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Dell sells personal computers (PCs), servers, data storage devices, network switches, software, computer peripherals, HDTVs, cameras, printers, and electronics built by other manufacturers. The company is known for how it manages its supply chain and electronic commerce. This includes Dell selling directly to customers and delivering PCs that the customer wants.Perot Systems. Dell then entered the market for IT services. The company has expanded storage and networking systems. It is now expanding from offering computers only to delivering a range of technology for enterprise customers.
Dell is a publicly-traded company (Nasdaq: DELL), as well as a component of the NASDAQ-100 and S&P 500. It is the 3rd largest personal computer vendor as of January 2021.Fortune magazine. It is the second-largest non-oil company in Texas.
In 2015, Dell acquired the enterprise technology firm EMC Corporation. Dell and EMC became divisions of Dell Technologies. Dell EMC sells data storage, information security, virtualization, analytics, and cloud computing.
Michael Dell founded Dell Computer Corporation, doing business as PC"s Limited, in 1984 while a student at the University of Texas at Austin.Dobie Center,start-up aimed to sell IBM PC-compatible computers 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.
In 1985, the company produced the first computer of its own design — the "Turbo PC", sold for US$795Intel 8088-compatible processor capable of running at a maximum speed of 6.66 MHz.
The company dropped the PC"s Limited name in 1987 to become Dell Computer Corporation and began expanding globally. At the time, the reasoning was this new company name better reflected its presence in the business market, as well as resolved issues with the use of "Limited" in a company name in certain countries.Britain; eleven 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.
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, 500 largest 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 as Wal-Mart, which would have brought in an additional $125 million in annual revenue. Bain consultant Kevin Rollins persuaded Michael Dell to pull out of these deals, believing they would be money losers in the long run.
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.
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 as Compaq, Gateway, IBM, Packard Bell, and AST Research struggled and eventually left the market or were bought out.
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,Acer made their PC manufacturing operations more efficient to match Dell, weakening Dell"s traditional price differentiation.[3]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 sixty-four 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.
Dell had long stuck by its direct sales model. Consumers had become the main drivers of PC sales in recent years,Acer, had a long retail presence and so were well poised to take advantage of the consumer shift.
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.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.
Dell"s reputation for poor customer service, since 2002, 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 but by the 2000s, the company could not justify that level of service when computers in the same line-up sold for hundreds.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 faulty capacitors.Sony was found responsible for the manufacturing of the batteries, however spokesman for Sony Yoshikazu Ochiai said the problem concerned the combination of the battery with a charger, which is specific to Dell in this case.
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 rival Hewlett Packard whose Personal Systems Group was invigorated thanks to a restructuring initiated by their CEO Mark Hurd.
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 announced a change campaign called "Dell 2.0," reducing the number of employees and diversifying the company"s products.bureaucracy". Jim Schneider retired as CFO and was replaced by Donald 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 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.
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.Austin, Texas (original location)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.Łodź in Poland.
The release of Apple"s iPad tablet computer had 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 or Google Android.Dell Streak was a failure commercially and critically due to its outdated OS, numerous bugs, and low resolution screen. InfoWorld suggested that Dell and other OEMs saw tablets as a short-term, low-investment opportunity running Google Android, an approach that neglected user interface and failed to gain long term market traction with consumers.Apple iPad and Kindle Fire tablets.Windows 8.
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.
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 leveraged buyout deal, that would have delisted its shares from the NASDAQ and Hong Kong Stock Exchange and taken it private.Reuters reported that Michael Dell and Silver Lake Partners, aided by a $2 billion loan from Microsoft, would acquire the public shares at $13.65 apiece.2007 financial crisis.Freescale Semiconductor for $17.5 billion.
The founder of Dell, Michael Dell, said of the February offer "I believe this transaction will open an exciting new chapter for Dell, our customers and team members".
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.
On November 19, 2015, Dell, alongside ARM Holdings, Cisco Systems, Intel, Microsoft, and Princeton University, founded the OpenFog Consortium, to promote interests and development in fog computing.
On October 12, 2015, Dell Inc. announced its intent to acquire EMC Corporation in a cash-and-stock deal valued at $67 billion, which has been considered the largest-ever acquisition in the technology sector.VMWare.tracking stock in VMware.
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.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 arguedbillion from personal computers and $8.9bn from servers, while EMC had $16.5bn from EMC II, $1bn from RSA Security, $6bn from VMware, and $230million from Pivotal Software.tracking stock, while the other parts of EMC will be rolled into Dell.
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.FBR Capital Markets saying that though it makes a "ton of sense" for Dell, it"s 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."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.Temasek Holdings and Silver Lake Partners.
On September 7, 2016, Dell Inc. completed the merger with EMC Corp., which involved the issuance of $45.9 billion in debt and $4.4 billion common stock.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.Carl Icahn (9.3% owner of Dell) sued the company over plans to go public.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,
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 alongside Dell EMC and VMware.
When Dell acquired Alienware early in 2006, some Alienware systems had AMD chips. On August 17, 2006, a Dell press releaseOpteron chips, moving away from Dell"s tradition of only offering Intel processors in Dell PCs.
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 1998, Ralph Nader asked Dell (and five other major OEMs) to offer alternate operating systems to Microsoft Windows, specifically including Linux, for which "there is clearly a growing interest".
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 would appear first.Ubuntu on one of his home systems.
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 IdeaStorm site supported extending the bundles beyond the US market, Dell later announced more international marketing.LinuxWorld 2007 Dell announced plans to provide Novell"s SUSE Linux Enterprise Desktop on selected models in China, "factory-installed".Ubuntu 7.10, for 849 euro or GBP 599 upwards.Inspiron 1525 would have Ubuntu as an optional operating system.Latin AmericaDell Ubuntu Netbook Remix and Windows XP Home versions of the Inspiron Mini 9 and the Inspiron Mini 12. As of November 2009
Acquired to gain a foothold in the iSCSI storage market. Because Dell already had an efficient manufacturing process, integrating EqualLogic"s products into the company drove manufacturing prices down
Perot Systems was a technology services and outsourcing company, mainly active in the health sector, founded by former presidential hopeful H. 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.
By acquiring this company Dell now has the full Intellectual property for their networking portfolio, which was lacking on the Dell PowerConnect range as these products are powered by Broadcom or Marvell IM.
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.
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.
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.
The company sponsors Dell Diamond, the home stadium of the Round Rock Express, the AAA minor league baseball affiliate of the Texas Rangers major league baseball team.
In 2000, Dell announced that it would lease 80,000 square feet (7,400 m2) 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.Loop 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 3.2), 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 from TXU Energy wind farms and 40% coming from the Austin Community Landfill gas-to-energy plant operated by Waste Management, Inc.
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.
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 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.
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 Wall Street Journal reported in September 2008 that "Dell has approached contract computer manufacturers with offers to sell" their plants.
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.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.European Union officials said they would investigate a €52.7million aid package the Polish government used to attract Dell away from Ireland.Raheen Industrial Estate near Limerick. EMF2 (previously a Wang facility, later occupied by Flextronics, situated in Castletroy) closed in 2002,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 except
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 Hortolandia, Brazil, in 2007.
Dell service and support brands include the Dell Solution Station (extended domestic support services, previously "Dell on Call"), 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 2007Your 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 Axim (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 (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 31st, 2022).
In November 2015, it emerged that several Dell computers had shipped with an identical pre-installed root certificate known as "eDellRoot".HTTPS-protected websites such as Google and Bank of America and malware being signed with the certificate to bypass Microsoft software filtering.
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.private browsing and deleted their browser cookies.
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 include Don Carty, Judy Lewent, Klaus Luft, Alex Mandl, and Sam Nunn. Shareholders elect 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 violating antitrust laws.
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.
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 and El Salvador.
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 interns 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 late 2007, Dell Inc. announced that it planned to expand its program to value-added resellers (VARs), giving it the official name of "Dell Partner Direct" and a new Website.
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.
In the early 1990s, Dell sold its products through Best Buy, Costco and Sam"s Club stores 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 in Sears stores in the US. In 2007, Dell started shipping its products to major retailers in the US once again, starting with Sam"s Club and Wal-Mart. Staples, the largest office-supply retailer in the US, and Best Buy, the largest electronics retailer in the US, became Dell retail partners later that same year.
Starting in 2002, Dell opened kiosk locations in the United States to allow customers to examine products before buying them directly from the company. Starting in 2005, Dell expanded kiosk locations 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.
As of the end of February 2008Staples Business Depot. In April 2008, Future Shop and Best Buy began 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 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 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. As of 2009
Dell"s major competitors include Lenovo Hewlett-Packard (HP), Hasee, Acer, Fujitsu, Toshiba, Gateway, Sony, Asus, MSI, Panasonic, Samsung and 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%.
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.
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 as fibre channel and iSCSI storage area networks. The relationship also promotes and sells OEM versions of backup, recovery, replication and archiving software.data deduplication products as part of its TierDisk family of data storage devices.
Dell committed to reducing greenhouse gas emissions from its global activities by 40% by 2015, with the 2008 fiscal year as the baseline year.Greenpeace"s Guide to Greener Electronics that scores leading electronics manufacturers according to their policies on sustainability, climate and energy and 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.
Dell became the first company in the information technology industry to establish a product-recycling goal (in 2004) and completed the implementation of its global consumer recycling-program in 2006.
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".
In the 1990s, Dell switched from using primarily ATX motherboards and PSU to 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 2006, Dell acknowledged that it had problems with customer service. Issues included call transfersblog 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."
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.US Securities and Exchange Commission over some documents and information that Dell Inc. had submitted.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.
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 BYD, of being connected to forced Uyghur labor in Xinjiang.
"Form 10-K | Dell Technologies". investors.delltechnologies.com. 2020. Retrieved October 22, 2020. As of January 31, 2020, we had approximately 165,000 total full-time employees
Benner, Katie (June 13, 2011). "Michael Dell"s dilemma – Fortune Tech". Fortune. Archived from the original on May 9, 2012. Retrieved January 9, 2014.
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.[1]
Ben Ames. "Dell reveals SEC investigation, says Q2 profit down 51%". Computerworld.com. Archived from the original on January 16, 2009. Retrieved December 4, 2012.
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"SEC Charges Dell and Senior Executives with Disclosure and Accounting Fraud". US Securities and Exchange Commission. July 22, 2010. Retrieved November 22, 2021.
Seggewiss, Krista; Hill, Bert (April 24, 2008). "The Dell dream dies". Ottawa Citizen. Archived from the original on January 26, 2009. Retrieved May 27, 2009. The Ottawa centre is closing because Dell can"t justify paying $18 per hour with the Canadian and American currencies at parity. The relatively high pay, benefits and training opportunities separated Dell from other call centres ...
Kirk Ladendorf (October 8, 2009). "Dell closing its last large U.S. plant". Austin American-Statesman. Archived from the original on October 11, 2009. Retrieved November 19, 2009.
Arthur, Charles (November 16, 2012). "Dell revenues slump as tablets and smartphones eat into market | The Guardian". The Guardian. London. Retrieved April 27, 2013.
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"Dell, HP earnings expected to mark death of PC era | Financial Post". Financial Post. Business.financialpost.com. Bloomberg News. November 15, 2012. Retrieved April 27, 2013.
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Official Dell pressrelease on (leveraged) buyout by Michael Dell and Silverlake Archived February 10, 2013, at the Wayback Machine, February 5, 2013. Visited: February 5, 2013
Krazit, Tom (November 1, 2006). "Dell puts AMD-powered notebooks on sale". CNET News. CBS Interactive. Dell"s first notebooks with chips from Advanced Micro Devices appeared for sale on its Web site Wednesday, although the company made no formal announcement.
Laptop Reviews, Old Dell (February 24, 2018). "Alienware Unveils New Alienware 17 Gaming Notebook". Old Dell Laptop Reviews. Dell"s latest AlienWare beast takes off in the market with its amazing specs.
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Apple was founded as Apple Computer Company on April 1, 1976, by Steve Wozniak, Steve Jobs and Ronald Wayne to develop and sell Wozniak"s Apple I personal computer. It was incorporated by Jobs and Wozniak as Apple Computer, Inc. in 1977 and the company"s next computer, the Apple II, became a best seller and one of the first mass-produced microcomputers. Apple went public in 1980 to instant financial success. The company developed computers featuring innovative graphical user interfaces, including the 1984 original Macintosh, announced that year in a critically acclaimed advertisement. By 1985, the high cost of its products and power struggles between executives caused problems. Wozniak stepped back from Apple amicably and pursued other ventures, while Jobs resigned bitterly and founded NeXT, taking some Apple employees with him.
As the market for personal computers expanded and evolved throughout the 1990s, Apple lost considerable market share to the lower-priced duopoly of the Microsoft Windows operating system on Intel-powered PC clones (also known as "Wintel"). In 1997, weeks away from bankruptcy, the company bought NeXT to resolve Apple"s unsuccessful operating system strategy and entice Jobs back to the company. Over the next decade, Jobs guided Apple back to profitability through a number of tactics including introducing the iMac, iPod, iPhone and iPad to critical acclaim, launching "Think different" and other memorable advertising campaigns, opening the Apple Store retail chain, and acquiring numerous companies to broaden the company"s product portfolio. When Jobs resigned in 2011 for health reasons, and died two months later, he was succeeded as CEO by Tim Cook.
Apple became the first publicly traded U.S. company to be valued at over $1 trillion in August 2018, then $2 trillion in August 2020, and most recently $3 trillion in January 2022. The company receives criticism regarding the labor practices of its contractors, its environmental practices, and its business ethics, including anti-competitive practices and materials sourcing. Nevertheless, the company has a large following and enjoys a high level of brand loyalty. It is ranked as one of the world"s most valuable brands.
Apple"s first product, the Apple I, designed by Steve Wozniak, was sold as an assembled circuit board and lacked basic features such as a keyboard, monitor, and case. The owner of this unit added a keyboard and wooden case.
Apple Computer Company was founded on April 1, 1976, by Steve Jobs, Steve Wozniak, and Ronald Wayne as a partnership.Apple I, a computer designed and hand-built entirely by Wozniak.Volkswagen Bus, and Wozniak sold his HP-65 calculator.: 57Homebrew Computer Club in July 1976.motherboard with CPU, RAM, and basic textual-video chips—a base kit concept which would not yet be marketed as a complete personal computer.US$666.66 (equivalent to $3,175 in 2021).: 180 Wozniak later said he was unaware of the coincidental mark of the beast in the number 666, and that he came up with the price because he liked "repeating digits".
Apple Computer, Inc. was incorporated on January 3, 1977,Mike Markkula provided essential business expertise and funding of US$250,000 (equivalent to $1,117,930 in 2021) to Jobs and Wozniak during the incorporation of Apple.
The Apple II, also invented by Wozniak, was introduced on April 16, 1977, at the first West Coast Computer Faire.TRS-80 and Commodore PET, because of its character cell-based color graphics and open architecture. While the Apple I and early Apple II models used ordinary audio cassette tapes as storage devices, they were superseded by the introduction of a 5+1⁄4-inch floppy disk drive and interface called the Disk II in 1978.
The Apple II was chosen to be the desktop platform for the first "killer application" of the business world: VisiCalc, a spreadsheet program released in 1979.Commodore and Tandy.
On December 12, 1980, Apple (ticker symbol "AAPL") went public selling 4.6 million shares at $22 per share ($.10 per share when adjusting for stock splits as of September 3, 2022Ford Motor Company in 1956.
A critical moment in the company"s history came in December 1979 when Jobs and several Apple employees, including human–computer interface expert Jef Raskin, visited Xerox PARC in to see a demonstration of the Xerox Alto, a computer using a graphical user interface. Xerox granted Apple engineers three days of access to the PARC facilities in return for the option to buy 100,000split-adjusted shares as of September 3, 2022Apple Lisa, named after Jobs"s daughter.
The Lisa division would be plagued by infighting, and in 1982 Jobs was pushed off the project. The Lisa launched in 1983 and became the first personal computer sold to the public with a GUI, but was a commercial failure due to its high price and limited software titles.
Jobs, angered by being pushed off the Lisa team, took over the company"s Macintosh division. Wozniak and Raskin had envisioned the Macintosh as a low-cost computer with a text-based interface like the Apple II, but a plane crash in 1981 forced Wozniak to step back from the project. Jobs quickly redefined the Macintosh as a graphical system that would be cheaper than the Lisa, undercutting his former division.
In 1984, Apple launched the Macintosh, the first personal computer to be sold without a programming language.1984", a $1.5 million television advertisement directed by Ridley Scott that aired during the third quarter of Super Bowl XVIII on January 22, 1984.CNN
The advertisement created great interest in the original Macintosh, and sales were initially good, but began to taper off dramatically after the first three months as reviews started to come in. Jobs had made the decision to equip the original Macintosh with 128 kilobytes of RAM, attempting to reach a US$1,000 (equivalent to $2,608 in 2021) price point, which limited its speed and the software that could be used. The Macintosh would eventually ship for US$2,495 (equivalent to $6,508 in 2021), a price panned by critics in light of its slow performance.: 195 In early 1985, this sales slump triggered a power struggle between Steve Jobs and CEO John Sculley, who had been hired away from Pepsi two years earlier by Jobs
The board of directors instructed Sculley to contain Jobs and his ability to launch expensive forays into untested products. Rather than submit to Sculley"s direction, Jobs attempted to oust him from his leadership role at Apple.Jean-Louis Gassée, Sculley found out that Jobs had been attempting to organize a boardroom coup and called an emergency meeting at which Apple"s executive staff sided with Sculley and stripped Jobs of all operational duties.NeXT.
After the departures of Jobs and Wozniak, Sculley worked to improve the Macintosh in 1985 by quadrupling the RAM and introducing the LaserWriter, the first reasonably priced PostScript laser printer. PageMaker, an early desktop publishing application taking advantage of the PostScript language, was also released by Aldus Corporation in July 1985.desktop publishing market.
This dominant position in the desktop publishing marketprofit margin, and appeared to have no effect on total sales as power users snapped up every increase in speed. Although some worried about pricing themselves out of the market, the high-right policy was in full force by the mid-1980s, notably due to Jean-Louis Gassée"s mantra of "fifty-five or die", referring to the 55% profit margins of the Macintosh II.: 79–80
This policy began to backfire in the last years of the decade as desktop publishing programs appeared on PC clones that offered some or much of the same functionality of the Macintosh, but at far lower price points. The company lost its dominant position in the desktop publishing market and estranged many of its original consumer customer base who could no longer afford their high-priced products. The Christmas season of 1989 was the first in the company"s history to have declining sales, which led to a 20% drop in Apple"s stock price.: 117–129 During this period, the relationship between Sculley and Gassée deteriorated, leading Sculley to effectively demote Gassée in January 1990 by appointing Michael Spindler as the chief operating officer.
The company pivoted strategy and in October 1990 introduced three lower-cost models, the Macintosh Classic, the Macintosh LC, and the Macintosh IIsi, all of which saw significant sales due to pent-up demand.PowerBook with a design that set the current shape for almost all modern laptops. The same year, Apple introduced System 7, a major upgrade to the Macintosh operating system, adding color to the interface and introducing new networking capabilities.
The PenLite is Apple"s first prototype of a tablet computer. Created in 1992, the project was designed to bring the Mac OS to a tablet – but was canceled in favor of the Newton.
The success of Apple"s lower-cost consumer models, especially the LC, also led to the cannibalization of their higher-priced machines. To address this, management introduced several new brands, selling largely identical machines at different price points, aimed at different markets: the high-end Quadra models, the mid-range Centris line, and the consumer-marketed Performa series. This led to significant market confusion, as customers did not understand the difference between models.
The early 1990s also saw the discontinuation of the Apple II series, which was expensive to produce, and the company felt was still taking sales away from lower-cost Macintosh models. After the launch of the LC, Apple began encouraging developers to create applications for Macintosh rather than Apple II, and authorized salespersons to direct consumers towards Macintosh and away from Apple II.Apple IIe was discontinued in 1993.
Throughout this period, Microsoft continued to gain market share with its Windows graphical user interface that it sold to manufacturers of generally less expensive PC clones. While the Macintosh was more expensive, it offered a more tightly integrated user experience, but the company struggled to make the case to consumers.
Apple also experimented with a number of other unsuccessful consumer targeted products during the 1990s, including digital cameras, portable CD audio players, speakers, video game consoles, the eWorld online service, and TV appliances. Most notably, enormous resources were invested in the problem-plagued Newton tablet division, based on John Sculley"s unrealistic market forecasts.
Throughout this period, Microsoft continued to gain market share with Windows by focusing on delivering software to inexpensive personal computers, while Apple was delivering a richly engineered but expensive experience.Apple Lisa in
The major product flops and the rapid loss of market share to Windows sullied Apple"s reputation, and in 1993 Sculley was replaced as CEO by Michael Spindler.
With Spindler at the helm, Apple, IBM, and Motorola formed the AIM alliance in 1994 with the goal of creating a new computing platform (the PowerPC Reference Platform; PReP), which would use IBM and Motorola hardware coupled with Apple software. The AIM alliance hoped that PReP"s performance and Apple"s software would leave the PC far behind and thus counter the dominance of Windows. The same year, Apple introduced the Power Macintosh, the first of many Apple computers to use Motorola"s PowerPC processor.
In the wake of the alliance, Apple opened up to the idea of allowing Motorola and other companies to build Macintosh clones. Over the next two years, 75 distinct Macintosh clone models were introduced. However, by 1996, Apple executives were worried that the clones were cannibalizing sales of their own high-end computers, where profit margins were highest.
In 1996, Spindler was replaced by Gil Amelio as CEO. Hired for his reputation as a corporate rehabilitator, Amelio made deep changes, including extensive layoffs and cost-cutting.
This period was also marked by numerous failed attempts to modernize the Macintosh operating system (MacOS). The original Macintosh operating system (System 1) was not built for multitasking (running several applications at once). The company attempted to correct this with by introducing cooperative multitasking in System 5, but the company still felt it needed a more modern approach.Pink project in 1988, A/UX that same year, Copland in 1994, and the attempted purchase of BeOS in 1996. Talks with Be stalled when the CEO, former Apple executive Jean-Louis Gassée, demanded $300 million instead of the $125 million Apple wanted to pay.
Only weeks away from bankruptcy,NeXTSTEP was a better choice for its next operating system and purchased NeXT in late 1996 for $400 million, bringing back Apple co-founder Steve Jobs.
The board named Jobs as interim CEO and he immediately began a review of the company"s products. Jobs would order 70% of the company"s products to be cancelled, resulting in the loss of 3,000 jobs, and taking Apple back to the core of its computer offerings.recently settled with the Department of Justice over anti-competitive practices.Power Computing.Apple Store website, which was tied to a new build-to-order manufacturing that had been successfully used by PC manufacturer Dell.
On May 6, 1998, Apple introduced a new all-in-one computer reminiscent of the original Macintosh: the iMac. The iMac was a huge success for Apple selling 800,000 units in its first five months3+1⁄2-inch diskette, being an early adopter of the USB connector, and coming pre-installed with internet connectivity (the "i" in iMac)Jonathan Ive, who although hired by Amelio, would go on to work collaboratively with Jobs for the next decade to chart a new course the design of Apple"s products.
A little more than a year later on July 21, 1999, Apple introduced the iBook, a laptop for consumers. It was the culmination of a strategy established by Jobs to produce only four products: refined versions of the Power Macintosh G3 desktop and PowerBook G3 laptop for professionals, along with the iMac desktop and iBook laptop for consumers. Jobs felt the small product line allowed for a greater focus on quality and innovation.
At around the same time, Apple also completed numerous acquisitions to create a portfolio of digital media production software for both professionals and consumers. Apple acquired of Macromedia"s Key Grip digital video editing software project which was renamed Final Cut Pro when it was launched on the retail market in April 1999.iMovie in October 1999.DVD authoring software DVDirector, which Apple would sell as the professional-oriented DVD Studio Pro software product, and used the same technology to create iDVD for the consumer market.SoundJam MP audio player software from Casady & Greene. Apple renamed the program iTunes, while simplifying the user interface and adding the ability to burn CDs.
The first announcement came on March 24, 2001, that Apple was nearly ready to release a new modern operating system, Mac OS X. The announcement came after numerous failed attempts in the early 1990s, and several years of development. Mac OS X was based on NeXTSTEP, OPENSTEP, and BSD Unix, with Apple aiming to combine the stability, reliability, and security of Unix with the ease of use afforded by an overhauled user interface, heavily influenced by NeXTSTEP. To aid users in migrating from Mac OS 9, the new operating system allowed the use of OS 9 applications within Mac OS X via the Classic Environment.
On October 23, 2001, Apple debuted the iPod portable digital audio player. The product, which was first sold on November 10, 2001, was phenomenally successful with over 100 million units sold within six years.
In 2003, Apple"s iTunes Store was introduced. The service offered music downloads for 99¢ a song and integration with the iPod. The iTunes Store quickly became the market leader in online music services, with over five billion downloads by June 19, 2008.
In 2002, Apple purchased Nothing Real for their advanced digital compositing application Shake,Emagic for the music productivity application Logic. The purchase of Emagic made Apple the first computer manufacturer to own a music software company. The acquisition was followed by the development of Apple"s consumer-level GarageBand application.iPhoto in the same year completed the iLife suite.
At the Worldwide Developers Conference keynote address on June 6, 2005, Jobs announced that Apple would move away from PowerPC processors, and the Mac would transition to Intel processors in 2006.MacBook Pro and iMac became the first Apple computers to use Intel"s Core Duo CPU. By August 7, 2006, Apple made the transition to Intel chips for the entire Mac product line—over one year sooner than announced.Mac Pro, MacBook, and MacBook Pro became their respective successors.Boot Camp in 2006 to help users install Windows XP or Windows Vista on their Intel Macs alongside Mac OS X.
Apple"s success during this period was evident in its stock price. Between early 2003 and 2006, the price of Apple"s stock increased more than tenfold, from around $6 per share (split-adjusted) to over $80.Dell"s market cap in January 2006,Michael Dell should eat his words.
During his keynote speech at the Macworld Expo on January 9, 2007, Jobs announced that Apple Computer, Inc. would thereafter be known as "Apple Inc.", because the company had shifted its emphasis from computers to consumer electronics.iPhoneApple TV.
In an article posted on Apple"s website on February 6, 2007, Jobs wrote that Apple would be willing to sell music on the iTunes Store without digital rights management (DRM), thereby allowing tracks to be played on third-party players, if record labels would agree to drop the technology.EMI jointly announced the removal of DRM technology from EMI"s catalog in the iTunes Store, effective in May 2007.FairPlay DRM.
In July 2008, Apple launched the App Store to sell third-party applications for the iPhone and iPod Touch.App Store could become a billion-dollar business for Apple.
On January 14, 2009, Jobs announced in an internal memo that he would be taking a six-month medical leave of absence from Apple until the end of June 2009 and would spend the time focusing on his health. In the email, Jobs stated that "the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well", and explained that the break would allow the company "to focus on d