Dell

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"DELL" and "Dell Inc." redirect here. For its parent company, see Dell Technologies. For other uses, see Dell (disambiguation).

Dell Inc.
FormerlyPC's Limited (1984-1987)
TypeSubsidiary
IndustryComputer hardware
Computer software
FoundedFebruary 1, 1984; 37 years ago (1984-02-01)
FounderMichael Dell
Headquarters
Round Rock, Texas
,
U.S.[1]
Area served
Worldwide
Key people
Michael Dell
(Chairman & CEO)
Products
  • Personal computers
  • Servers
  • Peripherals
  • Smartphones
  • Televisions
RevenueIncrease US$94 billion (FY 2021)[2]
Number of employees
165,000 (Early 2020)[3]
ParentDell Technologies
Websitewww.dell.com

Dell is an American company that develops, sells, repairs, and supports computers and related products and services, and is owned by its parent company of Dell Technologies. Founded in 1984 by Michael Dell, the company is one of the largest technology corporations in the world, employing more than 165,000 people in the U.S. and around the world.[4][5]

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 well known for its innovations in supply chain management and electronic commerce, particularly its direct-sales model and its "build-to-order" or "configure to order" approach to manufacturing—delivering individual PCs configured to customer specifications.[6][5] Dell was a pure hardware vendor for much of its existence, but with the acquisition in 2009 of Perot Systems, Dell entered the market for IT services. The company has since made additional acquisitions in storage and networking systems, with the aim of expanding their portfolio from offering computers only to delivering complete solutions[buzzword] for enterprise customers.[7][8]

Dell was listed at number 51 in the Fortune 500 list until 2014.[9] Its rank is 34th on the Fortune 500 currently.[10] It is the world's 3rd largest personal computer vendor by unit sales as of January 2021, following Lenovo and HP Inc..[11] Dell is the largest shipper of PC monitors worldwide.[12] Dell is the sixth-largest company in Texas by total revenue, according to Fortune magazine.[13] It is the second-largest non-oil company in Texas (behind AT&T) and the largest company in the Greater Austin area.[14] After going private in 2013, the newly confidential nature of its financial information prevents the company from being ranked by Fortune. It was a publicly traded company (Nasdaq: DELL), as well as a component of the NASDAQ-100 and S&P 500, until it was taken private in a leveraged buyout which closed on October 30, 2013.

In 2015, Dell acquired the enterprise technology firm EMC Corporation; following the completion of the purchase, Dell and EMC became divisions of Dell Technologies. Dell EMC as a part of Dell Technologies focus on data storage, information security, virtualization, analytics, cloud computing and other related products and services.[15]

History[]

Main article: History of Dell

Dell was founded by Michael Dell under the name PCs Limited while still a student at the University of Texas, in 1984, selling IBM compatible PCs directly to end-users. Dell continued expanding into the consumer and corporate market both via sales and acquisitions. The product range increased over time to encompass workstations, servers, laptops, thin clients, peripherals and services. In 2016 the company merged with EMC Corporation, a storage provider, to form Dell Technologies.

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

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 [16][17][18]
EqualLogic January 28, 2008 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 [19][20][21]
Perot Systems 2009 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 U.S. 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. [22][23][24]
KACE Networks February 10, 2010 KACE Networks was a leader in systems management appliances. [25]
Boomi November 2, 2010 Cloud integration leader [26]
Compellent February 2011 The acquisition extended Dell's storage solution[buzzword] portfolio. [27]
Force10 networks August 2011 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. [28]
AppAssure Software 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. [29]
SonicWall May 9, 2012 A company with 130 patents, SonicWall develops security products, and is a network and data security provider. [30][31]
Wyse April 2, 2012 A global market-leader for thin client systems. [29][32]
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. [29][33]
Quest Software September 28, 2012 [34][35][36][37]
Gale Technologies November 16, 2012 A provider of infrastructure automation products. Gale Technologies was founded in 2008 and is headquartered in Santa Clara, California. [38]
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. [39][40]
StatSoft March 24, 2014 A global provider of analytics software, in order to bolster its big data solutions offering. [41]

Acquisition of EMC[]

On October 12, 2015, Dell announced its intent to acquire the enterprise software and storage company EMC Corporation. At $67 billion, it has been labeled the "highest-valued tech acquisition in history".[42][43]

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.[44] It's thought that the company's value has roughly doubled since then.[45] EMC was being pressured by Elliott Management, a hedge fund holding 2.2% of EMC's stock, to reorganize their unusual "Federation" structure, in which EMC's divisions were effectively being run as independent companies. Elliott argued[46] this structure deeply undervalued EMC's core "EMC II" data storage business, and that increasing competition between EMC II and VMware products was confusing the market and hindering both companies. The Wall Street Journal estimated that in 2014 Dell had revenue of $27.3 billion from personal computers and $8.9bn from servers, while EMC had $16.5bn from EMC II, $1bn from RSA Security, $6bn from VMware, and $230 million from Pivotal Software.[47] EMC owns around 80 percent of the stock of VMware.[48] The proposed acquisition will maintain VMware as a separate company, held via a new tracking stock, while the other parts of EMC will be rolled into Dell.[49] Once the acquisition closes Dell will again publish quarterly financial results, having ceased these on going private in 2013.[50]

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.[47][51] Commentators have questioned the deal, with 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.[52] 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."[53] The Register reported the view of William Blair & Company that the merger would "blow up the current IT chess board", forcing other IT infrastructure vendors to restructure to achieve scale and vertical integration.[54] The value of VMware stock fell 10% after the announcement, valuing the deal at around $63–64bn rather than the $67bn originally reported.[55] Key investors backing the deal besides Dell were Singapore's Temasek Holdings and Silver Lake Partners.[56]

On September 7, 2016, Dell completed its acquisition of EMC. 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.[57][58][59]

Dell facilities[]

Dell's headquarters is located in Round Rock, Texas.[60] As of 2013 the company employed about 14,000 people in central Texas and was the region's largest private employer,[61] which has 2,100,000 square feet (200,000 m2) of space.[62] As of 1999 almost half of the general fund of the city of Round Rock originated from sales taxes generated from the Dell headquarters.[63]

Dell previously had its headquarters in the Arboretum complex in northern Austin, Texas.[64][65] In 1989 Dell occupied 127,000 square feet (11,800 m2) in the Arboretum complex.[66] In 1990, Dell had 1,200 employees in its headquarters.[64] 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.[67] 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.[68] Dell's lease in the Arboretum had been scheduled to expire in 1994.[69]

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.

By 1996, Dell was moving its headquarters to Round Rock.[70] 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.[71] 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.[72]

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.[73] In January 2001, the company leased the space in Las Cimas 2, located along Loop 360. Las Cimas 2 housed Dell's executives, the investment operations, and some corporate functions. Dell also had an option for 138,000 square feet (12,800 m2) of space in Las Cimas 3.[74] 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.[75] 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.[74] 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.[76]

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.[62]

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 include Penang, Malaysia; Xiamen, China; Bracknell, UK; Manila, Philippines[77] Chennai, India;[78] Hyderabad, India; Noida, India; Hortolandia and Porto Alegre, Brazil; Bratislava, Slovakia; Łódź, Poland;[79] Panama City, Panama; Dublin and Limerick, Ireland; Casablanca, Morocco and Montpellier, France.

The US and India are the only countries that have all Dell's business functions and provide support globally: research and development, manufacturing, finance, analysis, and customer care.[80]

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.[81]

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.[82]

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.[83] The company's approach has changed, as cited in the 2006 Annual Report, which states, "We are continuing to expand our use of original design manufacturing partnerships and manufacturing outsourcing relationships." The Wall Street Journal reported in September 2008 that "Dell has approached contract computer manufacturers with offers to sell" their plants.[84] 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.[85]

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 have been closed in 2008 and early 2009, respectively. The 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, and Dell's contract with the state requires them to repay the incentives for failing to meet the conditions.[86][87] Most of the work that used to take place in Dell's U.S. plants was transferred to contract manufacturers in Asia and Mexico, or some of Dell's own factories overseas. The Miami, Florida, facility of its Alienware subsidiary remains in operation, while Dell continues to produce its servers (its most profitable products) in Austin, Texas.[85]

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.[88] European Union officials said they would investigate a €52.7million aid package the Polish government used to attract Dell away from Ireland.[89] European Manufacturing Facility 1 (EMF1, opened in 1990) and EMF3 form part of the Raheen Industrial Estate near Limerick. EMF2 (previously a Wang facility, later occupied by Flextronics, situated in Castletroy) closed in 2002,[citation needed] and Dell Inc. has consolidated production into EMF3 (EMF1 now[when?] contains only offices).[90] Subsidies from the Polish government did keep Dell for a long time.[91] After ending assembly in the Limerick plant the Cherrywood Technology Campus in Dublin was the largest Dell office in the republic with over 1200 people in sales (mainly UK & Ireland), support (enterprise support for EMEA) and research and development for cloud computing, but no more manufacturing except[92] Dell's Alienware subsidiary, which manufactures PCs in an Athlone, Ireland plant. Whether this facility will remain in Ireland is not certain.[93] Construction of EMF4 in Łódź, Poland has started: Dell started production there in autumn 2007.[94]

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.[95]

Products[]

Scope and brands[]

Dell's tagline "Yours is Here", as seen at their Mall of Asia branch in Pasay, Philippines

The corporation markets specific brand names to different market segments.

Its Business/Corporate class includes:

  • OptiPlex (office desktop computer systems)
  • Dimension (home desktop computer systems)
  • Vostro (office/small business desktop and notebook systems)
  • n Series (desktop and notebook computers shipped with Linux or FreeDOS installed)
  • Latitude (business-focused notebooks)
  • Precision (workstation systems and high-performance "Mobile Workstation" notebooks),[96]
  • PowerEdge (business servers)
  • PowerVault (direct-attach and network-attached storage)
  • Force10 (network switches)
  • PowerConnect (network switches)
  • Dell Compellent (storage area networks)
  • EqualLogic (enterprise class iSCSI SANs)
  • 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 includes USB keydrives, LCD televisions, and printers; Dell monitors includes LCD TVs, plasma TVs and projectors for HDTV and monitors. Dell UltraSharp is further a high-end brand of monitors.

Dell service and support brands include the Dell Solution Station (extended domestic support services, previously "Dell on Call"), Dell Support Center (extended support services abroad), Dell Business Support (a commercial service-contract that provides an industry-certified technician with a lower call-volume than in normal queues), Dell Everdream Desktop Management ("Software as a Service" remote-desktop management, originally a SaaS company founded by Elon Musk's cousin, Lyndon Rive, which Dell bought in 2007[97]), and Your Tech Team (a support-queue available to home users who purchased their systems either through Dell's website or through Dell phone-centers).

Discontinued products and brands include Axim (PDA; discontinued April 9, 2007),[98] Dimension (home and small office desktop computers; discontinued July 2007), Dell Digital Jukebox (MP3 player; discontinued August 2006), Dell PowerApp (application-based servers), and Dell Optiplex (desktop and tower computers previously supported to run server and desktop operating systems).

Security[]

Self-signed root certificate[]

In November 2015 it emerged that several Dell computers had shipped with an identical pre-installed root certificate known as "eDellRoot".[99] This raised such security risks as attackers impersonating HTTPS-protected websites such as Google and Bank of America and malware being signed with the certificate to bypass Microsoft software filtering.[99] Dell apologized and offered a removal tool.[100]

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.[101] This was possible even if a customer enabled private browsing and deleted their browser cookies.[101] Ars Technica recommended that Dell customers uninstall the program until the issue was addressed.[101]

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 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.[citation needed]

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.[citation needed]

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 and El Salvador.[102]

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!"[103]

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.[104]

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.[105] In 2012, the event was held December 11–13.[106] In 2013, the event was held December 11–13.[107] In 2014, the event was held November 4–6.[108]

Dell partner program[]

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.[109]

Dell India has started Online Ecommerce website[110] with its Dell Partner www.compuindia.com GNG Electronics Pvt Ltd[111] termed as Dell Express Ship Affiliate(DESA). The main objective was to reduce the delivery time. Customers who visit Dell India official site are given the option to buy online which then will be redirected to Dell affiliate website compuindia.com.[80]

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.[citation needed]

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.[112] At Lenovo's request, the (U.S.) National Advertising Division (NAD) evaluated the claim, and reported that Dell did not have enough evidence to support it.[113]

Retail[]

Dell first opened their retail stores in India.[80]

United States[]

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 U.S. In 2007, Dell started shipping its products to major retailers in the U.S. once again, starting with Sam's Club and Wal-Mart. Staples, the largest office-supply retailer in the U.S., and Best Buy, the largest electronics retailer in the U.S., became Dell retail partners later that same year.

Kiosks[]

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 U.S. due to expansion into retail stores.[114] By June 3, 2010, Dell had also shut down all of its mall kiosks in Australia.[115]

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 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 continues to run and operate its various kiosks in 18 shopping centers throughout Australia. On March 31, 2010, Dell announced to Australian Kiosk employees that they were shutting down the Australian/New Zealand Dell kiosk program.

In Germany, Dell is selling selected smartphones and notebooks via Media Markt and Saturn, as well as some shopping websites.[116]

Competition[]

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%.

In late 2006, Dell lost its lead in the PC business to Hewlett-Packard. Both Gartner and IDC estimated that in the third quarter of 2006, HP shipped more units[117] worldwide than Dell did. Dell's 3.6% growth paled in comparison to HP's 15% growth during the same period. The problem got worse in the fourth quarter, when Gartner estimated[118] that Dell PC shipments declined 8.9% (versus HP's 23.9% growth). As a result, at the end of 2006 Dell's overall PC market share stood at 13.9% (versus HP's 17.4%).

IDC reported that Dell lost more server market share than any of the top four competitors in that arena. IDC's Q4 2006 estimates show Dell's share of the server market at 8.1%, down from 9.5% in the previous year. This represents an 8.8% loss year-over-year, primarily to competitors EMC and IBM. As of 2021, Dell is the third-largest PC manufacturer after Lenovo and HP.[citation needed]

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 as fibre channel and iSCSI storage area networks. The relationship also promotes and sells OEM versions of backup, recovery, replication and archiving software.[119] 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 of data deduplication products as part of its TierDisk family of data storage devices.[120]

On October 17, 2011, Dell discontinued reselling all EMC storage products, ending the partnership 2 years early.[121][122] 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.[123] It is listed in 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).[124]

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.[125] 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'[126] was "hypocritical".[127] Dell has launched its first products completely free of PVC and BFRs with the G-Series monitors (G2210 and G2410) in 2009.[128]

In its 2012 report on progress relating to conflict minerals, the Enough Project rated Dell the eighth-highest of 24 consumer electronics companies.[129]

Green initiatives[]

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.[130] On February 6, 2007, the National Recycling Coalition awarded Dell its "Recycling Works" award for efforts to promote producer responsibility.[131] 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.[132]

On June 5, 2007, Dell set a goal of becoming the greenest technology company on Earth for the long term.[133] The company launched a zero-carbon initiative that includes:

  1. reducing Dell's carbon intensity by 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 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".[134]

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.[citation needed]

Criticism[]

See also: Lawsuits involving Dell Inc.

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).[135][136]

In 2005, complaints about Dell more than doubled to 1,533, after earnings grew 52% that year.[137]

In 2006, Dell acknowledged that it had problems with customer service. Issues included call transfers[138] of more than 45% of calls and long wait times. Dell's blog detailed the response: "We're spending more than a $100 million—and a lot of blood, sweat, and tears of talented people—to fix this."[139] Later in the year, the company increased its spending on customer service to $150 million.[140] 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.[141][142]

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.[143] 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.[144] It was alleged that Dell had not disclosed large exclusivity payments received from Intel for agreeing not to buy processors from rival manufacturer AMD. In 2010 Dell finally paid $100 million to settle the SEC's charges of fraud. Michael Dell and other executives also paid penalties and suffered other sanctions, without admitting or denying the charges.[145]

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.[146] 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.[147]

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.[148]

See also[]

References[]

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Further reading[]

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