The invention and the history of the Dell computer is quite interesting. First of all, it was in 1984 when Michael Dell, a student at the University of Texas at Austin, created the company PC’s Limited. He only had a starting capital of $1,000. So what he did was he started working out of his dorm room to build personal computers made from stock components. These computers were to be IBM compatible because that was the standard at that time. If a computer were to function with various pieces of hardware, it needed to be IMB compatible since hardware and software programs were being designed to be IBM compatible.
It is when Michael Dell figured that selling computers directly to customers to determine customer need that he dropped out of college. His family then extended him the $300,000 in expansion capital that he needed to make his business take off.
It was in 1985 that the Turbo PC was developed and it sold for less than $800. It contained an Intel 8088 processor that ran at 8 MHz, which is considerably slower than the computers that we use today. Computers today are running in gigahertz, which are hundreds and even thousands of times faster than the 8 MHz processor that Michael Dell was installing in his computers at the time. But the truth is that this was the best that could be done in 1985. The technology was developing.
But there was an aspect of PC’s Limited that was unique from the rest and continues to be this way today. It is the fact that customers could custom order their computers rather than buy a computer that was already assembled. This allowed individuals to receive computers at lower prices than what they could get with their competitors. This definitely worked because PC’s Limited grossed $73 million in its first year of trading.
The beginning of Dell
It was in 1988 that PC’s Limited became Dell. Prior to that, the company already had 11 international operations occurring, so the company was quite large. There were on site services set up to compensate for the lack of businesses acting as service centers for Dell computers. It was in 1990 that Dell attempted to sell through club houses, but had very little success with this. So it is then that Dell went right back to its direct to customer sales.
In 1996, Dell started selling computers on its website. An individual could go onto the website and custom design their computer so that it would be built to their specifications. From there, it would be shipped to the customer’s home. Financing was made available so that individuals would be able to acquire their computers easily.
In 1999, Dell became the largest personal computer seller when they took over Compaq computers. Their revenue topped $25 billion in 2002. Also in 2002, Dell started selling televisions and other electronic items. They now have Dell brand printers, LCD TVs, and much more. Because of the expansion beyond computers, Dell was changed to Dell Inc. in 2003.
It is amazing that this billion dollar company started in a dorm room with $1000 in starting capital. And Michael Dell has always stood by the principles of letting individuals have the capability to design their own machine. Although there are Dell computers now sold in various retail outlets, a person can still go to the website and design the machine of their dreams. And Dell also offers a lot of assistance for individuals needing help with their computers. They offer on-site services and so much more for the computer user so that they can have the best experience possible.
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