Dell
Round Rock, Texas, United States
Industry: Technology/Electronics
Region: US 🇺🇸
Year Founded: 1984
IPO Date: 06-22-1988
Market Cap: $76 billion (2021)
Number of Employees: Approx. 165,000 (2021)
Revenue: $94.22 billion (2021)
Net Income: $5.53 billion (2021)
Dell Technologies Inc.
Dell IPO
Dell’s initial public offering (IPO) occurred on June 22, 1988. The company went public on the NASDAQ stock exchange, trading under the ticker symbol “DELL.”
During its IPO, Dell priced its shares at $8.50 per share, raising approximately $30 million in capital for the company.
The IPO marked a significant milestone for Dell, founded by Michael Dell in his dorm room at the University of Texas in 1984. Initially focusing on building and selling custom computers, Dell quickly gained traction in the industry with its direct-to-consumer sales model.
In the years following its IPO, Dell faced various challenges, including intense competition in the PC market and the need to adapt to changing consumer preferences. However, the company persevered and diversified its product offerings to include laptops, servers, storage devices, and other technology solutions.
Dell’s commitment to innovation and customer-centric approach paid off, as the company achieved notable success with its popular Inspiron, Latitude, and XPS product lines.
Additionally, Dell expanded its reach by acquiring companies like EMC Corporation and VMware, strengthening its presence in enterprise solutions and cloud computing.
Since its IPO, Dell has grown into a global technology powerhouse, providing a wide range of hardware, software, and services to consumers, businesses, and governments. The company’s dedication to quality and customer satisfaction has solidified its reputation as a trusted and reliable brand in the technology industry.
Investors who purchased Dell shares at its IPO price and held onto their investments have witnessed substantial returns over the years. Although Dell went private for a period in 2013, it later returned to the public market in 2018, continuing to deliver value and innovation to its shareholders.
Dell IPO Prospectus
A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public. You can find Dell’s Prospectus here.
Company Overview & History
Dell Technologies Inc. is a global technology company that provides a wide range of hardware, software, and services to businesses and individuals.
The company was founded in 1984 by Michael Dell in Austin, Texas. Initially operating as a PC manufacturer, Dell quickly gained recognition for its direct-to-consumer business model, which allowed customers to customize their computer systems according to their needs.
Over the years, Dell has evolved and diversified its offerings to include enterprise solutions, storage, networking, and cybersecurity services. In 2016, Dell acquired EMC Corporation, a leading provider of data storage solutions, and formed Dell Technologies, creating one of the largest privately-controlled technology companies in the world.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2021 | 94.2 | 3.5 | 10.6 | 10.6 |
| 2020 | 92.2 | 4.6 | 10.1 | 10.1 |
| 2019 | 90.6 | 2.4 | 9.5 | 9.5 |
| 2018 | 78.7 | 2.6 | 8.2 | 8.2 |
| 2017 | 61.6 | -3.7 | 4.8 | 4.8 |
| 2016 | 54.9 | 1.6 | 4.2 | 4.2 |
| 2015 | 58.1 | -1.1 | 4.6 | 4.6 |
| 2014 | 56.9 | 0.3 | 4.5 | 4.5 |
| 2013 | 56.9 | 2.4 | 5.1 | 5.1 |
| 2012 | 62.1 | 3.5 | 5.9 | 5.9 |
| 2011 | 61.5 | 2.6 | 5.5 | 5.5 |
| 2010 | 52.9 | 1.4 | 4.3 | 4.3 |
| 2009 | 61.1 | 2.5 | 5.5 | 5.5 |
| 2008 | 61.1 | 2.9 | 5.9 | 5.9 |
| 2007 | 57.4 | 2.6 | 5.3 | 5.3 |
| 2006 | 55.9 | 3.6 | 5.7 | 5.7 |
| 2005 | 49.2 | 3.6 | 5.1 | 5.1 |
| 2004 | 41.4 | 2.7 | 4.2 | 4.2 |
| 2003 | 35.4 | 2.1 | 3.5 | 3.5 |
| 2002 | 31.2 | 1.2 | 2.7 | 2.7 |
| 2001 | 31.9 | 0.6 | 2.3 | 2.3 |
| 2000 | 31.9 | 1.7 | 3.2 | 3.2 |
| 1999 | 25.3 | 1.5 | 2.6 | 2.6 |
| 1998 | 18.2 | 1.0 | 1.9 | 1.9 |
| 1997 | 12.3 | 0.5 | 1.2 | 1.2 |
| 1996 | 7.8 | 0.3 | 0.7 | 0.7 |
| 1995 | 3.5 | 0.1 | 0.3 | 0.3 |
Business Model
Dell Technologies operates through multiple business segments, including Client Solutions Group, Infrastructure Solutions Group, and VMware. The Client Solutions Group focuses on providing hardware solutions such as desktops, laptops, and peripherals to consumers and businesses.
The Infrastructure Solutions Group offers a comprehensive portfolio of infrastructure and cloud solutions, including servers, storage, and networking equipment. VMware, a subsidiary of Dell Technologies, specializes in virtualization software and services.
Dell’s business model emphasizes direct sales and a strong customer focus. The company aims to provide tailored solutions and superior customer support to meet the unique requirements of its diverse client base.
By leveraging its extensive supply chain capabilities and global reach, Dell aims to deliver high-quality products and services efficiently and effectively.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2022 | 94.7 |
| 2021 | 92.2 |
| 2020 | 89.5 |
| 2019 | 80.4 |
| 2018 | 78.7 |
| 2017 | 76.5 |
| 2016 | 74.3 |
| 2015 | 71.9 |
| 2014 | 69.6 |
| 2013 | 67.1 |
| 2012 | 64.7 |
| 2011 | 62.3 |
| 2010 | 59.8 |
| 2009 | 57.4 |
| 2008 | 54.9 |
| 2007 | 52.5 |
| 2006 | 50.1 |
| 2005 | 47.7 |
| 2004 | 45.3 |
| 2003 | 42.9 |
| 2002 | 40.5 |
| 2001 | 38.1 |
| 2000 | 35.7 |
| 1999 | 33.3 |
| 1998 | 30.9 |
| 1997 | 28.5 |
| 1996 | 26.1 |
| 1995 | 23.7 |
| 1994 | 21.3 |
| 1993 | 18.9 |
| 1992 | 16.5 |
| 1991 | 14.1 |
| 1990 | 11.7 |
| 1989 | 9.3 |
| 1988 | 6.9 |
| 1987 | 4.5 |
| 1986 | 2.1 |
| 1985 | 1.7 |
| 1984 | 1.3 |
| 1983 | 0.9 |
| 1982 | 0.5 |
| 1981 | 0.1 |
Risk Factors
As with any company operating in the technology industry, Dell Technologies faces several risk factors that could impact its business and financial performance. These risks include intense competition from other technology companies, rapid technological advancements, changing customer preferences, and global economic conditions.
Additionally, Dell operates in a highly regulated environment and must comply with various laws and regulations related to data privacy, security, and intellectual property.
Market Opportunity
Dell Technologies operates in a dynamic and rapidly evolving technology market. The company has identified several key growth areas, including hybrid cloud, edge computing, data management, and cybersecurity.
By leveraging its expertise in hardware, software, and services, Dell aims to capitalize on these market opportunities and provide innovative solutions that address the evolving needs of its customers.
Competitors
- Hewlett Packard Enterprise Company (HPE)
- Lenovo Group Limited
- International Business Machines Corporation (IBM)
- Cisco Systems, Inc.
- Oracle Corporation
- Microsoft Corporation
- Amazon.com, Inc.
- Samsung Electronics Co., Ltd.
Key/Fun Company Facts
- Dell Technologies was originally known as “PC’s Limited” when it was founded in 1984 by Michael Dell.
- The company adopted the name “Dell Computer Corporation” in 1988 and later changed it to “Dell Inc.” in 2003.
- Dell’s direct-to-consumer business model revolutionized the computer industry by allowing customers to order customized PCs directly from the company.
- Michael Dell, the founder of Dell Technologies, is one of the world’s wealthiest individuals and has been recognized for his contributions to the technology industry.
- Dell Technologies is committed to sustainability and has set ambitious goals to reduce its greenhouse gas emissions, use renewable energy, and promote recycling and circular economy practices.