History of Dell
Dell Computer Corporation was founded in 1984 by current chief executive officer and namesake, Michael Dell. Originally the company was incorporated in Texas and headquartered in Round Rock, Texas. In 1987 however, Dell re-incorporated in Delaware, subsuming all assets of the earlier company. The firm focused on the sales of its personal computer models to small and medium size business customers, government agencies, educational institutions, and individual consumers. However, in the past few years Dell has expanded manufacturing beyond personal computer systems and has become a leading supplier of technology for the Internet. Dell’s sales generated over $25 billion in 1999 with approximately two-thirds of these revenues coming from businesses and government sales and one-third from individual consumers.
Revenues from 1998 - 2000
Dell has experienced impressive growth in both revenue and share of its targeted market since 1998. In fiscal year 1999 net revenues were up 48% over fiscal year 1998 to just over $18 billion. The upward trend continued in fiscal year 2000 when the company saw its net revenue jump another 38% over the preceding year to over $25 billion. These increases came at a time when the market became more competitive due to manufacturing process improvements and prices on individual units were actually going down. Thus, Dell’s increase in net revenue was largely due to increases in the number of units sold. Unit sales increased 65% in 1999 and a further 50% 64% in 2000. The increases experienced by Dell Computers appeared across all product lines even though some grew faster than others.