Information AboutDell |
Dell Inc. ( ), an American Computer-hardware company based in Round Rock , Texas , develops, manufactures, sells and supports Personal Computer s, Servers , Data Storage Device s, Network Switch es, Personal Digital Assistant s (PDAs), Software , Television s, computer Peripheral s and other Technology -related products. As of 2006 , Dell employed more than 78,700 people worldwide. Formerly holding a substantial lead in sales of PCs and of servers, the company recently slipped behind Hewlett-Packard (HP) in these markets. In 2006, , which consistently out-performed the market over the previous 15 years.Frigo, Mark L, Needles, Belvard E and Marian Powers: "Strategy and Integrated Financial Ratio Performance Measures: Further Evidence of the Financial Performance Scorecard and High Performance Companies". ''Studies in Managerial and Financial Accounting'' Volume 16, (2006) HISTORY , the founder, chairman and CEO of Dell.]] Origins and evolution While a student at the -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. Michael Dell dropped out of school in order to focus full-time on his fledgling Business . In 1985 , the company produced the first computer of its own design (the "Turbo PC"), which contained an Intel 8088 -compatible processor running at a 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. Although not the first company to use this Model , PC's Limited became one of the first to succeed with it. The company Grossed more than $73 million in its first year. In 1989, PC's Limited set up its first on-site-service programs in order to compensate for the lack of local retailers prepared to act as service centers. Also in 1987, the company set up its first operations in the United Kingdom ; eleven more international operations followed within the next four years. In June 1988, Dell's market capitalization grew by $30 million to $80 million from its Initial Public Offering of 3.5 million shares at $8.50 a share. The company changed its name to "Dell Computer Corporation " in 1988. In 1990, Dell Computer Corporation 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, '' Fortune '' magazine included Dell Computer Corporation in its list of the world's 500 largest companies. In 1996, Dell began selling computers via its web site. In 1999, Dell overtook Compaq to become the largest seller of Personal Computers in the United States Of America with $25 billion in revenue reported in January 2000. In 2002, Dell attempted to expand by tapping into the multimedia and home-entertainment markets with the introduction of Television s, handhelds, and Digital Audio Player s. Dell has also produced Dell-brand printers for home and small-office use. 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 B. Rollins, who had held a number of executive posts at Dell, was appointed the new CEO. In 2005, the share of sales coming from international markets increased, as revealed in the company's press releases for the first two quarters of its fiscal 2005 year. In February 2005 Dell appeared in first place in a ranking of the "Most Admired Companies" published by ''Fortune'' Magazine . In November 2005 '' BusinessWeek '' magazine published an article titled "It's Bad to Worse at Dell" about shortfalls in projected earnings and sales, with a worse-than-predicted third-quarter financial performance — a bad omen for a company that had routinely underestimated its earnings. Dell acknowledged that faulty capacitors on the Motherboards of the Optiplex GX270 and GX280 had already cost the company $300 million. The CEO, Kevin Rollins, attributed the bad performance partially to Dell's focus on low-end PCs. In 2006, Dell purchased the computer hardware manufacturer Alienware . Dell Inc.'s plan anticipated Alienware continuing to operate independently under its existing management. Alienware expected to benefit from Dell's efficient manufacturing system.2 On January 31 , 2007, Kevin B. Rollins, CEO of the company since 2004, resigned abruptly as both CEO and as a director, and Michael Dell returned as CEO. Investors and many shareholders had called for Rollins' resignation because of poor company performance. At the same time, the company announced that, for the fourth time in five quarters, earnings would fail to reach consensus analyst-estimates. In February 2007, Dell became the subject of formal investigations by the US SEC http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9002535&source=rss_news50 and the US Attorney General for the Southern District of New York . {Link without Title} The company has not formally filed financial reports for either the third or fourth fiscal quarter of 2006, and several class action lawsuits http://www.dallasnews.com/sharedcontent/APStories/stories/D8N1MLNO0.html in the wake of its Recent financial performance. The company's lack of formal financial disclosure would normally subject the company to de-listing from the NASDAQ , http://www.crn.com/showArticle.jhtml?articleID=193004297 but the exchange has granted Dell a waiver, allowing the stock to trade normally. http://www.crn.com/sections/breakingnews/dailyarchives.jhtml?articleId=196903036 On 1 March , 2007, the company issued a preliminary quarterly earnings report which showed 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 . [http://www.thestreet.com/_yahoo/newsanalysis/techhardware/10341935.html Dell and AMD On processors and that later in the year Dell would release a two-socket, multi-processor server using AMD Opteron processors, moving away from using Dell's traditional Intel processors. CNet 's News.com on August 17 , 2006 cited Dell's CEO Kevin Rollins as attributing the move to AMD processors to cost-advantage 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 two new AMD-based servers — the PowerEdge 6950 and the PowerEdge SC1435 — marking its entry into the AMD-based server market. On November 1 , 2006, Dell's website began offering notebooks with AMD processors (the Inspiron 1501 with a 15.4" display) with the choice of a single-core MK-36 processor, dual-core Turion X2 chips or Mobile Sempron. Dell and desktop Linux First attempt in 2000 In 1998, Ralph Nader asked Dell (and 5 other major OEM s) to offer alternate operating systems to Microsoft Windows , specifically including Linux , for which "there is clearly a growing interest" | |||||||||||||||||||||||||||||||||||||||||||
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. http: http://www.dell.com/content/topics/global.aspx/corp/pressoffice/en/2007/2007_07_19_rr_001?c=us&l=en&s=corp Dell Inc. On June 5 , 2007, Dell set a goal of becoming the greenest technology company on Earth for the long term. The company launched a Zero-carbon initiative that includes: # Reducing Dell's Carbon Intensity by 15 percent by 2012 # Requiring primary suppliers to report carbon emissions data during quarterly business reviews # Partnering with customers to build the "greenest PC on the planet" # Expanding the company's carbon-offsetting program, "Plant a Tree for Me". The company introduced the term " The Re-Generation " during a Round Table in London commemorating 2007 World Environment Day . "The Re-Generation" refers to people of all ages throughout the world who want to make a Difference in improving the world's environment. Dell also talked about plans to take the lead in setting an environmental standard for the " Technology Industry " and maintaining that Leadership in the future. Competition Dell's major competitors include Apple , Hewlett-Packard , Sun Microsystems , Gateway , Lenovo , Sony , Acer , Toshiba and Asus . Dell and its subsidiary, Alienware , compete in the enthusiast market against Falcon Northwest , Voodoo PC (a division 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 Hewlett-Packard with roughly 15%. By leveraging its business-model, Dell attempts to undercut competitors and offer customers a more attractive choice of personal computers and other equipment. Dell In Late 2006 lost its once-substantial lead in the PC business to Hewlett-Packard . Both Gartner and IDC estimated that in the third quarter of 2006, HP shipped more units world-wide than did Dell. Dell's 3.6% growth paled in comparison to HP's 15% growth during the same period. The problem got worse in the fourth quarter, when Gartner estimated that Dell PC shipments declined 8.9% (versus HP's 23.9% growth). As a result, at the end of 2006 Dell's overall PC market share stood at 13.9% (versus HP's 17.4%). IDC has also 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 a 8.8% loss year-over-year, primarily to competitors EMC and IBM . http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070312:MTFH05034_2007-03-12_21-17-33_N12385967&type=comktNews&rpc=44 "Shut down Apple" Dell conducted a public war-of-words with Apple CEO Steve Jobs , starting when Jobs first criticized Dell for making "un-innovative beige boxes". On October 5 , 1997, when asked what he would do if he owned then-troubled Apple Computer , Michael Dell said "I'd shut it down and give the money back to the shareholders." CNet LAWSUITS & OTHER LEGAL ACTION
http://www.findarticles.com/p/articles/mi_m0EIN/is_2005_Oct_25/ai_n15732802 Many claims emerged that Dell had used unfair practices to obtain huge incentives. http://www.theregister.co.uk/2005/06/23/dell_nc_suit Dell fought a lawsuit which the court system later dismissed. http://www.newsobserver.com/104/story/438280.html
http://atwork.blogs.oregonlive.com/uploads/487501-dellsuit.pdf Moves have begun to turn the case into a Class Action .
"Part of the suit claims that though Dell gave the impression of an "award-winning service" available to consumers "24 hours a day, seven days a week," consumers faced "nightmarish obstacles" to get help and technical service for their computers. New York Attorney General Andrew Cuomo said that New York had received 700 complaints about Dell — more than the number of complaints for any other related subject."
SEC INVESTIGATION On August 17 2007 , the company announced that after an internal investigation into its accounting practises 14 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 the U.S. Securities And Exchange Commission over some documents and information that Dell Inc. had submitted. 15 . CRITICISMS burnt by bad Sony Lithium-ion Battery ]] In the 1990s Dell switched from using primarily ATX Motherboard s and PSU , to using boards and power-supplies with mechanically-identical but differently-wired connectors. {Link without Title} Mueller, Scott. ''Upgrading and Repairing PCs'', 13ed, Indianapolis: Que Publications, 2002, ISBN 0789725428, and subsequent editions In 2005, according to the Better Business Bureau, complaints about Dell more than doubled , to 1,533. Consumer complaints about the quality of customer-service mounted, and in 2006, Dell acknowledged that it had problems with customer service. Issues included call transfers {Link without Title} of more than 45% of calls and long wait-times. Dell's blog detailed the response {Link without Title} : "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. {Link without Title} SEE ALSO
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''Dell's with Ubuntu called Dellbuntu'' Notes EXTERNAL LINKS Official sites
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