Dell
102490
225650405
2008-07-14T19:02:22Z
Rjwilmsi
203434
gen fixes + link/fix date fields in cite templates (explanation [[User:Rjwilmsi#My_correction_of_dates_in_templates|here]]) using [[Project:AutoWikiBrowser|AWB]]
{{otheruses4|the corporation known as Dell Inc}}
{{ infobox company
| name = Dell, Inc.
| logo = [[Image:Dell logo.svg|200px|Dell Logo]]
| type = [[Public company|Public]] ({{NASDAQ|DELL}} {{hkex|4331}})
| slogan = ''Yours Is Here''<br />''Uniquely You'' ([[Australia]])<br />''Easy as DELL'' ([[Europe]])
| foundation = [[Austin, Texas]] ([[November 4]],[[1984]]) (as "PC's Limited"). IPO on [[June 22]], [[1988]], at $8.50/share<ref>http://www.dell.com/content/topics/global.aspx/corp/investor/en/faqs?c=us&l=en&s=corp</ref>: ~ 3 years 7 months after founding.
| location = [[Round Rock]], [[Texas]]<br />{{USA}}
| key_people = [[Michael Dell]], founder, [[Chairman]] and [[CEO]]<br>[[Donald J. Carty|Don Carty]], [[Chief Financial Officer|CFO]]
| num_employees = 88,200 worldwide<ref name="10K2008" />
| products = [[Desktop computer|Desktops]]<br />[[Server (computing)|Servers]]<br />[[Laptop|Notebook]]s<br />[[Peripheral]]s<br />[[Computer printer|Printers]]
| market cap = $45.09 Billion [[United States dollar|USD]] (2008)<ref>http://finance.yahoo.com/q/ks?s=DELL</ref>
| revenue = {{increase}}$62.49 Billion [[United States dollar|USD]] (2008)<ref name="10K2008">{{cite web|title=Form 10-K|publisher=Dell Inc., United States Securities and Exchange Commission|date=2008-03-31|url=http://www.sec.gov/Archives/edgar/data/826083/000095013408005718/d55156e10vk.htm|accessdate=2008-07-01|quote=For the fiscal year ended: February 1, 2008}}</ref>
| net_income = {{increase}}$2.9 billion USD (2008)<ref name="10K2008" />
| operating_income = {{increase}}$3.4 billion USD (2008)<ref name="10K2008" />
| industry = [[Technology]]
| subsid = [[Alienware]]<br />ASAP Software<br />EqualLogic
| homepage = [http://www.dell.com/ www.dell.com]
}}
'''Dell, Inc.''' ({{nasdaq|DELL}} {{hkex|4331}}) is a [[multinational company]] based in [[Round Rock, Texas]] which develops, manufactures, sells, and supports [[personal computer]]s and other computer-related products. As of [[2008]], Dell employs more than 88,000 people worldwide.<ref name="10K2008" />
Dell grew during the 1980s and 1990s to become (for a time) the largest seller of PCs and servers. As of 2008, it held the second spot in computer-sales within the [[computer industry|industry]] behind the [[Hewlett-Packard Company]]. The company currently sells [[personal computer]]s, [[Server (computing)|servers]], [[data storage device]]s, [[network switch]]es, [[computer software|software]], computer [[peripheral]]s and [[television]]s.
In 2006, [[Fortune magazine]] ranked Dell as the 25th-largest company in the [[Fortune 500]] list, 8th on its annual [http://money.cnn.com/magazines/fortune/mostadmired/top20/ Top 20 list] of the most-admired companies in the United States. In 2007 Dell ranked 34th and 8th respectively on the equivalent lists for the year. A 2006 publication identified Dell as one of 38 high-performance companies in the [[S&P 500]] which had consistently out-performed the market over the previous 15 years.<ref>Mark L. Frigo, Belvard E. Needles 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).</ref>
{{TOClimit|limit=3}}
== History ==
[[Image:Michael Dell, square crop.jpg|thumb|[[Michael Dell]], founder of Dell]]
=== Background and origins ===
While a student at the [[University of Texas at Austin]] in 1984, [[Michael Dell]] founded the company as ''PC's Limited'' with capital of $1000.<ref>{{cite book | last = Dell | first = Michael | authorlink = Michael Dell | coauthors = Catherine Fredman | title = Direct from DELL | publisher = [[HarperCollins]] | date= 1999 | pages = pp. 13 | isbn = 0-88730-914-3 }}</ref> Operating from Michael Dell's off-campus dorm room at [[Dobie Center]] [http://www.dell.com/downloads/global/corporate/speeches/msd/2003_05_17_msd_commencement.pdf], the [[startup company| 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. 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" for $795<ref>http://news.google.co.in/archivesearch?hl=en&q=PC%27s+Limited+Turbo+PC</ref> — 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 [[business model|model]], PC's Limited became one of the first to succeed with it. The company [[gross profit|grossed]] more than $73 million in its first year.
The company changed its name to "Dell Computer [[Corporation]]" in 1988. 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. 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.
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)|Fortune]]'' magazine included Dell Computer Corporation in its list of the world's [[Fortune Global 500|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|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|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 [[Chair (official)|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)|''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.<ref>{{cite news | first=Louise | last=Lee | title= Dell Goes High-end and Hip | date= [[March 23]], [[2006]] | publisher=BusinessWeek | url=http://www.businessweek.com/technology/content/mar2006/tc20060323_034268.htm }}</ref>
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.
In February 2007, Dell became the subject of formal investigations by the US [[United States Securities and Exchange Commission|SEC]]<ref>[http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9002535&source=rss_news50 Dell reveals SEC investigation, says Q2 profit down 51%<!-- Bot generated title -->]</ref> and the US Attorney General for the Southern District of [[New York]].<ref>[http://www.theage.com.au/news/Technology/Michael-Dell-founder-and-chairman-reprises-CEO-role-at-Dell/2007/02/01/1169919438424.html Dell Returns to CEO Role at PC Maker - Breaking - Technology - theage.com.au<!-- Bot generated title -->]</ref> The company has not formally filed financial reports for either the third or fourth fiscal quarter of 2006, and several class-action lawsuits<ref>[http://www.dallasnews.com/sharedcontent/APStories/stories/D8N1MLNO0.html Dallas Morning News | News for Dallas, Texas | Texas/Southwest<!-- Bot generated title -->]</ref> have arisen in the wake of its [[as of 2007|recent]] financial performance. Dell Inc's lack of formal financial disclosure would normally subject the company to de-listing from the [[NASDAQ]],<ref>[http://www.crn.com/showArticle.jhtml?articleID=193004297 NASDAQ Sends Dell, Novell Delisting Notices - Hardware - IT Channel News by CRN and VARBusiness<!-- Bot generated title -->]</ref>
but the exchange has granted Dell a waiver, allowing the stock to trade normally.<ref>[http://www.crn.com/sections/breakingnews/dailyarchives.jhtml?articleId=196903036 Dell Buys Time From Nasdaq On Delisting - Hardware - IT Channel News by CRN and VARBusiness<!-- Bot generated title -->]</ref>
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]].<ref>[http://www.thestreet.com/_yahoo/newsanalysis/techhardware/10341935.html Dell's Dejection - TheStreet.com<!-- Bot generated title -->]</ref>
=== Dell and AMD ===
When Dell acquired [[Alienware]] early in 2006, some Alienware systems had AMD chips. On [[August 17]], 2006, a Dell [http://www.dell.com/content/topics/global.aspx/corp/pressoffice/en/2006/2006_08_17_rr_000?c=us&l=en&s=corp press-release] stated that starting in September 2006, Dell Dimension desktop computers would have [[AMD]] processors and that later in the year Dell would release a two-socket, quad-processor server using [[AMD]] [[Opteron]] chips, moving away from using Dell's traditional [[Intel]] processors.
[[CNET|CNet]]'s News.com on [[August 17]], [[2006]] [http://news.com.com/Dented+Dell+picks+up+AMD+chips+amid+SEC+probe/2100-1014_3-6106905.html?tag=nl 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 new AMD-based servers — the PowerEdge 6950 and the [[PowerEdge]] SC1435.
On [[November 1]], 2006, Dell's [http://news.com.com/Dell+puts+AMD-powered+notebooks+on+sale/2100-1006_3-6131558.html?tag=nefd.top website] began offering notebooks with AMD processors (the Inspiron 1501 with a 15.4-inch 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 (2000) ====
In 1998, [[Ralph Nader]] asked Dell (and five other major [[Original equipment manufacturer| OEM]]s) to offer alternate operating systems to [[Microsoft Windows]], specifically including [[Linux]],<ref>[http://linux.dell.com/wiki/index.php/Repository/hardware Repository/hardware - DellLinuxWiki<!-- Bot generated title -->]</ref> for which "there is clearly a growing interest"<ref>
{{cite web
|url=http://lists.essential.org/1998/info-policy-notes/msg00007.html
|title=Nader/CPT ask OEMs to offer OS alternatives"
|author=James Love (Information Policy Notes)
|date=[[March 8]], [[1998]]}}
</ref><ref>{{cite web
|url=http://web.archive.org/web/20021106195359/http://www.cptech.org/ms/
|title=CPT's Microsoft Antitrust Page
|author=Consumer Project on Technology (Internet Archive from November 6, 2002)}}
</ref>
Dell started offering Linux notebook systems which "cost no more than their Windows 98 counterparts" in 2000,<ref>
{{cite web
|url=http://archives.cnn.com/2000/TECH/computing/02/03/linux.laptop.idg/
|title=Dell offers Linux on laptops
|author=Dan Neel (CNN)
|date=[[February 3]], [[2000]]}}
</ref> and soon expanded, with Dell becoming "the first major manufacturer to offer Linux across its full product line"<ref>
{{cite web
|url=http://www.dell.com/downloads/global/corporate/speeches/msd/2000_08_15_msd_linux.pdf
|title=Michael Dell Remarks/Putting Linux on the Fast Track/Keynote at the LinuxWorld Expo"
|author=Michael Dell
|date=[[August 15]], [[2000]]|format=PDF}}
</ref>
But by early 2001 Dell had "disbanded its Linux business unit".<ref>
{{cite web
|url=http://www.theregister.co.uk/2002/03/19/microsoft_killed_dell_linux_states/
|title=Microsoft ‘killed Dell Linux’ – States
|author=Andrew Orlowski (The Register)
|date=[[March 19]], [[2002]]}}
</ref>
The reason(s) for such a quick reversal remain the subject of debate. Court documents accused [[Microsoft]] of coercing OEMs to drop Linux:
<blockquote>
Microsoft executive Joachim Kempin described his plan of retaliation and coercion to shut down competition from Linux: "I am thinking of hitting the OEM harder than in the past with anti-Linux actions" and will "further try to restrict source code deliveries where possible and be less gracious when interpreting agreements — again without being obvious about it," continuing "this will be a delicate dance"''<ref>
{{cite web
|url=http://edge-op.org/iowa/iowaconsumercase.org/assets/attachments/Petition.pdf
|title=Joe Comes, et al vs Microsoft Corporation
|author=Plaintiffs' Modified Fourth Amended Petition
|date=[[February 8]], [[2006]]
|format=PDF}}
</ref>
</blockquote>
While in a 2003 interview Michael Dell denied that Microsoft pressured Dell Inc. into doing an about-face with regard to desktop Linux, citing a lack of sales: "unfortunately the desktop Linux market didn't develop in volume. It's more of a server opportunity" but adding: "We continue to offer Linux on the desktop and there is nothing else to say."<ref>
{{cite web
|url=http://www.infoworld.com/articles/hn/xml/03/01/14/030114hndellinterview.html?Template/storypages/printfriendly.html
|title=Interview: Dell eyes Linux future despite desktop retreat
|author=Ashlee Vance (InfoWorld)
|date=[[January 14]], [[2003]]}}
</ref>
However, a 2004 report noted that Dell no longer offered pre-installed desktop Linux:
<blockquote>
So what does it mean "factory installed Linux"? If you want Dell to install Linux for you, first add on $119. But here is the annoying part. They won't send you a computer with Linux pre-installed. They sell you the computer and the boxes of software on the side, and then they make an appointment to send you someone who comes to your house or business and installs it there.''<ref>
{{cite web
|url=http://www.groklaw.net/article.php?story=20040918105850387
|title=Standards, Dell and Microsoft
|author=Pamela Jones (Groklaw)
|date=[[September 20]], [[2004]]}}
</ref>
</blockquote>
=== Ubuntu on Dell systems ===
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.<ref>[http://www.itwire.com.au/content/view/9951/53/ iTWire - Dell says all aboard for Linux PCs<!-- Bot generated title -->]</ref>
However, Dell on [[February 27]], 2007 announced that its previous announcement related to certifying the hardware as ready to work with Novell SUSE Linux and that it (Dell) had no plans to sell systems pre-installed with Linux in the near future.<ref>
{{cite web
|url=http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9011907
|title=Dell to Linux users: Not so fast"
|author=Computerworld
|date=[[February 27]], [[2007]]
}}
</ref>
On [[March 28]], 2007, Dell announced that it would begin shipping some desktops and laptops with Linux pre-installed, although it did not specify which distribution of Linux or which hardware would lead.<ref>[http://www.dell.com/content/topics/global.aspx/ideastorm/ideasinaction?c=us&l=en&s=gen Ideas In Action<!-- Bot generated title -->]</ref> On [[April 18]], 2007 a report appeared suggesting that Michael Dell used [[Ubuntu (operating system)|Ubuntu]] on one of his home systems.<ref>{{cite web
|url=http://www.desktoplinux.com/news/NS5149877302.html
|title=Michael Dell's Linux choice? Ubuntu
|author=Steven J. Vaughan-Nichols (DesktopLinux)
|date=[[April 18]], [[2007]]}}
</ref>
On [[May 1]], 2007, Dell announced it will ship the Ubuntu Linux distribution.<ref>{{cite web|url=http://news.bbc.co.uk/2/hi/business/6610901.stm|title=Dell to choose Ubuntu"|author=BBC|date=[[May 1]], [[2007]]}}</ref>
On [[May 24]], 2007, Dell started selling models with Ubuntu Linux 7.04 pre-installed: a laptop, a budget computer, and a high-end PC.<ref>http://direct2dell.com/one2one/archive/2007/05/24/15994.aspx http://linux.dell.com/</ref>
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 [[Dell IdeaStorm| IdeaStorm]] site supported extending the bundles beyond the US market, Dell later announced more international marketing.<ref>[http://direct2dell.com/one2one/archive/2007/06/27/19470.aspx Ubuntu on Two New Inspirons; Update from the Linux Live Expert Forum - Direct2Dell<!-- Bot generated title -->]</ref> On [[August 7]], 2007, Dell officially announced that it would offer one notebook and one desktop in the UK, France and Germany with Ubuntu "pre-installed". At [[LinuxWorld Conference and Expo| LinuxWorld]] 2007 Dell announced plans to provide [[Novell]]'s [[SUSE Linux Enterprise Desktop]] on selected models in China, "factory-installed".<ref>[http://direct2dell.com/one2one/archive/2007/08/07/23816.aspx Linux for Consumers in the U.K. France, and Germany; Dell/Red Hat Solutions & More - Direct2Dell<!-- Bot generated title -->]</ref>
On [[30 November]] 2007 Dell reported shifting 40,000 Ubuntu PCs.<ref>
{{citeweb
|url=http://www.channelregister.co.uk/2007/11/30/ubuntu_dell_sales/
|title=Dell moves 40,000 Ubuntu PCs |author=Ashlee Vance |publisher=Channel Register
|date= 2007-11-30
}}
</ref>
On [[24 January]] [[2008]] Dell in Germany, Spain, UK and France launched a second laptop, a XPS M1330 with [[Ubuntu 7.10]], for 849 euro or GBP 599 upwards.<ref> {{citeweb|url=http://www.engadget.com/2008/01/24/dells-xps-m1330-with-ubuntu-pre-load-in-germany-only/ |title=Dell's XPS M1330 with Ubuntu pre-load in Germany, only |publisher=Engadget |date=2008-01-24}}
</ref>
On [[22 February]] [[2008]] Dell announced plans to sell Ubuntu in [[Canada]] and in [[Latin America]]<ref>
{{citeweb|url=http://tombuntu.com/index.php/2008/02/22/ubuntu-dell-systems-launch-in-canada/|title=Ubuntu Dell Systems Launch in Canada | Tombuntu |publisher=Tombuntu |date=2008-02-22}}
</ref>
=== Personnel ===
On [[January 31]], [[2007]] Michael Dell returned to the company as CEO. As chairman of the board, Mr. Dell had significant input into the company's operations during Rollins' years as CEO. However with the return of Michael Dell as CEO, the company saw immediate changes in operations, the exodus of many senior vice-presidents and new blood brought in from outside the company.
Departures announced include:
* [[Kevin Rollins]], [[CEO]]<ref name="crn_exec_depart">[http://www.crn.com/sections/dell/dell.jhtml?articleId=197002299 Rollins Out As Dell CEO; Michael Dell Assumes Role - Hardware - IT Channel News by CRN and VARBusiness<!-- Bot generated title -->]</ref>
* James Schneider, [[CFO]]<ref name="crn_exec_depart" />
* John Medica, senior vice president, consumer products<ref name="statesman_exec_depart">http://www.statesman.com/business/content/business/stories/technology/02/14/14dell.html</ref>
* Joe Marengi, senior vice president, Americas<ref name="statesman_exec_depart" />
* John Hamlin, senior vice president, worldwide online operations<ref>http://biz.yahoo.com/bizj/070214/1417329.html?.v=3</ref>
* Paul McKinnon, senior vice president, human resources<ref name="statesman_exec_depart" />
* Rosenda Parra, senior vice president/general manager, home and small business group<ref>http://www.statesman.com/business/content/business/stories/technology/02/17/17dell.html</ref>
* Glenn E. Neland, senior vice president, procurement<ref>[http://www.nytimes.com/2007/02/17/business/17dell.html?em&ex=1171947600&en=89394cd8cc59606c&ei=5087%0A After Its Founder’s Return, Many Are Leaving at Dell - New York Times<!-- Bot generated title -->]</ref>
Additions announced include:
* Michael Dell, [[CEO]] and co-Chairman of the Board (previously Chairman of the Board)
* Don Carty, [[CFO]] and co-Chairman of the Board (previously Board member)
* Michael R. Cannon, former CEO of [[Solectron]], as President, Global Operations<ref>[http://www.statesman.com/blogs/content/shared-gen/blogs/austin/theticker/index.html statesman.com | Statesman Business Blog<!-- Bot generated title -->]</ref>
* Ron Garriques, who formerly headed [[Motorola]]'s mobile phone unit, as President, Global Consumer Group<ref>{{cite news | first=Philipp | last=Gollner | coauthors= Ritsuko Ando | title=Dell hires Motorola executive for consumer unit | date=[[2007-02-16]] | publisher=[[Reuters|Reuters.com]] | url =http://www.reuters.com/article/ousiv/idUSWNAS126320070217?sp=true | work =SAN FRANCISCO (Reuters) | pages = | accessdate = 2007-06-22 | language = }}</ref>
* Stephen F. Schuckenbrock, Senior Vice President, Global Services<ref>[http://www.nytimes.com/2007/02/17/business/17dell.html?em&ex=1171947600&en=89394cd8cc59606c&ei=5087%0A After Its Founder’s Return, Many Are Leaving at Dell - New York Times<!-- Bot generated title -->]</ref>
Mr. Dell announced a number of initiatives and plans (part of the "Dell 2.0" initiative) to improve the company's financial performance. These include:
* elimination of 2006 bonuses for employees with some discretionary awards
* reduction in the number of managers reporting directly to Mr. Dell from 20 to 12
* in a noted departure from previous years, "build, partner, and buy" to increase services capabilities
* reduction of "[[bureaucracy]]"
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 then a year later, Dell Inc planned to double its workforce to nearly 3,000 workers and to add a new building. The rise of the [[Canadian dollar]] against the [[American dollar|American currency]] to near parity as well as the high payroll compared to other centers around the world were reasons cited for the cuts. <ref>
{{cite news|author = Seggewiss, Krista & Hill, Bert| title = The Dell dream dies|publisher = The Ottawa Citizen|url = http://www.canada.com/ottawacitizen/news/story.html?id=d399d387-df1f-4400-8274-1c45879f8ed2
|date = 2008-04-24}}</ref>
The company had also announced the shutdown of its [[Edmonton, Alberta]] office, losing 900 jobs. In total, Dell announced the ending of about 8,800 jobs in 2007-2008 — 10% of its workforce.<ref>
{{cite news|author = Gollner, Phillip|title = UPDATE 1-Dell to cut nearly 900 jobs, close Canada center|publisher= Reuters|url = http://www.reuters.com/article/companyNews/idUSN3134850320080131|date = 2008-01-31}}
</ref>
== Products ==
[[Image:DellWorkstation.jpg|thumb|A typical Dell-based home [[workstation]]: note the black flat-screen monitor and black tower]]
==== Scope and brands ====
The corporation markets specific brand names to different [[market segment]]s:
* '''Business Class:''' including OptiPlex, Latitude, and Precision, where the company's advertising emphasizes long [[technology lifecycle|life-cycles]], reliability and serviceability:
:* [[Dell OptiPlex|OptiPlex]] - office [[desktop computer]] systems
:* [[Dell n Series|n Series]] - desktop and notebook computers shipped with Linux or FreeDOS installed
:* [[Dell Vostro|Vostro]] - small-business desktop and [[laptop|notebook]] systems
:* [[Dell Latitude|Latitude]] - commercially-focused notebooks
:* [[Dell Precision|Precision]] - [[Computer workstation|workstation]] systems and high-performance notebooks. (Some of them including Linux pre-installed.<ref>[http://www.dell.com/content/products/features.aspx/precn_n?c=us&cs=04&l=en&s=bsd Dell Precision Open-Source Workstations with Linux<!-- Bot generated title -->]</ref>)
:* [[Dell PowerEdge|PowerEdge]] - business [[Server (computing)|server]]s
:* [[Dell PowerVault|PowerVault]] - direct-attach and some [[network-attached storage]] (NAS)
:* [[Dell PowerConnect|PowerConnect]] - [[network switch]]es
:* [[Dell EMC]] - [[storage area network]]s (SANs)
:* [[EqualLogic]] - enterprise class iSCSI SANs
* '''Home/Consumer Class:''' including Inspiron, and XPS brands, emphasizing value, performance and expandability:
:* [[Dell Inspiron|Inspiron]] - consumer desktop and notebook systems
:* [[Dell XPS|XPS]] - enthusiast and high-performance desktop and notebook systems
:* [[Alienware]] (XPS Extreme) - high-performance gaming systems
* '''Peripherals:''' Dell has also diversified its product line to include peripheral products such as [[Keydrive|USB keydrives]], [[Liquid crystal display television|LCD televisions]], and printers.
:* [[Dell monitors]] [[LCD|LCD TVs]], [[Plasma display|plasma TVs]] and [[Video projector|projectors]] for [[High definition television|HDTV]] and [[Computer display|monitor]]s
* '''Services and support''':
:* [[Dell On Call]] - extended support services (mainly for the removal of [[spyware]] and [[computer virus]]es)
:* Dell Solution Center - extended support services (similar to "Dell On Call") for customers in the [[Europe, the Middle East and Africa|EMEA]]. The Solution Centers also support hardware for customers outside of warranty.
:* Dell Business Support - a commercial service-contract that provides an industry-certified technician with a lower call-volume than in normal queues; it covers hardware- and some software-support.
Dell also offers [[Red Hat Linux|Red Hat]] and [[SUSE]] [[Linux]] for servers; as well as "bare-bones" computers without pre-installed software (available on n Series by default and by request on XPS and Inspiron systems) at significantly lower prices. Due to Dell's licensing contract with Microsoft, Dell allegedly{{Fact|date=April 2008}} cannot offer those systems on their website and customers have to request them explicitly. (Dell does offer those systems on their web site at http://www.dell.com/content/products/features.aspx/precn_n?c=us&cs=04&l=en&s=bsd&redirect=1 ). Dell has to ship such systems with a [[FreeDOS]] disk included in the box and must issue a so-called "Windows refund" or a merchandise credit after sale of the system at the "regular" retail price.
* '''Discontinued products/brands''':
:* [[Dell Axim|Axim]] - [[Personal digital assistant|PDA]]s using [[Microsoft]]'s [[Windows Mobile]] (discontinued [[April 9]], 2007<ref>[http://direct2dell.com/one2one/archive/2007/04/11/11397.aspx Direct2Dell.com]</ref>)
:* [[Dell Dimension|Dimension]] - home and "[[Small office/home office|small office, home office]]" desktop computers (discontinued July 2007; replaced by [[Dell Inspiron|Inspiron]] desktops)
:* [[Dell Digital Jukebox]] - [[MP3 player]]s (discontinued August 2006)
:* Dell PowerApp - application-based severs
==== Manufacturing ====
Dell has a general policy of manufacturing its products close to its customers, implementing [[just-in-time (business)|just-in-time]] (JIT) manufacturing. Assembly of desktop computers for the North American market takes place at Dell plants in [[Lebanon, Tennessee| Lebanon TN]], [[Austin TX]], and [[Winston-Salem, North Carolina| Winston-Salem NC]]{{Fact|date=June 2007}}; with servers built in Austin TX. Dell assembles computers for the [[Europe, the Middle East and Africa|EMEA]] market at [[Limerick]] in the [[Republic of Ireland]], and employs about 4,500 people in that country. European Manufacturing Facility 1 (EMF1, opened in 1990) and EMF3 form part of the [[Raheen Industrial Estate]] near Limerick. EMF2 (previously a [[Wang Laboratories|Wang]] facility, later occupied by [[Flextronics]], situated in Castletroy) closed in [[2002]],{{Fact|date=September 2007}} and Dell Inc has consolidated production into EMF3 (EMF1 now <!-- as of when? --> contains only offices<ref>http://www.blythe.org/nytransfer-subs/2000ire/IEP:_The_IE_Professional_No.250_5-17</ref>). Construction of EMF4 in [[Łódź]], [[Poland]] has [[as of 2007|started]], with production planned to start there in autumn 2007.<ref>
[http://www1.euro.dell.com/content/topics/topic.aspx/emea/corporate/pressoffice/2006/uk/en/2006_09_18_brk_000?c=uk&l=en&s=corp Dell Announces Manufacturing Facility In Poland To Serve Growing Central And Eastern European Markets<!-- Bot generated title -->]
</ref>
Dell's assembly-plants in [[China]] and [[Malaysia]] assemble 95% of Dell notebooks. Dell Inc has invested <!-- when ? --> an estimated (U.S.) $60 million in a new manufacturing unit in [[Chennai]], India, to support the sales of its products in the [[Indian subcontinent]]. Indian-made products will bear the "Made in India" mark on them. In 2007 the Chennai facility has the target of producing 400,000 desktop PCs, and in the later half of 2007 it will start producing notebook PCs and other products.{{Fact|date=July 2007}}
Dell has a [[Brazil]]ian plant in the city of [[Eldorado do Sul, Brazil|Eldorado do Sul]], close to the state capital [[Porto Alegre]], in the state of [[Rio Grande do Sul]] — that assembles the PowerEdge server line.<ref>[http://www.dell.com/content/topics/global.aspx/corp/pressoffice/en/2001/2001_02_19_pa_000?c=us&l=en&s=corp Dell Starts Manufacturing Servers in Brazil<!-- Bot generated title -->]</ref>
== Technical support ==
<!--specific criticism removed, and some content moved to the criticism section below, where appropriate - do not re-add here. -->
=== Support-levels ===
Dell routes technical support queries according to component-type and to the level of support purchased. Dell Inc brands its [[service agreement]]s at five levels for their business customers:<ref>
[http://www.dell.com/content/topics/global.aspx/services/en/ess_comparisonchart?c=us&cs=555&l=en&s=biz Dell support levels]
</ref>
# Basic support provides business-hours telephone support and next business-day on-site support.
# Silver support provides 24×7 telephone support and 4-hour on-site support after telephone-based troubleshooting.
# Gold support provides additional benefits over and above Silver support, including: customer-declared severity; priority access to support; expedited escalation of support; 4-hour on-site support in parallel with telephone-support.
# Platinum Plus support provides additional benefits to Gold Support, including: performance benchmarking; real-time tracking; custom planning and reporting; a dedicated technical account-manager.
# 2-hour on-site support, offered in some cities: mostly limited to major metropolitan areas.
Dell's Consumer division offers 24x7 phone based and online troubleshooting rather than only during business hours. Gold Technical support is not offered for customers purchasing through the consumer department, and neither is Same-Day Onsite response.
On [[4 February]] 2008 Dell launched a revamped services-and-support scheme for [[business]]es named "ProSupport", offering customers more options to tailor services to fit their needs. Rather than take a one-size-fits-all approach, Dell has put together packages of options for each category of its customers: [[Small and medium enterprise|small and medium-sized businesse]]s, large businesses, government, education, and health-care- and life-sciences.
Dell now offers separate support options for IT staff and for non-IT professionals. For the latter, the company offers "how-to" support for software applications, such as [[Microsoft Office]]. Dell also offers collaborative support with many third-party software vendors. For IT departments, Dell offers "fast-track dispatch" of parts and labor and access to a crisis-center to handle major outages, virus-attacks, or problems caused by natural disasters.
Besides offering response-options for handling problems, Dell has launched "Proactive Maintenance", which offers assessment and recommendations for updating drivers and firmware and for the application of customer-approved patches and system-updates. Dell also offers assessment-services for [[storage area network]]s, as well as for Dell's computing hardware.
The new offerings replace Dell's tiered services-structure in which customers could choose from a variety of service levels, such as platinum, gold, or silver. The latest system takes a more customizable approach to support.
=== Service-tags ===
Dell associates a ''Service Tag'', a unique alpha-numeric identifier, with most of its products, which resembles a [[serial number]]. The Service Tag number, represented in [[base 36]], has a length of five or seven characters. Software can read the Service Tag in a computer's [[Desktop Management Interface|DMI]] table. Monitors bought as part of a computer system get support via the Service Tag of the computer. Monitors bought separately get support via the Dell Order Number or via the monitor's serial number.
Dell links its Service Tags to ''Express Service Codes'', usually found together with the service tag on a sticker physically attached to a system. Computer-owners can usually find this tag on the bottom of laptops; or on the side or on the back of the computer tower of desktops. The Express Service Code, a purely numerical conversion of the service tag, serves for use in Dell's [[trunkline]] for routing a customer to the appropriate phone-technician. Dell's technical support for consumers requires the customer to enter in their Express Service Code into their touch-tone phone and if they do not provide it when prompted customers will experience increased hold-time before reaching a support-representative.
=== DellConnect ===
The DellConnect program, a remote-access tool, gives technicians within Dell Support the ability to access customer computers from a remote location for troubleshooting purposes. By using this tool, support technicians can analyze the configuration of a computer system, view and edit its files and software environment, view and comment on the screen, or take control of the computer system (with the customer's approval) to carry out troubleshooting.
As of 2007 Dell Inc replaced its proprietary remote-access tool with the newer [http://www.dellconnect.com DellConnect 2.0] manufactured by [[Citrix Systems|Citrix]] — a Dell-branded [[Citrix Online| GoToAssist]]. After reaching the website, customers simply run this software, which can permit a support technician to view and work on their computer from a remote location; including the ability to reboot the computer remotely and continuing the same session, to share clipboards, and to redirect customers to a specific website.
=== World-wide technical support ===
In the Americas, Dell has [http://www1.ca.dell.com/content/topics/topic.aspx/ca/corporate/pressoffice/en/2005/2005_12_09_ott_000?c=ca&l=en&s=corp Customer Contact Centers] in Central Texas; Salt Lake City, Utah; Nashville, Tennessee; Chesapeake; Twin Falls, Idaho; Oklahoma City, Oklahoma; San Salvador, El Salvador; as well as in Glace Bay, Nova Scotia; Panama City, Panama and Tampa, Florida.
In the Asia-Pacific region Dell provides customer support from Pasay City and Quezon City, Philippines; Penang, Malaysia; and Xiamen and Dalian, China.
In India, Dell has customer support centers in the northern cities of Gurgaon and Mohali; and in the southern cities of Hyderabad and Bangalore.<ref>
http://ipcommunications.tmcnet.com/news/2006/10/06/212847.htm
</ref>
On [[January 31]], 2008 Dell announced that it will be closing its [[call center]] in [[Edmonton]], Alberta effective [[May 2]], 2008, laying off over 900 workers and abandoning the sweetheart-deal it had agreed to with the city of Edmonton. Ottawa is also closing in July 2008, leaving no support centers in Canada.
=== Criticism of support ===
Some criticism targets the Dell technical-support system. In 2006 ''The New York Times'' published a humorous review of the company's situation in an article by David Pogue. Pogue lamented the difficulties customers face when attempting to reach tech-support by phone. "When you are ready to MAKE THE CALL", he wrote, "go to the bathroom, take an aspirin, get a book or crossword, stock up on water and nibbles (preferably ones with high sugar content and no nutritional value; Twinkies are good)".<ref>
[http://www.nytimes.com/2006/02/22/technology/circuits/23POGUE-EMAIL.html How to Survive a Tech Support Call - New York Times<!-- Bot generated title -->]
</ref>
== Commercial aspects ==
=== Traditional business model ===
Traditionally, Dell has sold all its products — whether to [[end user|end-use]] consumers or to corporate customers — using a direct-sales model via the [[Internet]] and the [[telephone]]-network. Dell maintains a negative [[cash conversion cycle]] (CCC) through use of this model: in other words, Dell Inc. receives payment for the products before it has to pay for the materials. Dell also practises [[Just In Time (business)|just-in-time]] (JIT) inventory-management, profiting from its attendant benefits. Dell's JIT approach utilizes the "pull" system by building computers only after customers place orders and by requesting materials from suppliers as needed. In this way Dell mirrors [[Toyota]] by following [[The Toyota Way|Toyota Way]] Principle #3 ("Use 'pull' systems to avoid overproduction"). Since the days of the original dominance of telephone-ordering, the Internet has significantly enhanced Dell’s business model, making it easier for customers and potential customers to contact Dell directly. This model also has enabled Dell to provide very customizable systems at an affordable rate, since Dell's manufacturing arm builds specifically for each customer. Other computer-manufacturers, including [[Gateway, Inc.|Gateway]] and [[Hewlett-Packard]], have attempted to adapt{{Fact|date=July 2007}} similar business-models, but due to timing and/or retail-channel pressures{{Fact|date=July 2007}} they have not achieved the same results as Dell.
A Dell executive writes<ref>http://www.crn.com/hardware/193300259</ref>:
Analysts say : They (Dell) have a negative 45 days CCC, which means that their sales are converted in hard cash 45 days BEFORE the sale.
I say : They have a negative 45 days CCC, which means that their sales are converted in hard cash 45 days BEFORE Dell needs to pay for purchase invoices to vendors.
Dell has also sold at retail, as explained in the [[Dell#Marketing |"Marketing" section of this article]].
=== Organization ===
A [[board of directors]] of nine people runs the company. [[Michael Dell]], the founder of the company, serves on the board. Other board members include [[Donald J. Carty|Don Carty]], [[William H. Gray (congressman)|William Gray]], [[Judy Lewent]], [[Klaus Luft]], [[Alex J. Mandl| Alex Mandl]], [[Michael A. Miles]], and [[Sam Nunn]]. [[Shareholder]]s elect the nine board members at [[meeting]]s, 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 which have 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 nomination of the board); and the Antitrust Compliance Committee, which attempts to prevent company practices from violating [[antitrust]] laws.
The corporate structure and management of Dell extends beyond the board of directors. The Dell Global Executive Management Committee sets the strategic direction for how the corporation keeps customers at the forefront, from designing and manufacturing computer systems to offering products that meet customers' requirements to providing sufficient service and support. Dell has regional senior vice presidents for countries other than the United States, including David Marmonti for [[Europe, the Middle East and Africa|EMEA]] and Stephen J. Felice for [[Asia]]/[[Japan]]. [[As of 2007]], other officers include Martin Garvin (senior vice president for worldwide procurement) and [[Susan Sheskey|Susan E. Sheskey]] (vice president and [[chief information officer]]).
=== Marketing ===
Dell [[advertisement]]s have appeared in several types of [[Mass media|media]] including [[television]], the [[Internet]], [[magazines]], [[Mail-order catalog|catalogs]] and [[newspapers]]. Some of Dell Inc's marketing strategies include lowering prices at all times of the year, offering free bonus products (such as Dell printers), and offering free shipping in order to encourage more sales and to stave off competitors. In 2006, Dell [http://www.businessweek.com/technology/content/feb2006/tc20060223_710372.htm?chan=search cut its prices] in an effort to maintain its 19.2% market share. However, 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]].<ref>[http://www.dell.com/content/topics/global.aspx/corp/pressoffice/en/2007/2007_03_20_ndi_000?c=us&l=en&s=corp Michael Dell Sees India Playing a Key Role in the Online World<!-- Bot generated title -->]</ref>
A popular United States television and print ad campaign in the early 2000s featured the actor [[Ben Curtis (actor)|Ben Curtis]] playing the part of "Steven", a lightly mischievous blond-haired kid 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 [[intern]]s at Dell headquarters (with Curtis' character appearing in a small cameo at the end of one of the first commercials in this particular campaign).
A Dell advertising campaign for the XPS line of gaming computers featured in print in the September 2006 issue of [[Wired Magazine]]. It used as a [[tagline]] the common term in [[Internet]] and [[gamer]] slang: "FTW", meaning "For The Win". However, Dell Inc. soon dropped the campaign.
In the [[first-person shooter]] game [[F.E.A.R. Extraction Point]], several computers visible on desks within the game have recognizable Dell XPS model characteristics, sometimes even including the Dell logo on the monitors.
In 2007 Dell switched advertising agencies in the US from [[BBDO]] to [[Mother (disambiguation)|Mother]].{{Fact|date=August 2007}} In July 2007, Dell released new advertising created by Mother to support the Inspiron and XPS lines. The ads featured music from the [[The Flaming Lips|Flaming Lips]] and [[Devo]] who re-formed especially to record the song in the ad "Work it Out".
===Criticisms of Dell's Laptop Security Marketing===
Recently, Dell has been receiving a lot of press coverage over its claim of having the world's most secure notebooks, specifically, its [[Latitude D630]] and [[Latitude D830]]. <ref>[http://www.vnunet.com/vnunet/news/2220173/dell-scolded-laptop-ads Dell Scolded for Laptop Ads]</ref>
<ref>[http://digitaldaily.allthingsd.com/20080623/dont-worry-dell-your-laptops-are-still-the-worlds-ugliest/ Dell's Claim as World's Most Secure Commercial Laptops?]</ref>
<ref>[http://www.nadreview.org/DocView.asp?PageContext=2327827901626329766&SessionID=1398619&DocumentID=6853 National Advertising Division News - Dell, Lenovo Participate in NAD Forum </ref>
According to a National Advertising Division report released in late June 2008, Dell did not have enough evidence to support its claim as maker of the "world's most secure laptops" <ref>[http://www.dell.com/content/topics/global.aspx/corp/pressoffice/en/2007/2007_09_13_rr_000?c=us&l=en&s=corp Dell Delivers the World's Most Secure Commercial Laptops </ref> within it's marketing campaign. [[Lenovo]] filed the complaint to NAD accusing Dell of making unverified claims. <ref>[http://www.nadreview.org/DocView.asp?PageContext=2327827901626329766&SessionID=1398619&DocumentID=6853 National Advertising Division News - Dell, Lenovo Participate in NAD Forum </ref>
Most of the criticism made by NAD is around [[data encryption]], both [[disk encryption software]] and [[disk encryption hardware]], used in Dell's commercial notebooks. Dell uses [[hardware-based full disk encryption]] and [[software-based full disk encryption]] from third party vendors such as [[Seagate Technology]] <ref>[http://www.nadreview.org/DocView.asp?PageContext=2327827901626329766&SessionID=1398619&DocumentID=6853 National Advertising Division News - Dell, Lenovo Participate in NAD Forum </ref>
"Although NAD determined that the advertiser could truthfully advertise its position as the first in the industry to combine these particular third-party components in creating secure systems for large businesses, NAD observed the distinction between the security provided to the individual computers and the security provided to a large network of computers."
"Since not all of the components of the [[FDE]] [[Encryption]] Solution are equally relevant for all sizes of business, NAD recommended the advertiser make this distinction to the extent it intends to make broad security claims."
"On the basis of the evidence in the record, NAD determined that advertiser demonstrated that it offered features of computer security that were both unique and meaningful to consumers." Laptops with [[full disk encryption]] are expected to have [[data-at-rest]] (DAR) protection, but still can be vulnerable to [[cold boot attack]], a type of [[side channel attack]], which takes advantage of [[data remanence]] <ref name="ColdBoot">{{cite paper|url=http://citp.princeton.edu/memory/|title=Lest We Remember: Cold Boot Attacks on Encryption Keys|author=J. Alex Halderman, [[Seth Schoen|Seth D. Schoen]], Nadia Heninger, William Clarkson, William Paul, Joseph A. Calandrino, Ariel J. Feldman, [[Jacob Appelbaum]], and [[Edward Felten|Edward W. Felten]]|publisher=[[Princeton University]]|date=2008-02-21|accessdate=2008-02-22}}</ref> <ref>{{cite news|url=http://secude.com/htm/801/en/White_Paper%3A_Cold_Boot_Attacks.htm|title=Don't Panic - Cold Boot Reality Check|publisher=[[Secude]]|date=2008-02-21|accessdate=2008-02-22}}(registration required)</ref>
"However, it also determined that the broad claim 'World’s Most Secure' was not adequately supported and was appropriately discontinued."<ref>[http://www.nadreview.org/DocView.asp?PageContext=2327827901626329766&SessionID=1398619&DocumentID=6853 National Advertising Division News - Dell, Lenovo Participate in NAD Forum </ref>
Dell voluntarily discontinued the "world's most secured laptops" advertisement after the announcement of the NAD investigation.
Dell's original claim <ref> [http://www.dell.com/content/topics/global.aspx/corp/pressoffice/en/2007/2007_09_13_rr_000?c=us&l=en&s=corp Dell Delivers the World's Most Secure Commercial Laptops </ref> is: "The industry-first solution delivers improved performance versus [[software-based encryption]] and [[automated compliance]] reports so customers are confident that [[encryption]] is enabled." "'Dell is at the forefront of laptop security because it ranks as a top concern for customers in an environment where more data is produced by an increasingly mobile work force,' said Margaret Franco, director, Dell Product Group. 'The industry-first solution we’re announcing today adds to our multi-pronged approach to security that delivers an ironclad assurance of protection.'”
==== Dell kiosks ====
[[Image:Chermside dell kiosk.JPG|thumb|Dell Direct Store, Brisbane, Queensland]]
Starting in 2002, Dell opened [[kiosk]] locations in [[shopping mall]]s across the United States in order to give personal service to customers who preferred this method of shopping to using the Internet or the telephone-system. Despite the added expense, prices at the kiosks match or beat prices available through other retail channels. Starting in 2005, Dell expanded [[kiosk]] locations to include [[shopping malls]] across [http://www.dell.com.au/delldirectstore Australia], [http://www.dell.ca/delldirectstore Canada], [http://www1.ap.dell.com/content/topics/topic.aspx/ap/topics/main/en/direct_kiosk?c=sg&l=en&s=dhs Singapore] and [[Hong Kong]].
On [[January 30]] 2008 Dell shut down all 140 kiosks in the US due to expansion into retail stores such as [[Wal-Mart]], [[Best Buy]], and [[Staples Inc.|Staples]].
==== Dell stores in the U.S. ====
In [[2006]] Dell Inc. opened one full store, 3,000-square-foot in area, at [[NorthPark Center]] in [[Dallas, Texas]]. It operates the 3,000-square-foot retail outlet seven days a week to display about 36 models, including PCs and televisions. As at the kiosks, customers can only see demonstration-computers and place orders through agents. Dell then delivers purchased items just as if the customer had placed the order by phone or over the Internet.
Dell Inc planned to use the Dallas store to house about three times as many products as it displayed in more than 160 kiosks in malls and airports.{{Fact|date=August 2007}} In addition to showcasing products, the stores also support on-site warranties and non-warranty service ("Dell on Call"). Services offered include repairing computer video-cards and removing spyware from hard drives.
On Valentine's Day, February14, 2008, Dell closed the Service Center in its Dallas NorthPark store, and laid off the entire technical staff.
==== Dell Partner Program ====
In late 2007 Dell Inc announced{{Fact|date=February 2008}} that it planned to expand its program to [[value-added reseller]]s (VARs), giving it the official name of "Dell Partner Direct" and a new website [http://partner.dell.com]. Dell Inc realized{{Fact|date=February 2008}} that this program, once a small factor in Dell Inc sales, had become a growing sector of its business and it desired{{Fact|date=February 2008}} to leverage this growing outlet for its products. It promised VARs who joined this program increased discounts on product and the ability to use the Dell name and logo in their marketing efforts. [[ConnectU]] became an early member{{Fact|date=February 2008}} of the program.
The overall success of this program — as a new development for Dell Inc — remains unclear{{Fact|date=February 2008}}.
==== Retail in the U.S. ====
In the early 1990s, Dell also 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]]. 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 Inc.|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.
==== Retail in Canada ====
[[As of 2008|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 sub-set of Dell products, such as certain desktops, laptops and monitors.
==== Direct retail in Eastern Europe ====
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 April 2007, Dell opened a retail store in [[Budapest]]. In October of the same year, Dell opened a retail store in [[Moscow]].
==== Retail in the UK ====
Since December 2007 [[HMV Group plc|HMV]]'s flagship [[Trocadero (London)|Trocadero]] store has sold Dell XPS PCs. From January 2008 the UK stores of [[DSG International (retailer)|DSGi]] have sold Dell products (in particular, through [[Currys]] and [[PC World (retailer)|PC World]] stores). As of 2008, the large supermarket-chain [[Tesco]] has sold Dell laptops and desktops in stores throughout the UK.
==== Retail in Australia ====
In May 2008, Dell reached an agreement with office supply chain, [[Officeworks]], 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.
=== Competition ===
Dell's major competitors include [[Apple Inc.|Apple]], [[Hewlett-Packard Company|Hewlett-Packard]] (HP), [[Sun Microsystems]], [[Gateway, Inc.|Gateway]], [[Lenovo Group|Lenovo]], [[Sony]], [[Acer Inc.|Acer]], [[Toshiba]] and [[Asus]]. Dell and its subsidiary, [[Alienware]], compete in the enthusiast market against [[Falcon Northwest]], [[Voodoo PC]] (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 [http://www.boston.com/news/local/massachusetts/articles/2006/07/19/pc_market_called_healthy_despite_weak_demand_in_europe market], compared to HP 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 [[as of 2006|in late 2006]] lost its lead in the PC-business to Hewlett-Packard. Both [[Gartner]] and [[International Data Corporation|IDC]] estimated that in the third quarter of 2006, HP shipped [http://www.forbes.com/2006/10/19/dell-computer-earnings-markets-equity-cx_mk_1019markets07.html?partner=yahootix more units] worldwide 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 [http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070117006106&newsLang=en 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 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 Corporation|EMC]] and [[IBM]].<ref>
[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 World News, Business News, Breaking US & International News | Reuters.com<!-- Bot generated title -->]
</ref>
== Environmental record ==
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.<ref>[http://www.socialfunds.com/news/article.cgi/1421.html Dell First US Computer Company to Commit to a Global Recycling Goal<!-- Bot generated title -->]
</ref>
On [[February 6]], 2007, the National Recycling Coalition awarded Dell its "Recycling Works" award for efforts to promote producer responsibility.<ref name="National Recycling Coalition">
http://www.nrc-recycle.org/recyclingworkswinners.aspx - National Recycling Coalition
</ref>
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.<ref>
http://biz.yahoo.com/ap/070719/tx_dell_recycling.html?.v=1
</ref>
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.<ref name="Dell Inc."> 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.
</ref>
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.
== Lawsuits and other legal action ==
* In 2005, Dell began the construction of a facility in [[Winston-Salem, North Carolina|Winston-Salem]], [[North Carolina]].<ref>[http://www.findarticles.com/p/articles/mi_m0EIN/is_2005_Oct_25/ai_n15732802 "Dell Delivers Computer Assembly Plant to North Carolina"], an advisory from Industrialinfo.com</ref> Many claims emerged that Dell had used unfair practices to obtain huge incentives.<ref>http://www.theregister.co.uk/2005/06/23/dell_nc_suit</ref> Dell Inc. fought a lawsuit which the court system later dismissed.<ref>[http://www.newsobserver.com/104/story/438280.html "Dell wins incentives lawsuit"]</ref>
* In October 2005, Dell filed a lawsuit in a Paris court to sue [[Minorca|Menorca]]-based independent website-designer Paul Dell of [http://www.dellimages.com "Dellimages"] for engaging in “parasitism and unfair competition”. This related to his company website "DellWebsites".{{Fact|date=February 2008}}
* On [[January 31]], [[2007]], some shareholders filed a [[lawsuit]] accusing Dell and Intel of conspiring, and accusing Dell executives (including Michael Dell) of options-[[backdating]] and of propped [[financial report]]s.<ref>{{ cite web | url = http://www.betanews.com/article/Inside_the_Dell_Shareholder_Lawsuit_Did_Dell_and_Intel_Conspire/1170465943 | title = Inside the Dell Shareholder Lawsuit: Did Dell and Intel Conspire? }}</ref> Specific allegations claimed that:
** Dell had received kickbacks from Intel to maintain Intel exclusivity
** Dell had used the funds to prop up its sales-figures
** Dell reduced the period and scope of its warranties and cut corners on manufacturing and testing in order to funnel additional funds to sales; causing the stock-price to inflate to around $40 per share
** once stock-prices had peaked, several Dell executives, including Michael Dell, sold massive amounts of their personal stock-holdings to benefit from the artificially inflated stock-price
* On [[February 8]], [[2007]], seven current and former workers at a call-center in [[Roseburg, OR|Roseburg]], [[Oregon]] sued the computer-maker, saying the company worked its [[sales representative|sales rep]]s "off the clock", failed to provide proper rest-breaks and improperly recorded their lunch-periods.<ref>[http://atwork.blogs.oregonlive.com/uploads/487501-dellsuit.pdf OregonLive.com: At Work<!-- Bot generated title -->]</ref> Moves have begun to turn the case into a [[class action]]. Dell suddenly closed down the facility at Roseburg, Oregon on [[August 2]], 2007.<ref>[http://www.oregonnews.com/article/20070803/NEWS/70803011 newsreview.info - Serving Roseburg & Douglas County, Oregon - News<!-- Bot generated title -->]</ref> The facility had consisted of computer and electronics sales-agents and of customer-service representatives.
* In March 2007 an article titled "Computer Giant Faces Consumer Lawsuit Consumers Allege They Didn't Get the Tech Support They Paid For" appeared on an ABC News website.<ref>[http://abcnews.go.com/GMA/Technology/story?id=3179394&page=1 ABC News: Dell Sued Over Shoddy Tech Support<!-- Bot generated title -->]</ref> "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.
* In [[May]] [[2007]], Andrew Cuomo filed a lawsuit against Dell for "false advertising and deceptive business practices, including offering misleading financing, and failing to honor rebates, warranties and service contracts." [http://news.com.com/8301-10784_3-9719804-7.html?part=rss&subj=news&tag=2547-1_3-0-20] Dell spokesman Bob Pearson portrayed the lawsuit as based on only a small portion of Dell's customers and as in no way reflecting the way the company treats its customers. Dell's hardware-warranty contract says that customers must troubleshoot over the phone — including possibly opening the computer — before Dell will send a technical service provider to replace a part. On [[May 27]], 2008, State Supreme Court Justice Joseph Teresi required that Dell clarify its financing and warranty criteria, saying the computer maker engaged in fraud, false advertising, deceptive business and abusive debt-collection practices.<ref>{{cite news |title=NY judge: Dell engaged in fraud, false advertising |url=http://www.reuters.com/article/wtMostRead/idUSN2739846420080527 |publisher=Reuters |date=2008-05-27 |accessdate=2008-05-28 }}</ref> Parties have filed more than 1,000 additional complaints with the attorney general's office since the initial filing of the lawsuit in May 2007.<ref>[http://www.foxnews.com/story/0,2933,359066,00.html Fox News]</ref>
* On December 5, 2007, [[Typhoon Touch Technologies]] filed a lawsuit naming ''Dell inc.'' along with other defendants, alleging patent violations over Dell's use of [[touch screen]] technology.<ref>United States District Court for the Eastern District of Texas, Tyler Division, Captioned Typhoon Touch Technologies, Inc. and Nova Mobility Systems, Inc. v. Motion Computing, Inc. and Dell, Inc., Civil Action No. 6:07cv546. [http://www.secinfo.com/d158sb.t8.htm Online copy of filing]</ref>
== SEC investigation ==
On [[August 17]] [[2007]], the 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.<ref>{{ cite news|first=Joshua|last=Lipton|title=Dell's Investigation Comes To a Close | url = http://www.forbes.com/markets/2007/08/17/dell-computer-investigation-markets-equity-cx_jl_0817markets19.html |work=[[Forbes]]|date=2007-08-17|accessdate=2007-08-19}}</ref> 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.<ref>
{{cite news|first=Damon|last=Darlin|title=Dell Accounting Inquiry Made Formal by S.E.C.
|url=http://www.nytimes.com/2006/11/16/technology/16dell.html?ex=1321333200&en=d4ea7f8f975e4474&ei=5088&partner=rssnyt&emc=rss |work=[[The New York Times]]|date=2006-11-16|accessdate=2007-08-19}}</ref>
== Criticism ==
In the 1990s Dell switched from using primarily [[ATX]] [[motherboard]]s and [[Computer power supply|PSU]] to using boards and power-supplies with mechanically-identical but differently-wired connectors. This meant customers wishing to upgrade their hardware could encounter unforeseen problems. However, company practice in this respect changed in 2003.<ref>[http://www.informit.com/articles/article.aspx?p=339053 InformIT: Dell proprietary (non-standard) ATX design > Dell proprietary (non-standard) ATX design<!-- Bot generated title -->]</ref><ref>
Mueller, Scott. ''Upgrading and Repairing PCs'', 13ed, Indianapolis: Que Publications, 2002, ISBN 0789725428, and subsequent editions
</ref>
In 2005, according to the [[Better Business Bureau]], complaints about Dell more than [http://www.businessweek.com/technology/content/feb2006/tc20060223_710372.htm?chan=search doubled], to 1,533 after earnings grew 52% that year.
Consumer complaints about the quality of customer-service mounted<!-- when ? -->, and in 2006, Dell acknowledged that it had problems with customer-service. Issues included call-transfers<ref>
[http://www.businessweek.com/technology/content/jun2006/tc20060612_046085.htm Dell Spiffs Up Its Service<!-- Bot generated title -->]</ref>
of more than 45% of calls and long wait-times. [http://www.direct2dell.com Dell's blog] detailed the response:<ref>
[http://www.direct2dell.com/one2one/archive/2006/07/13/433.aspx No Magic Wands For Customer Service - Direct2Dell - The Official Dell blog<!-- Bot generated title -->]
</ref>
"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.<ref>[http://money.cnn.com/magazines/fortune/fortune_archive/2006/09/18/8386121/index.htm The challenge ahead for Dell - September 18, 2006<!-- Bot generated title -->]</ref>
In [[May]], [[2008]] the [[New York Supreme Court]] ruled that Dell and Dell Financial Services "engaged in fraud, false advertising, deceptive business practices, and abusive debt collection practices." The relevant lawsuit aimed primarily{{Fact|date=June 2008}} to highlight and seek restitution for a lack of technical support given to customers by Dell. The court plans to hold further proceedings to determine how much money Dell has to pay out to customers and how much profit Dell made unlawfully in New York.<ref> [http://www.oag.state.ny.us/press/2008/may/may27a_08.html ATTORNEY GENERAL’S OFFICE WINS MAJOR SUIT AGAINST DELL], Office of New York State Attorney General Andrew M Cuomo</ref>
== Further reading ==
{{refbegin}}
* [http://www.hoovers.com/dell/--ID__13193--/free-co-factsheet.xhtml Dell Company Information]
* [[Michael Dell]], Catherine Fredman, ''Direct From Dell'', ISBN 0-88730-914-3
* [http://www.time.com/time/business/article/0,8599,1664718,00.html "Dell Inks Computer Deal in China"] on Time.com (a division of ''Time'' Magazine), [[2007-09-24]], retrieved [[2007-10-14]]
* Andy Serwer, ([[November 28]], [[2005]]). ''Dell's Midlife Crisis'', ''[[Fortune (magazine)|Fortune]]'', pages. 63 - 66.
* [http://money.cnn.com/magazines/fortune/mostadmired/industries/industry_114.html Dell as the seventh-most-admired computer company in the USA], [http://money.cnn.com/magazines/fortune/mostadmired/ eighth overall], [http://money.cnn.com/magazines/fortune/globalmostadmired/top50/ and seventh worldwide]. ''[[Fortune (magazine)|Fortune]]'', ''Most Admired Companies 2006''. <!--This doesn't make sense... 8th overall but 7th worldwide?-->
* [http://today.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?view=PR&symbol=DELL.O&storyID=170878+23-May-2006+BW Dell Named Top Computer Hardware Provider for Life Sciences]. ''[[Reuters]]''
* Dell Ottawa references:
** [http://www.newswire.ca/en/releases/archive/December2005/08/c4870.html CNWGroup news website]
** [http://www1.ca.dell.com/content/topics/topic.aspx/global/hybrid/careers/content/4BE7A554-FF0E-4598-AD37-7DBFF92A0D3B?c=ca&l=en&s=corp Dell official website]
** [http://www.ottawabusinessjournal.com/333493270230219.php Ottawa Business Journal]
* ''[[BBC News]]'', [[21 August]] [[2003]], [http://news.bbc.co.uk/1/hi/business/3169407.stm ''Dell makes grab for market share'']
* ''[[USA Today]]'', [[20 January]] [[2001]], [http://www.usatoday.com/money/industries/technology/2003-01-19-dell-cover_x.htm ''Dell business model turns to muscle as rivals struggle'']
* ''[[Ubuntu Forums]]'', [[7 June]] [[2007]], [http://ubuntuforums.org/showthread.php?t=465723&highlight=dellbuntu ''Dell's with Ubuntu called Dellbuntu'']
{{refend}}
== Footnotes ==
<!-- Splitting long URLs in footnotes over 2 columns can scramble the output and make some of it unreadable -->
{{reflist}}
== See also ==
{{portalpar|Texas|Texasflaginstate.PNG}}
{{commonscat|Dell}}
*[[Dell Axim]]
*[[Dell IdeaStorm]]
*[[Dell Inspiron]]
*[[Dell International Services]]
*[[Dell Latitude]]
*[[Dell OptiPlex]]
*[[Dell Vostro]]
*[[Dell XPS]]
*[[Alienware]]
*[[List of computer system manufacturers]]
== External links ==
* [http://www.dell.com/ Dell Inc. Website]
* [http://direct2dell.com/ Dell Corporate blog]
* [http://www.ideastorm.com/ Dell's Idea Storm - Dell clients' think tank]
* [http://arstechnica.com/news.ars/post/20070330-dells-new-love-for-linux-the-proof-is-in-the-penguins.html Dell's love for Linux].
* [http://www.cogmap.com/chart/dell Dell Organization Chart]
{{Dell Inc}}
{{IT giants}}
{{NASDAQ-100}}
{{Austin}}
[[Category:Companies established in 1984]]
[[Category:Companies based in Texas]]
[[Category:Public companies run by founders]]
[[Category:Computer companies of the United States]]
[[Category:Computer hardware companies]]
[[Category:Dell| ]]
[[Category:Electronics companies]]
[[Category:Networking hardware companies]]
[[Category:Round Rock, Texas]]
[[ar:ديل]]
[[bs:Dell]]
[[bg:Dell]]
[[da:Dell]]
[[de:Dell]]
[[es:Dell]]
[[fa:دل (شرکت)]]
[[fr:Dell]]
[[ko:델]]
[[hy:Dell]]
[[id:Dell]]
[[it:Dell]]
[[he:דל]]
[[lb:Dell]]
[[hu:Dell]]
[[nl:Dell]]
[[ja:デル]]
[[no:Dell]]
[[uz:Dell]]
[[pl:Dell]]
[[pt:Dell]]
[[ro:Dell, Inc.]]
[[ru:Dell]]
[[sq:Dell]]
[[simple:Dell]]
[[sl:Dell]]
[[sr:Del (kompanija)]]
[[sh:Del (kompanija)]]
[[fi:Dell]]
[[sv:Dell]]
[[th:เดลล์]]
[[vi:Dell]]
[[tr:Dell]]
[[zh:戴爾]]