Dell Computer

Essay by PaperNerd ContributorUniversity, Master's October 2001

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Dell ended fiscal 2001 in characteristic fashion: growing faster than the overall industry in every product category, customer segment and geographic region, and doing so more profitably than any other computer-systems company. Familiar, too, was continuation of a long-term trend in customer preference for industry-standard computing products. We think that inclination, which now extends deeply into enterprise-class systems, is a clear vote against the cost and complexity of products based on proprietary technology. And it helps account for our consistent industry-leading performance, and optimism for Dell's future.

牋牋牋牋Last year, we strengthened our industry position en route to becoming No. 1 in global market share for the first time early this year. We shipped our one-millionth PowerEdge server, grew at three times the rate of the server market leader and ranked No. 2 in this strategically important category. And we achieved No. 1 in workstations less than three years after introducing our first Dell Precision products.

Sales of server and storage systems, workstations, notebook computers, services and peripheral products now represent more than half of Dell's revenue and about two-thirds of our profit. But the past year was not typical, for Dell or the industry. Information- technology spending by business and institutional customers following the Y2K slowdown never fully rebounded. Then, industry growth dropped sharply as the broader U.S. economy weakened in the fourth quarter. In a challenging environment, Dell provided a measure of consistency. Our fiscal 2001 unit shipments, revenue, net profit, earnings per share and cash flow - while lower than our original expectations - once again established company records. We ended the year with a renewed commitment to the crisp execution that further distinguishes Dell from competitors. However, as proud as we are of our operating results, they don't describe why more and more customers choose to do...

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