. " Dell moving executives closer to Austin." ( Alternate link) Austin American-Statesman. May 9, 2000. A1. Retrieved May 4, 2010. In January 2001, the company leased the space in Las Cimas 2, located along Loop 360. Las Cimas 2 housed Dell's executives, the investment operations, and some corporate functions. Dell also had an option for of space in Las Cimas 3." Dell seeks to sublease Las Cimas offices." Austin Business Journal. Friday March 8, 2002. Retrieved May 4, 2010. After a slowdown in business required reducing employees and production capacity, Dell decided to sublease its offices in two buildings in the Las Cimas office complex.Pletz, John. " Article: Dell Leaders to Return to Round Rock, Texas, Campus." Austin American-Statesman. March 8, 2002. Retrieved May 4, 2010. In 2002 Dell announced that it planned to sublease its space to another tenant; the company planned to move its headquarters back to Round Rock once a tenant was secured. By 2003, Dell moved its headquarters back to Round Rock. It leased all of Las Cimas I and II, with a total of , for about a seven-year period after 2003. By that year roughly of that space was absorbed by new subtenants.Hudgins, Matt. " Dell space taken." Austin Business Journal. Friday May 9, 2003. Retrieved May 4, 2010.
In 2008, Dell switched the power sources of the Round Rock headquarters to more environmentally friendly ones, with 60% of the total power coming from TXU Energy wind farms and 40% coming from the Austin Community Landfill gas-to-energy plant operated by Waste Management, Inc.
Dell facilities in the United States are located in Austin, Texas; Nashua, New Hampshire; Nashville, Tennessee; Oklahoma City, Oklahoma; Peoria, Illinois; Hillsboro, Oregon (Portland area); Winston-Salem, North Carolina; Eden Prairie, Minnesota (Compellent); Bowling Green, Kentucky; Lincoln, Nebraska; and Miami, Florida. Facilities located abroad include Penang, Malaysia; Xiamen, China; Bracknell, UK; Manila, Philippines Chennai, India; Hyderabad, India; Noida, India; Hortolândia and Porto Alegre, Brazil; Bratislava, Slovakia; Łódź, Poland; Panama City, Panama; Dublin and Limerick, Ireland; Casablanca, Morocco and Montpellier, France.
The US and India are the only countries that have all Dell's business functions and provide support globally: research and development, manufacturing, finance, analysis, and customer care. Dell was recognized as "India's Most Desired Brand in 2023", as per TRA's Most Desired Brands report 2023.
To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time (JIT) manufacturing approach, which minimizes inventory costs. Low inventory is another signature of the Dell business model—a critical consideration in an industry where components depreciate very rapidly.Kraemer, K. L. and Dedrick, J. (2002) "Dell Computer: Organization of a Global Production Network", Center for Research on Information Technology and Organizations.
Dell's manufacturing process covers assembly, software installation, functional testing (including "burn-in"), and quality control. Throughout most of the company's history, Dell manufactured desktop machines in-house and contracted out the manufacturing of base notebooks for configuration in-house.Company Annual Reports, various years. The company's approach has changed, as cited in the 2006 Annual Report, which states, "We are continuing to expand our use of original design manufacturing partnerships and manufacturing outsourcing relationships." The Wall Street Journal reported in September 2008 that "Dell has approached contract computer manufacturers with offers to sell" their plants.Scheck, J: "Dell Plans to Sell Factories in Effort to Cut Costs", The Wall Street Journal, September 5, 2008. By the late 2000s, Dell's "configure to order" approach of manufacturing—delivering individual PCs configured to customer specifications from its US facilities was no longer as efficient or competitive with high-volume Asian contract manufacturers as PCs became powerful low-cost commodities.
Assembly of desktop computers for the North American market formerly took place at Dell plants in Austin, Texas, (original location) and Lebanon, Tennessee, (opened in 1999), which were closed in 2008 and early 2009, respectively. The plant in Winston-Salem, North Carolina, opened in 2005 but ceased operations in November 2010. Most of the work that used to take place in Dell's US plants was transferred to contract manufacturers in Asia and Mexico, or some of Dell's own factories overseas. The Miami, Florida, facility of its Alienware subsidiary remains in operation, while Dell continues to produce its servers (its most profitable products) in Austin, Texas.
Dell assembled computers for the EMEA market at the Limerick facility in the Republic of Ireland, and once employed about 4,500 people in that country. Dell began manufacturing in Limerick in 1991 and went on to become Ireland's largest exporter of goods and its second-largest company and foreign investor. On January 8, 2009, Dell announced that it would move all Dell manufacturing in Limerick to Dell's new plant in the Polish city of Łódź by January 2010. 1,900 jobs lost at Dell in Limerick. RTÉ New Report — January 8, 2009 European Union officials said they would investigate a €52.7million aid package the Polish government used to attract Dell away from Ireland. EU to investigate Dell aid package. RTÉ New Report — January 8, 2009 European Manufacturing Facility 1 (EMF1, opened in 1990) and EMF3 form part of the Raheen Industrial Estate near Limerick. EMF2 (previously a Wang facility, later occupied by Flextronics, situated in Castletroy) closed in 2002, and Dell Inc. has consolidated production into EMF3 (EMF1 now contains only offices). Subsidies from the Polish government did keep Dell for a long time. After ending assembly in the Limerick plant the Cherrywood Technology Campus in Dublin was the largest Dell office in the republic with over 1200 people in sales (mainly UK & Ireland), support (enterprise support for EMEA) and research and development for cloud computing, but no more manufacturing exceptIDA Ireland website on Dell , visited October 12, 2012 Dell's Alienware subsidiary, which manufactures PCs in an Athlone, Ireland, plant. Whether this facility will remain in Ireland is not certain.RTE News: Fears for 70 jobs at Athlone's Alienware facility, March 25, 2009. Checked: October 12, 2012 Dell started production at EMF4 in Łódź, Poland, in late 2007.
Dell moved desktop, notebook and PowerEdge server manufacturing for the South American market from the Eldorado do Sul plant opened in 1999, to a new plant in Hortolândia, Brazil, in 2007. Dell Starts Manufacturing Servers in Brazil. Dell, Porto Alegre, Brazil, February 19, 2001
Its Business/Corporate class includes:
Dell's Home Office/Consumer class includes:
Dell's Peripherals class includes Keydrive, , and printers; Dell monitors includes LCD, Plasma display and Video projector for HDTV and Computer display. Dell UltraSharp is further a high-end brand of monitors.
Dell service and support brands include the Dell Solution Station (extended domestic support services, previously "Dell on Call"), Dell Support Center (extended support services abroad), Dell Business Support (a commercial service-contract that provides an industry-certified technician with a lower call-volume than in normal queues), Dell Everdream Desktop Management ("Software as a service" remote-desktop management, originally a SaaS company founded by Elon Musk's cousin, Lyndon Rive, which Dell bought in 2007), and Your Tech Team (a support-queue available to home users who purchased their systems either through Dell's website or through Dell phone-centers).
Discontinued products and brands include Dell Axim (PDA; discontinued April 9, 2007), Goodbye, Axim. Direct2Dell.com. April 11, 2007 Dell Dimension (home and small office desktop computers; discontinued July 2007), Dell Digital Jukebox (MP3 player; discontinued August 2006), Dell PowerApp (application-based servers), Dell Optiplex (desktop and tower computers previously supported to run server and desktop operating systems), Dell Unix (an SVR4-based Unix operating system for its Dell-branded PCs and workstations; discontinued in 1993) and Dell Mobile Connect(Windows Mobile application; discontinued July 31, 2022).
Day-to-day operations of the company are run by the Global Executive Management Committee, which sets strategic direction. Dell has regional senior vice-presidents for countries other than the United States.
A popular United States television and print ad campaign in the early 2000s featured the actor Ben Curtis playing the part of "Steven", a lightly mischievous blond-haired youth who came to the assistance of bereft computer purchasers. Each television advertisement usually ended with Steven's catch-phrase: "Dude, you're gettin' a Dell!"
A subsequent advertising campaign featured at Dell headquarters (with Curtis' character appearing in a small cameo at the end of one of the first commercials in this particular campaign).
In 2007, Dell switched advertising agencies in the US from BBDO to Working Mother Media. In July 2007, Dell released new advertising created by Working Mother to support the Inspiron and XPS lines. The ads featured music from the Flaming Lips and Devo who re-formed especially to record the song in the ad "Work it Out". Also in 2007, Dell began using the slogan "Yours is here" to say that it customizes computers to fit customers' requirements.
Beginning in 2011, Dell began hosting a conference in Austin, Texas, at the Austin Convention Center titled "Dell World". The event featured new technology and services provided by Dell and Dell's partners. In 2011, the event was held October 12–14. In 2012, the event was held December 11–13. In 2013, the event was held December 11–13. In 2014, the event was held November 4–6.
Dell India has started Online Ecommerce website with its Dell Partner www.compuindia.com GNG Electronics Pvt Ltd "Dell launches online e-store Dell Express Ship Affiliate". The Hindu. June 3, 2013 termed as Dell Express Ship Affiliate(DESA).
The main objective was to reduce the delivery time. Customers who visit Dell India official site are given the option to buy online which then will be redirected to Dell affiliate website compuindia.com.
Since some shoppers in certain markets show reluctance to purchase technological products through the phone or the Internet, Dell has looked into opening retail operations in some countries in Central Europe and Russia. In April 2007, Dell opened a retail store in Budapest. In October of the same year, Dell opened a retail store in Moscow.
In the UK, HMV's flagship Trocadero store has sold Dell XPS PCs since December 2007. From January 2008 the UK stores of DSGi have sold Dell products (in particular, through Currys and PC World stores). As of 2008, the large supermarket chain Tesco has sold Dell laptops and desktops in outlets throughout the UK.
In May 2008, Dell reached an agreement with the office supply chain, Officeworks (part of Coles Group), to stock a few modified models in the Inspiron desktop and notebook range. These models have slightly different model numbers, but almost replicate the ones available from the Dell Store. Dell continued its retail push in the Australian market with its partnership with Harris Technology (another part of Coles Group) in November of the same year. In addition, Dell expanded its retail distributions in Australia through an agreement with the discount electrical retailer, The Good Guys, known for "Slashing Prices". Dell agreed to distribute a variety of makes of both desktops and notebooks, including Studio and Dell XPS systems in late 2008. Dell and Dick Smith Electronics (owned by Woolworths Limited) reached an agreement to expand within Dick Smith's 400 stores throughout Australia and New Zealand in May 2009 (1 year since Officeworks—owned by Coles Group—reached a deal). The retailer has agreed to distribute a variety of Inspiron and Studio notebooks, with minimal Studio desktops from the Dell range. , Dell continues to run and operate its various kiosks in 18 shopping centers throughout Australia. On March 31, 2010, Dell announced to Australian Kiosk employees that they were shutting down the Australian/New Zealand Dell kiosk program.
In Germany, Dell is selling selected smartphones and notebooks via Media Markt and Saturn, as well as some shopping websites.
, Dell lost its lead in the PC business to Hewlett-Packard. Both Gartner and IDC estimated that in the third quarter of 2006, HP shipped more unitsKirdahy, Matthew (October 19, 2006) [56]. Forbes. worldwide than Dell did. Dell's 3.6% growth paled in comparison to HP's 15% growth during the same period. The problem got worse in the fourth quarter, when Gartner estimated that Dell PC shipments declined 8.9% (versus HP's 23.9% growth). As a result, at the end of 2006 Dell's overall PC market share stood at 13.9% (versus HP's 17.4%).
IDC reported that Dell lost more server market share than any of the top four competitors in that arena. IDC's Q4 2006 estimates show Dell's share of the server market at 8.1%, down from 9.5% in the previous year. This represents an 8.8% loss year-over-year, primarily to competitors EMC and IBM. As of 2021, Dell is the third-largest PC manufacturer after Lenovo and HP.
On October 17, 2011, Dell discontinued reselling all EMC storage products, ending the partnership 2 years early. Later Dell would acquire and merge with EMC in the largest tech merger to date.
Dell was the first company to publicly state a timeline for the elimination of toxic polyvinyl chloride (PVC) and brominated flame retardants (BFRs), which it planned to phase out by the end of 2009. It revised this commitment and now aims to remove toxics by the end of 2011 but only in its computing products.
In March 2010, Greenpeace activists protested at Dell offices in Bangalore, Amsterdam and Copenhagen calling for Dell's founder and CEO Michael Dell to "drop the toxics" and claiming that Dell's aspiration to be 'the greenest technology company on the planet' was "hypocritical". Dell has launched its first products completely free of PVC and BFRs with the G-Series monitors (G2210 and G2410) in 2009.
In its 2012 report on progress relating to conflict minerals, the Enough Project rated Dell the eighth-highest of 24 consumer electronics companies.
On June 5, 2007, Dell set a goal of becoming the greenest technology company on Earth for the long term. The company launched a zero-carbon initiative that includes:
Dell reports its environmental performance in an annual Corporate Social Responsibility (CSR) Report that follows the Global Reporting Initiative (GRI) protocol. Dell's 2008 CSR report ranked as "Application Level B" as "checked by GRI".Dell 2008 Corporate Social Responsibility Report: Section "GRI Performance Indicators Index", Dell Inc, 2008. Retrieved October 28, 2012
The company aims to reduce its external environmental impact through an energy-efficient evolution of products, and also reduce its direct operational impact through energy-efficiency programs.
In 2005, complaints about Dell more than doubled to 1,533, after earnings grew 52% that year.
In 2006, Dell acknowledged that it had problems with customer service. Issues included call transfers Dell Spiffs Up Its Service. Business Week. June 13, 2006
of more than 45% of calls and long wait times. Dell's blog detailed the response: "We're spending more than a $100 million—and a lot of blood, sweat, and tears of talented people—to fix this." No Magic Wands For Customer Service, The Official Dell blog. July 13, 2006 Later in the year, the company increased its spending on customer service to $150 million. Since 2018, Dell has seen significant increase in consumer satisfaction. Moreover, their customer service has been praised for its prompt and accurate answers to most questions, especially those directed to their social media support. Dell Customer Service Rating 2018: Undercover Tech Support Review. Laptop Mag. April 24, 2019. Notebook Service and Support Satisfaction Survey – Who has the best laptop service? – NotebookCheck.net Reviews. Notebookcheck. April 15, 2018.
On August 17, 2007, Dell Inc. announced that after an internal investigation into its accounting practices it would restate and reduce earnings from 2003 through to the first quarter of 2007 by a total amount of between $50 million and $150 million, or 2 cents to 7 cents per share. Dell pares past profits because of "massaging". The Guardian. August 17, 2007. The investigation, begun in November 2006, resulted from concerns raised by the U.S. Securities and Exchange Commission over some documents and information that Dell Inc. had submitted. It was alleged that Dell had not disclosed large exclusivity payments received from Intel for agreeing not to buy processors from rival manufacturer AMD. In 2010 Dell finally paid $100 million () to settle the SEC's charges of fraud. Michael Dell and other executives also paid penalties and suffered other sanctions, without admitting or denying the charges.
In July 2009, Dell apologized after drawing the ire of the Taiwanese Consumer Protection Commission for twice refusing to honor a flood of orders against unusually low prices offered on its Taiwanese website. In the first instance, Dell offered a 19" LCD panel for $15. In the second instance, Dell offered its Latitude E4300 notebook at NT$18,558 (US$580), 70% lower than the usual price of NT$60,900 (US$1900). Concerning the E4300, rather than honor the discount taking a significant loss, the firm withdrew orders and offered a voucher of up to NT$20,000 (US$625) a customer in compensation. The consumer rights authorities in Taiwan fined Dell NT$1 million (US$31250) for customer rights infringements. Many consumers sued the firm for unfair compensation. A court in southern Taiwan ordered the firm to deliver 18 laptops and 76 flat-panel monitors to 31 consumers for NT$490,000 (US$15,120), less than a third of the normal price. Dell loses Taiwan consumer lawsuit: report, June 7, 2010. Visited: October 28, 2012. The court said the event could hardly be regarded as mistakes, as the prestigious firm said the company mispriced its products twice on its Taiwanese website within 3 weeks.Taiwanese lawsuit: full-text verdict. Retrieved October 28, 2012
After Michael Dell made a $24.4 billion buyout bid in August 2013 (), activist shareholder Carl Icahn sued the company and its board in an attempt to derail the bid and promote his own forthcoming offer.
In 2020, the Australian Strategic Policy Institute accused at least 82 major brands, including Dell, of being connected to forced Uyghurs labor in Xinjiang.
Dell and AMD
Dell and desktop Linux
Corporate affairs
Business trends
2016 50.5 −1.1 101 2017 61.5 −3.6 138 2018 79.1 −2.8 145 2019 90.3 −2.3 157 2020 91.9 4.6 165 2021 86.7 2.2 158 2022 101 4.9 133 2023 101 2.4 133 2024 88.4 3.2 120
Senior leadership
List of chairmen
List of chief executives
List of Dell marketing slogans
Acquisitions
+ List of companies acquired by Dell Inc.
Dell facilities
Manufacturing
Products
Scope and brands
Security
Self-signed root certificate
Dell Foundation Services
Commercial aspects
Organization
Marketing
Dell partner program
Global analytics
Criticisms of marketing of laptop security
Retail
United States
Kiosks
Retail stores
Competition
Partnership with EMC
Environmental record
Green initiatives
Criticism
See also
Further reading
External links
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