A student at the University of Texas at Austin in 1984, Michael Dell founded the company as PC's Limited [1] with capital of $1000.[2] Operating from Michael Dell's off-campus dormitory room at Dobie Center,[3] the startup 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.[4] Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family.
In 1985, the company produced the first computer of its own design — the "Turbo PC", sold for US$795[5] — containing 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, Limited became one of the first to succeed with it. The company grossed more than $73 million in its first year of trading.
In 1987 the company announced that it would change its name to Dell
Computer Corporation, because it was more professional than "PC's
Limited" and avoided problems with the word "Limited" as a corporate
name in Britain.[6]
The company set up its first operations in Ireland; 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 June 22 initial public offering of 3.5 million shares at $8.50 a share.[7]
In 1989, Dell Computer set up its first on-site service programs in
order to compensate for the lack of local retailers prepared to act as
service centers. 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. Michael Dell became the youngest CEO of a Fortune 500 company.
In 1996, Dell began selling computers via its web site.
In 2002, Dell attempted to expand by tapping into the multimedia and home-entertainment markets with the introduction of televisions, Dell Axim handhelds, and Dell DJ digital audio players. 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 Rollins, who had held a number of executive posts at Dell, became 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.[8]
On January 31, 2007, Kevin B. Rollins, CEO of the company since 2004, resigned as both CEO and as a director, and Michael Dell resumed his former role 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.
The Virtual Era is dawning. Looking back on the evolution from mainframe to mini computing, to PCs connected on client servers, to the internet era, it’s been an interesting journey. Technology is everywhere and growing in potential. We couldn’t imagine our lives without it. And we need you to help us innovate the solutions that will thrive in this new age.
Our purpose as an organization has always been clear — to deliver technology solutions that enable people everywhere to grow and thrive. That single-minded focus means that our business is free to transform and adapt to the needs of the world at large. Over the past 26 years, we’ve built a solid, worldwide Dell community:
Source: Dell.com and Wikipedia
In 1985, the company produced the first computer of its own design — the "Turbo PC", sold for US$795[5] — containing 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, Limited became one of the first to succeed with it. The company grossed more than $73 million in its first year of trading.
In 1996, Dell began selling computers via its web site.
In 2002, Dell attempted to expand by tapping into the multimedia and home-entertainment markets with the introduction of televisions, Dell Axim handhelds, and Dell DJ digital audio players. 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 Rollins, who had held a number of executive posts at Dell, became 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.[8]
On January 31, 2007, Kevin B. Rollins, CEO of the company since 2004, resigned as both CEO and as a director, and Michael Dell resumed his former role 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.
Vision. Drive. Stamina. That's where we started.
For nearly three decades, Dell has been on an incredible journey, experiencing positive growth on a global scale. Through it all, it's our people — customers, business partners and team members — who keep us moving through the rapidly evolving world of technology.Key moments in our history.
Our company history is full of interesting developments. And we couldn't help but pick out a few of our favorite milestones to share:- 1984 — At the age of 19, Michael Dell found PC's Limited with $1,000 and a game-changing vision for the technology industry.
- 1988 — We complete our initial public offering, raising $30 million and increasing market capitalization from $1,000 to $85 million.
- 1992 — Dell debuts on the Fortune 500, making Michael Dell the youngest CEO on the list.
- 1996 — Dell.com launches, generating $1 million in sales per day just six months after site is live.
- 2001 — Dell becomes the No. 1 computer systems provider worldwide.
- 2005 — Dell tops the list of "America's Most Admired Companies" in Fortune magazine.
- 2010 — Dell is ranked the No. 1 healthcare information technology services provider in the world according to Gartner, Inc.
The Virtual Era is dawning. Looking back on the evolution from mainframe to mini computing, to PCs connected on client servers, to the internet era, it’s been an interesting journey. Technology is everywhere and growing in potential. We couldn’t imagine our lives without it. And we need you to help us innovate the solutions that will thrive in this new age.
Our purpose as an organization has always been clear — to deliver technology solutions that enable people everywhere to grow and thrive. That single-minded focus means that our business is free to transform and adapt to the needs of the world at large. Over the past 26 years, we’ve built a solid, worldwide Dell community:
- 100,000+ team members in over 180 countries
- 400,000 solutions in classrooms worldwide
- #1 healthcare IT services provider in the world
- 3.5 million connections via our social web community
Source: Dell.com and Wikipedia
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