Dell

"Dell Inc." redirects here. For its parent company, seeDell Technologies.For other uses, seeDell (disambiguation).

Dell Inc.

Logo since 2016
Headquarters in Round Rock, Texas
Formerly	PC's Limited (1984–1987) Dell Computer Corporation (1987–2003)
Company type	Subsidiary
Traded as	Nasdaq:DELL
Industry	Personal computers Computer software
Founded	May 3, 1984(1984-05-03)inAustin, Texas,U.S.
Founder	Michael Dell
Headquarters	Round Rock,Texas , US
Area served	Worldwide
Key people	Michael Dell(chairman&CEO) Jeff Clarke (vice chair&COO)
Products	Personal computers Servers Peripheral
Revenue	US$88.4 billion(2024)
Operating income	US$5.21 billion (2024)
Net income	US$3.21 billion (2024)
Total assets	US$82.1 billion (2024)
Total equity	US$–2.3 billion (2024)
Number of employees	c. 120,000
Parent	Dell Technologies(2016–present)
Website	dell.com

Dell Inc.is an Americantechnology companythat develops, sells, repairs, and supportscomputersand related products and services. Dell is owned by its parent company,Dell Technologies.

Dell sellspersonal computers(PCs),servers,data storage devices,network switches,software,computerperipherals,HDTVs,cameras, printers, and electronics built by other manufacturers. The company is known for how it manages itssupply chainandelectronic commerce.This includes Dell selling directly to customers and delivering PCs that the customer wants.Dell was a pure hardware vendor until 2009 when it acquiredPerot 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, Inc., a publiclytraded company,as well as a component of theNASDAQ-100andS&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 toFortunemagazine. It is the second-largest non-oil company in Texas.As of 2024,it is theworld's third-largest personal computer vendorby unit sales, afterLenovoandHP.

In 2015, Dell acquired the enterprise technology firmEMC Corporation.Dell and EMC became divisions of Dell Technologies. Dell EMC sells data storage, information security,virtualization,analytics, andcloud computing.

History

Michael Dell(founder)

Dell's first logo from 1987 to 1992

Dell's former logo, used from 1992 to 2018

Dell's logo used before the acquisition of EMC, used from 2010 to 2018

Founding and start-up

Michael Dellfounded Dell Computer Corporation, doing business asPC's Limitedin 1984 while a student at theUniversity of Texas at Austin,operating from Michael Dell's off-campus dormitory room atDobie Center.The start-up aimed to sellIBM PC compatiblecomputers built from stock components. Michael Dell started trading in the belief that, by selling personal computer systems directly to customers, PC's Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs.Dell dropped out of college upon completion of his freshman year at the University of Texas in order to focus full-time on his fledgling business, after getting about $1,000 in expansion-capital from his family.As of April 2021, Dell's net worth was estimated to be over $50 billion (equivalent to $55,470,000,000 in 2023).

PC's Limited Turbo PC, circa 1985

In 1985, the company produced the first computer of its own design, the "Turbo PC", selling for US$795 (equivalent to $1,913 in 2023)and containing anIntel 8088-compatible processor capable of running at a maximum speed of 8 MHz.PC's Limited advertised the systems in national computer magazines for sale directly to consumers, and custom assembled each ordered unit according to a selection of options. This offered buyers prices lower than those of retail brands, but with greater convenience than assembling the components themselves. Pc's Limited was not the first company to use this business model, but they became one of the first to succeed with it. The company grossed more than $73 million in its first year of trading.

The company dropped thePC's Limitedname 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 (equivalent to $177,850,000 in 2023) from its June 22 initial public offering of 3.5 million shares at $8.50 a share.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.

Growth in the 1990s and early 2000s

Dell Latitude CPx laptop

In 1990, Dell Computer tried selling its products indirectly through warehouse clubs and computer superstores, but met with little success, and the company re-focused on its more successful direct-to-consumer sales model. In 1992,Fortuneincluded Dell Computer Corporation in its list of the world's500largest companies, making Michael Dell the youngest CEO of a Fortune 500 company at that time.

In 1993, to complement its own direct sales channel, Dell planned to sell PCs at big-box retail outlets such asWal-Mart,which would have brought in an additional $125 million (equivalent to $238,100,000 in 2023) in annual revenue.BainconsultantKevin Rollinspersuaded 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.

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.

From 1997 to 2004, Dell steadily grew and it gained market share from competitors even during industry slumps. During the same period, rival PC vendors such asCompaq,Gateway,IBM,Packard Bell,andAST Researchstruggled and eventually left the market or were bought out.Dell surpassed Compaq to become the largest PC manufacturer in 1999. Operating costs made up only 10 percent of Dell's $35 billion in revenue in 2002 (equivalent to $56,680,000,000 in 2023), 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, andprinters.Chairman and CEO Michael Dell had repeatedly blocked President and COOKevin Rollins's attempt to lessen the company's heavy dependency on PCs, which Rollins wanted to fix by acquiringEMC 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 nearWinston-Salem,North Carolina;the city and county provided Dell with $37.2 million in incentive packages; the state provided approximately $250 million (equivalent to $386,600,000 in 2023) in incentives and tax breaks. In July, Michael Dell stepped aside aschief executive officerwhile retaining his position aschairman 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 manufacturerAlienwarein 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.

Key events

Dell Axim X51v, shown with the Japanese Wikipedia main page open

In 2005, while earnings and sales continued to rise, sales growth slowed considerably, and the company stock lost 25% of its value that year.By June 2006, the stock traded around US$25 which was 40% down from July 2005—the high-water mark of the company in the post-dotcom era.By June 2021, the stock had reached an all-time high of over US$100 per share, reflecting the company's successful transition to a technology solutions provider that helps customers navigate digital transformation.

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 andAcermade 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.CNEThas 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 perceivedY2Kproblems, and corporate clients were not expected to upgrade again until extensive testing of Microsoft'sWindows 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 andAcer,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.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 toIBM,Hewlett-Packard,andApple 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 outDellConnectto 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 fromfaulty capacitors.A battery recall in August 2006, as a result of a Dell laptop catching fire, caused much negative attention for the company though later,Sonywas 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 CEOMark Hurd.

SEC investigation

In August 2005, Dell became the subject of an informal investigation by the United StatesSEC.In 2006, the company disclosed that the US Attorney for the Southern District of New York had subpoenaed documents related to the company's financial reporting dating back to 2002.The company delayed filing financial reports for the third and fourth fiscal quarter of 2006, and several class-action lawsuits were filed.Dell Inc's failure to file its quarterly earnings report could have subjected the company to de-listing from theNasdaq,but the exchange granted Dell a waiver, allowing the stock to trade normally.In August 2007, the Company announced that it would restate its earnings for fiscal years 2003 through 2006 and the first quarter of 2007 after an internal audit found that certain employees had changed corporate account balances to meet quarterly financial targets.In July 2010, the SEC announced charges against several senior Dell executives, including Dell Chairman and CEO Michael Dell, former CEO Kevin Rollins, and former CFO James Schneider, "with failing to disclose material information to investors and using fraudulent accounting to make it falsely appear that the company was consistently meeting Wall Street earnings targets and reducing its operating expenses." Dell, inc. was fined $100 million, with Michael Dell personally fined $4 million.

Michael Dell resumes CEO role

After four out of five quarterly earnings reports were below expectations, Rollins resigned as president and CEO on January 31, 2007, and founder Michael Dell assumed the role of CEO again.

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.

Dell 2.0 and downsizing

Dell announced a change campaign called "Dell 2.0," reducing the number of employees and diversifying the company's products.While chairman of the board after relinquishing his CEO position, Michael Dell still had significant input in the company during Rollins' years as CEO. With the return of Michael Dell as CEO, the company saw changes in operations, the exodus of many senior vice-presidents and new personnel brought in from outside the company.Michael Dell announced a number of initiatives and plans (part of the "Dell 2.0" initiative) to improve the company's financial performance. These include elimination of 2006 bonuses for employees with some discretionary awards, reduction in the number of managers reporting directly to Michael Dell from 20 to 12, and reduction of "bureaucracy".Jim Schneider retired as CFO and was replaced byDonald Carty,as the company came under an SEC probe for its accounting practices.

On April 23, 2008, Dell announced the closure of one of its biggest Canadian call-centers inKanata, 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 ofOttawawon 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 highCanadian dollarthat 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 itsEdmonton,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 inAustin, Texas(original location)andLebanon, Tennessee(opened in 1999) in 2008 and early 2009, respectively. The desktop production plant inWinston-Salem, North Carolina,receivedUS$280 million in incentives from the state and opened in 2005 (equivalent to $419,900,000 in 2023), 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.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 inŁodźin Poland.

Attempts at diversification

Dell Streak smartphone

The release of Apple'siPadtablet computerhad a negative impact on Dell and other major PC vendors, as consumers switched away from desktop and laptop PCs. Dell's own mobility division has not managed success with developing smartphones or tablets, whether running Windows orGoogle Android.TheDell Streakwas a failure commercially and critically due to its outdated OS, numerous bugs, and low resolution screen.InfoWorldsuggested that Dell and other OEMs saw tablets as a short-term, low-investment opportunity runningGoogle Android,an approach that neglected user interface and failed to gain long term market traction with consumers.Dell has responded by pushing higher-end PCs, such as the XPS line of notebooks, which do not compete with theApple iPadandKindle Firetablets.The growing popularity of smartphones and tablet computers instead of PCs drove Dell's consumer segment to an operating loss in Q3 2012. In December 2012, Dell suffered its first decline in holiday sales in five years, despite the introduction ofWindows 8.

In the shrinking PC industry, Dell continued to lose market share, as it dropped belowLenovoin 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'sThinkPadseries 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.

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.

2013 buyout

After several weeks of rumors, which started around January 11, 2013, Dell announced on February 5, 2013, that it had struck a $24.4 billion (equivalent to $31,470,000,000 in 2023)leveraged buyoutdeal, that would have delisted its shares from the NASDAQ and Hong Kong Stock Exchange and taken it private.Reutersreported that Michael Dell andSilver Lake Partners,aided by a $2 billion loan fromMicrosoft,would acquire the public shares at $13.65 apiece.The $24.4 billion buyout was projected to be the largest leveraged buyout backed by private equity since the2007–2008 financial crisis(equivalent to $34,550,000,000 in 2023).It is also the largest technology buyout ever, surpassing the 2006 buyout ofFreescale Semiconductorfor $17.5 billion (equivalent to $25,450,000,000 in 2023).

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, theBlackstone GroupandCarl Icahnexpressed 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.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.The $13.88 cash offer (plus a $.08 per share dividend for the third fiscal quarter) was accepted on September 12and 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.

Recent history

On November 19, 2015, Dell, alongsideArm Holdings,Cisco Systems,Intel,Microsoft,andPrinceton University,founded theOpenFog Consortium,to promote interests and development infog computing.

Acquisition of EMC

On October 12, 2015,Dell Inc.announced its intent to acquireEMC Corporationin a cash-and-stock deal valued at $67 billion (equivalent to $84,210,000,000 in 2023), which has been considered the largest-ever acquisition in the technology sector.As part of the acquisition, Dell would take over EMC's 81% stake in the cloud-computing and virtualization companyVMware.This would combine Dell's enterprise server, personal computer, and mobile businesses with EMC's enterprise storage business in a significant Vertical merger of IT giants. Dell would pay $24.05 per share of EMC, and $9.05 per share oftracking stockinVMware.

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 byElliott 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 arguedthis 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 Journalestimated that in 2014 Dell had revenue of $27.3 billion (equivalent to $34,610,000,000 in 2023) from personal computers and $8.9 billion from servers, while EMC had $16.5 billion from EMC II, $1 billion fromRSA Security,$6 billion fromVMware,and $230 million fromPivotal Software.EMC owns around 80 percent of the stock of VMware.The proposed acquisition will maintain VMware as a separate company, held via a newtracking stock,while the other parts of EMC will be rolled into Dell.Once the acquisition closes Dell will again publish quarterly financial results, having ceased these on going private in 2013.

The combined business was expected to address the markets forscale-out architecture,converged infrastructureandprivate cloud computing,playing to the strengths of both EMC and Dell.Commentators have questioned the deal, withFBR Capital Marketssaying that though it makes a "ton of sense" for Dell, it's a "nightmare scenario that would lack strategic synergies" for EMC.Fortunesaid 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 Registerreported the view ofWilliam Blair & Companythat 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'sTemasek HoldingsandSilver Lake Partners.

On September 7, 2016, Dell completed the merger with EMC, which involved the issuance of $45.9 billion (equivalent to $57,140,000,000 in 2023) in debt and $4.4 billion (equivalent to $5,478,000,000 in 2023) of common stock.At the time, some analysts claimed that Dell's acquisition of the former Iomega could harm theLenovoEMCpartnership.

In July 2018, Dell announced intentions to become a publicly traded company again by paying $21.7 billion (equivalent to $25,940,000,000 in 2023) 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 otheractivist 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; Dell's consumer and workstation businesses are internally referred to as the Dell Client Solutions Group, and is one of the company's three main business divisions alongsideDell EMCandVMware.

In January 2021 (equivalent to $14,420,000,000 in 2023), Dell reported $94 billion (equivalent to $104,280,000,000 in 2023) 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.

Dell and AMD

When Dell acquiredAlienwareearly in 2006, some Alienware systems hadAMDchips. On August 17, 2006, a Dell press releasestated that starting in September, Dell Dimension desktop computers would have AMD processors and that later in the year Dell would release a two-socket, quad-processor server using AMDOpteronchips, moving away from Dell's tradition of only offeringIntelprocessors in Dell PCs.

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 thePowerEdgeSC1435.

On November 1, 2006, Dell's website began offering notebooks based on AMD processors (the Inspiron 1501 with a 15.4-inch (390 mm) 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.

Dell and desktop Linux

In 1998,Ralph Naderasked Dell (and five other majorOEMs) to offer alternate operating systems toMicrosoft Windows,specifically includingLinux,for which "there is clearly a growing interest".Possibly coincidentally, Dell started offering Linux notebook systems that "cost no more than their Windows 98 counterparts" in 2000,and soon expanded, with Dell becoming "the first major manufacturer to offer Linux across its full product line".However, by early 2001 Dell had "disbanded its Linux business unit."

On February 26, 2007, Dell announced that it had commenced a program to sell and distribute a range of computers with pre-installedLinuxdistributions as an alternative toMicrosoft Windows.Dell indicated thatNovell'sSUSELinux 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.On April 18, a report appeared suggesting that Michael Dell usedUbuntuon 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 newDell Inspirondesktops and laptops). After theIdeaStormsite supported extending the bundles beyond the US market, Dell later announced more international marketing.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". AtLinuxWorld2007 Dell announced plans to provideNovell'sSUSE Linux Enterprise Desktopon selected models in China, "factory-installed".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 withUbuntu7.10, for 849 euro or GBP 599 upwards.On February 18, 2008, Dell announced that theInspiron 1525would have Ubuntu as an optional operating system.On February 22, 2008, Dell announced plans to sell Ubuntu in Canada and inLatin AmericaFrom September 16, 2008, Dell has shipped bothDell Ubuntu Netbook RemixandWindows XPHome versions of theInspiron Mini 9and theInspiron Mini 12.As of November 2009Dell 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.

Corporate affairs

Business trends

The key trends for Dell are (as of the financial year ending late January/early February):

	Revenue (US$ bn)	Net profit (US$ bn)	Employees (k)
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

1. Michael Dell(1984– )

List of chief executives

1. Michael Dell (1984–2004)
2. Kevin Rollins(2004–2007)
3. Michael Dell (2007–present); second term

List of Dell marketing slogans

• Be direct(1998-2001)
• Easy as Dell(2001-2004)
• Get more out of now(2004–2005)
• It's a Dell(2005-2006)
• Dell. Purely You(2006–2007)
• Yours is Here(2007–2011)
• The power to do more(2011–present)

Acquisitions

Further information:List of Dell ownership activities

List of companies acquired by Dell Inc.

Company acquired	Date of acquisition	Company notes	References
Alienware	2006	Manufacturer of high-end PCs for gamers
EqualLogic	January 28, 2008	Acquired to gain a foothold in theiSCSIstorage market. Because Dell already had an efficient manufacturing process, integrating EqualLogic's products into the company drove manufacturing prices down
Perot Systems	2009	Perot Systems was a technology services and outsourcing company, mainly active in the health sector, founded by former presidential hopefulH. Ross Perot.The acquired business provided Dell with applications development, systems integration, and strategic consulting services through its operations in the US and 10 other countries. In addition, the acquisition of Perot brought a variety of business process outsourcing services, including claims processing and call center operations.
KACE Networks	February 10, 2010	KACE Networks was a leader in systems management appliances.
Boomi	November 2, 2010	Cloud integration leader
Compellent Technologies	February 2011	The acquisition extended Dell's storage solutionportfolio.
Force10networks	August 2011	By acquiring this company Dell now has the fullIntellectual propertyfor their networking portfolio, which was lacking on the Dell PowerConnect range as these products are powered byBroadcomorMarvellIM.
AppAssureSoftware	February 24, 2012	Dell acquired the backup and disaster recovery software solution provider out of Reston, VA. AppAssure delivered 194 percent revenue growth in 2011 and over 3500% growth in the prior three years. AppAssure supported physical servers and VMware, Hyper-V and XenServer. The deal represents the first acquisition since Dell formed its software division under former CA CEO John Swainson. Dell added that it will keep AppAssure's 230 employees and invest in the company.
SonicWall	May 9, 2012	A company with 130 patents, SonicWall develops security products, and is a network and data security provider.
Wyse	April 2, 2012	A global market-leader forthin clientsystems.
Clerity Solutions	April 3, 2012	Clerity, a company offering services for application (re)hosting, was formed in 1994 and has it headquarters in Chicago. At the time of the take-over approximately 70 people were working for the company.
Quest Software	September 28, 2012
Gale Technologies	November 16, 2012	A provider of infrastructure automation products. Gale Technologies was founded in 2008 and is headquartered in Santa Clara, California.
Credant Technologies	December 18, 2012	A provider of storage protection solutions. Credant is the 19th acquisition in four years, as Dell had spent $13 billion on acquisitions since 2008 and $5 billion in the past year alone.
StatSoft	March 24, 2014	A global provider of analytics software, in order to bolster itsbig datasolutions offering.
EMC²	October 12, 2015	Storage, virtualization, services, cloud, data center, security and compliance

Dell facilities

Dell's headquarters is located inRound Rock, Texas.As of 2013the company employed about 14,000 people in central Texas and was the region's largest private employer,which has 2,100,000 square feet (200,000 m²) of space.As of 1999 almost half of the general fund of the city of Round Rock originated from sales taxes generated from the Dell headquarters.

Dell previously had its headquarters in theArboretumcomplex in northern Austin, Texas.In 1989 Dell occupied 127,000 square feet (11,800 m²) in the Arboretum complex.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.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's lease in the Arboretum had been scheduled to expire in 1994.

The company sponsorsDell Diamond,the home stadium of theRound Rock Express,the AAAminor league baseballaffiliate of theTexas Rangersmajor league baseball team.

By 1996, Dell was moving its headquarters to Round Rock.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.In 1998 Dell announced that it was going to add two buildings to its Round Rock complex, adding 1,600,000 square feet (150,000 m²) of office space to the complex.

In 2000, Dell announced that it would lease 80,000 square feet (7,400 m²) of space in theLas Cimasoffice complex inunincorporatedTravis County, Texas,between Austin andWest 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.In January 2001, the company leased the space in Las Cimas 2, located alongLoop 360.Las Cimas 2 housed Dell's executives, the investment operations, and some corporate functions. Dell also had an option for 138,000 square feet (12,800 m²) of space in Las Cimas 3.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.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 312,000 square feet (29,000 m²), for about a seven-year period after 2003. By that year roughly 100,000 square feet (9,300 m²) of that space was absorbed by new subtenants.

In 2008, Dell switched the power sources of the Round Rock headquarters to more environmentally friendly ones, with 60% of the total power coming fromTXU Energywind farms and 40% coming from the Austin Community Landfill gas-to-energy plant operated byWaste 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(Dell Compellent);Bowling Green, Kentucky;Lincoln, Nebraska;and Miami, Florida. Facilities located abroad includePenang, Malaysia;Xiamen,China;Bracknell,UK;Manila, PhilippinesChennai, India;Hyderabad, India;Noida, India;HortolândiaandPorto Alegre,Brazil;Bratislava,Slovakia;Łódź, Poland;Panama City,Panama;DublinandLimerick,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.

Manufacturing

From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing—delivering individual PCs configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis.

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 ajust-in-time(JIT) manufacturing approach, which minimizesinventorycosts. Low inventory is another signature of the Dell business model—a critical consideration in an industry where components depreciate very rapidly.

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.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 Journalreported in September 2008 that "Dell has approached contract computer manufacturers with offers to sell" their plants.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) andLebanon, Tennessee,(opened in 1999), which were closed in 2008 and early 2009, respectively. The plant inWinston-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. TheMiami, 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 theEMEAmarket at theLimerickfacility 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 ofŁódźby January 2010.European Unionofficials said they would investigate a €52.7million aid package the Polish government used to attract Dell away from Ireland.European Manufacturing Facility 1 (EMF1, opened in 1990) and EMF3 form part of theRaheen Industrial Estatenear Limerick. EMF2 (previously aWangfacility, later occupied byFlextronics,situated in Castletroy) closed in 2002,and Dell Inc. has consolidated production into EMF3 (EMF1 nowcontains only offices).Subsidies from the Polish government did keep Dell for a long time.After ending assembly in the Limerick plant theCherrywoodTechnology 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 exceptDell's Alienware subsidiary, which manufactures PCs in an Athlone, Ireland, plant. Whether this facility will remain in Ireland is not certain.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 theEldorado do Sulplant opened in 1999, to a new plant inHortolândia, Brazil,in 2007.

Products

Scope and brands

Dell's tagline "Yours is Here", as seen at theirMall of Asiabranch inPasay,Philippines

The corporation markets specific brand names to differentmarket segments.

Its Business/Corporate class includes:

• OptiPlex(officedesktop computersystems)
• Dimension(home desktop computer systems)
• Vostro(office/small business desktop andnotebooksystems)
• n Series(desktop and notebook computers shipped withLinuxorFreeDOSinstalled)
• Latitude(business-focused notebooks)
• Precision(workstationsystems and high-performance "Mobile Workstation" notebooks),
• PowerEdge(businessservers)
• PowerVault(direct-attach andnetwork-attached storage)
• Force10(network switches)
• PowerConnect(network switches)
• Dell Compellent(storage area networks)
• EqualLogic(enterprise classiSCSISANs)
• Dell EMR(electronic medical records)

Dell's Home Office/Consumer class includes:

• Inspiron(budget desktop and notebook computers)
• XPS(high-end desktop and notebook computers)
• G Series(high/medium-performance gaming laptops)
• Alienware(high-performance gaming systems)
• Venue(Tablets Android / Windows)

Dell's Peripherals class includesUSB keydrives,LCD televisions,andprinters;Dell monitors includesLCD TVs,plasma TVsandprojectorsforHDTVandmonitors.Dell UltraSharp is further a high-end brand of monitors.

Dell service and support brands include theDell 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 byElon Musk's cousin,Lyndon Rive,which Dell bought in 2007), andYour 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 includeAxim(PDA;discontinued April 9, 2007),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 (anSVR4-based Unix operating system for its Dell-branded PCs and workstations; discontinued in 1993) and Dell Mobile Connect ( Windows Mobile application; discontinued July 31st, 2022).

Security

Self-signed root certificate

In November 2015, it emerged that several Dell computers had shipped with an identical pre-installedroot certificateknown as "eDellRoot".This raised such security risks as attackers impersonatingHTTPS-protected websites such asGoogleandBank of Americaand malware being signed with the certificate to bypass Microsoft software filtering.Dell apologized and offered a removal tool.

Dell Foundation Services

Also in November 2015, a researcher discovered that customers with diagnostic program Dell Foundation Services could be digitally tracked using the unique service tag number assigned to them by the program.This was possible even if a customer enabledprivate browsingand deleted theirbrowser cookies.Ars Technicarecommended that Dell customers uninstall the program until the issue was addressed.

Commercial aspects

Organization

The board consists of nine directors. Michael Dell, the founder of the company, serves as chairman of the board and chief executive officer. Other board members includeDon Carty,Judy Lewent,Klaus Luft,Alex Mandl,andSam Nunn.Shareholderselect the nine board members at meetings, and those board members who do not get a majority of votes must submit a resignation to the board, which will subsequently choose whether or not to accept the resignation. The board of directors usually sets up five committees having oversight over specific matters. These committees include the Audit Committee, which handles accounting issues, including auditing and reporting; the Compensation Committee, which approves compensation for the CEO and other employees of the company; the Finance Committee, which handles financial matters such as proposed mergers and acquisitions; the Governance and Nominating Committee, which handles various corporate matters (including the nomination of the board); and the Antitrust Compliance Committee, which attempts to prevent company practices from violatingantitrustlaws.

Day-to-day operations of the company are run by the Global Executive Management Committee, which setsstrategic direction.Dell has regional senior vice-presidents for countries other than the United States.

Marketing

Dell advertisements have appeared in several types of media including television, the Internet, magazines,catalogs,and newspapers. Some of Dell Inc's marketing strategies include lowering prices at all times of the year, free bonus products (such as Dell printers), and free shipping to encourage more sales and stave off competitors. In 2006, Dell cut its prices in an effort to maintain its 19.2% market share. This also cut profit margins by more than half, from 8.7 to 4.3 percent. To maintain its low prices, Dell continues to accept most purchases of its products via the Internet and through the telephone network, and to move its customer-care division to India andEl Salvador.

A popular United States television and print ad campaign in the early 2000s featured the actorBen Curtisplaying 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 featuredinternsat 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 fromBBDOtoWorking MotherMedia. In July 2007, Dell released new advertising created by Working Mother to support the Inspiron and XPS lines. The ads featured music from theFlaming LipsandDevowho 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 partner program

In late 2007, Dell Inc. announced that it planned to expand its program tovalue-added resellers(VARs), giving it the official name of "Dell Partner Direct" and a new Website.

Dell India has started Online Ecommerce websitewith its Dell Partner www.compuindia.com GNG Electronics Pvt Ltdtermed 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.

Global analytics

Dell also operates a captive analytics division which supports pricing, web analytics, and supply chain operations. DGA operates as a single, centralized entity with a global view of Dell's business activities. The firm supports over 500 internal customers worldwide and has created a quantified impact of over $500 million.

Criticisms of marketing of laptop security

In 2008, Dell received press coverage over its claim of having the world's most secure laptops, specifically, its Latitude D630 and Latitude D830.At Lenovo's request, the (US) National Advertising Division (NAD) evaluated the claim, and reported that Dell did not have enough evidence to support it.

Retail

Dell first opened their retail stores in India.

United States

In the early 1990s, Dell sold its products throughBest Buy,CostcoandSam's Clubstores in the United States. Dell stopped this practice in 1994, citing low profit margins on the business, exclusively distributing through a direct-sales model for the next decade. In 2003, Dell briefly sold products inSearsstores in the US. In 2007, Dell started shipping its products to major retailers in the US once again, starting withSam's ClubandWal-Mart.Staples,the largest office-supply retailer in the US, andBest Buy,the largest electronics retailer in the US, became Dell retail partners later that same year.

Kiosks

Starting in 2002, Dell openedkiosklocations in the United States to allow customers to examine products before buying them directly from the company. Starting in 2005, Dell expandedkiosklocations to include shopping malls across Australia, Canada, Singapore and Hong Kong. On January 30, 2008, Dell announced it would shut down all 140 kiosks in the US due to expansion into retail stores.By June 3, 2010, Dell had also shut down all of its mall kiosks in Australia.

Retail stores

As of the end of February 2008,Dell products shipped to one of the largest office supply retailers in Canada,Staples Business Depot.In April 2008,Future ShopandBest Buybegan carrying a subset of Dell products, such as certain desktops, laptops, printers, and monitors.

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 inBudapest.In October of the same year, Dell opened a retail store in Moscow.

In the UK,HMV's flagshipTrocaderostore has sold Dell XPS PCs since December 2007. From January 2008 the UK stores ofDSGihave sold Dell products (in particular, throughCurrysandPC Worldstores). As of 2008, the large supermarket chainTescohas sold Dell laptops and desktops in outlets throughout the UK.

In May 2008, Dell reached an agreement with the office supply chain,Officeworks(part ofColes 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, includingStudioandXPSsystems in late 2008. Dell andDick Smith Electronics(owned byWoolworths 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 ofInspironandStudionotebooks, with minimal Studio desktops from the Dell range. As of 2009,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 viaMedia Marktand Saturn, as well as some shopping websites.

Competition

Dell's major competitors includeLenovo,Hewlett-Packard (HP),Hasee,Acer,Fujitsu,Toshiba,Gateway,Sony,Asus,MSI,Panasonic,Samsungand Apple. Dell and its subsidiary, Alienware, compete in the enthusiast market against AVADirect,Falcon Northwest,VoodooPC(a subsidiary of HP), and other manufacturers. In the second quarter of 2006, Dell had between 18% and 19% share of the worldwide personal computer market, compared to HP with roughly 15%.

In late 2006,Dell lost its lead in the PC business to Hewlett-Packard. BothGartnerandIDCestimated that in the third quarter of 2006, HP shipped more unitsworldwide 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 estimatedthat 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 competitorsEMCand IBM. As of 2021, Dell is the third-largest PC manufacturer after Lenovo and HP.

Partnership with EMC

In 2001, Dell and EMC entered into a partnership whereby both companies jointly design products, and Dell provided support for certain EMC products including midrange storage systems, such asfibre channelandiSCSIstorage area networks.The relationship also promotes and sells OEM versions of backup, recovery, replication and archiving software.On December 9, 2008, Dell and EMC announced the multi-year extension, through 2013, of the strategic partnership with EMC. In addition, Dell expanded its product lineup by adding the EMC Celerra NX4 storage system to the portfolio of Dell/EMC family of networked storage systems and partnered on a new line ofdata deduplicationproducts as part of its TierDisk family ofdata storage devices.

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.

Environmental record

Dell committed to reducing greenhouse gas emissions from its global activities by 40% by 2015, with the 2008 fiscal year as the baseline year.It is listed inGreenpeace's Guide to Greener Electronics that scores leading electronics manufacturers according to their policies on sustainability,climate and energyand how green their products are. In November 2011, Dell ranked 2nd out of 15 listed electronics makers (increasing its score to 5.1 from 4.9, which it gained in the previous ranking from October 2010).

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 toconflict minerals,theEnough Projectrated Dell the eighth-highest of 24 consumer electronics companies.

Green initiatives

Dell became the first company in theinformation technology industryto establish a product-recyclinggoal (in 2004) and completed the implementation of its global consumer recycling-program in 2006. On February 6, 2007, the National Recycling Coalition awarded Dell its "Recycling Works" award for efforts to promote producer responsibility. On July 19, 2007, Dell announced that it had exceeded targets in working to achieve a multi-year goal of recovering 275 million pounds of computer equipment by 2009. The company reported the recovery of 78 million pounds (nearly 40,000 tons) of IT equipment from customers in 2006, a 93-percent increase over 2005; and 12.4% of the equipment Dell sold seven years earlier.

On June 5, 2007, Dell set a goal of becoming the greenest technology company on Earth for the long term.The company launched azero-carboninitiative that includes:

1. reducing Dell'scarbon intensityby 15 percent by 2012
2. requiring primary suppliers to report carbon emissions data during quarterly business reviews
3. partnering with customers to build the "greenest PC on the planet"
4. expanding the company's carbon-offsetting program, "Plant a Tree for Me"

Dell reports its environmental performance in an annualCorporate Social Responsibility(CSR) Report that follows theGlobal Reporting Initiative(GRI) protocol. Dell's 2008 CSR report ranked as "Application Level B" as "checked by GRI".

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.

Criticism

See also:Lawsuits involving Dell Inc.

In the 1990s, Dell switched from using primarilyATXmotherboardsandPSUto using boards and power supplies with mechanically identical but differently wired connectors. This meant customers wishing to upgrade their hardware would have to replace parts with scarce Dell-compatible parts instead of commonly available parts. While motherboard power connections reverted to the industry standard in 2003, Dell remains secretive about their motherboard pin-outs for peripherals (such as MMC readers and power on/off switches and LEDs).

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 of more than 45% of calls and long wait times. Dell'sblogdetailed the response: "We're spending more than a $100 million—and a lot of blood, sweat, and tears of talented people—to fix this."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.

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.The investigation, begun in November 2006, resulted from concerns raised by theU.S. Securities and Exchange Commissionover some documents and information that Dell Inc. had submitted.It was alleged that Dell had not disclosed large exclusivity payments received fromIntelfor agreeing not to buy processors from rival manufacturerAMD.In 2010 Dell finally paid $100 million (equivalent to $136,400,000 in 2023) 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.The court said the event could hardly be regarded as mistakes, as the prestigious firm said the company mispriced its products twice in Taiwanese website within 3 weeks.

After Michael Dell made a $24.4 billion buyout bid in August 2013 (equivalent to $31,470,000,000 in 2023), activist shareholderCarl Icahnsued the company and its board in an attempt to derail the bid and promote his own forthcoming offer.

In 2020, theAustralian Strategic Policy Instituteaccused at least 82 major brands, including Dell, of being connected to forcedUyghurlabor inXinjiang.

See also

• Dell laptops
• List of computer system manufacturers
• List of Dell ownership activities
• Configurator
• Mass customization

Further reading

• Dell Company Information
• Michael Dell,Catherine Fredman,Direct From Dell,ISBN0-88730-914-3
• Serwer, Andy (November 28, 2005). "Dell's Midlife Crisis".Fortune.pp. 63–66.
• Dell as the seventh-most-admired computer company in the USA,eighth overall,and seventh worldwide.Fortune,Most Admired Companies 2006.
• BBC News,August 21, 2003,Dell makes grab for market share
• USA Today,January 20, 2001,Dell business model turns to muscle as rivals struggle
• Ubuntu Forums,June 7, 2007,Dell's with Ubuntu called Dellbuntu

External links

• Official website