Dell 2003 Annual Report Download - page 5

Table of Contents
achieve faster inventory turnover and reduced inventory levels. This allows Dell to rapidly incorporate new technologies and components into its product
offerings and to rapidly pass on component cost savings directly to its customers.
• Dell is the low-cost leader. Dell's highly efficient supply chain management and manufacturing organization, efficient direct-to-customer model, and
concentration on standards-based technologies allow Dell to maintain the lowest cost structure in the industry and pass on those savings to its customers.
Additionally, Dell's focus on cost control during fiscal 2004 resulted in the lowest operating expense (measured as a percent of net revenue) in Dell's history
and the lowest among its major competitors during the year. Dell's relentless focus on reducing its costs allows it to consistently provide customers with a
superior value.
• Dell provides a single point of accountability for its customers. Dell recognizes that as technology needs become more complex, it becomes more
challenging for customers to efficiently address their computing needs. Dell therefore strives to be the single point of accountability for customers with
complex technological challenges. Dell offers an array of services designed to provide customers the ability to maximize system performance, efficiency,
and return on investment.
• Standards-based technologies deliver the best value to customers. Dell believes that standards-based technologies are critical to providing customers with
relevant, high-value products and services. Focusing on standards gives customers the benefit of extensive research and development from Dell and its entire
supply chain, rather than a single company. Unlike proprietary technologies, standards provide customers with flexibility and choice while allowing their
purchasing decisions to be based on performance, cost, and customer service.
Products
Dell designs, develops, manufactures, markets, sells, and supports a wide range of computer systems that are customized to customer requirements. These
include enterprise systems (servers, storage, networking products, and workstations), client systems (notebook and desktop computer systems), printing and
imaging systems, and software and peripherals.
• Servers. Dell's standards-based PowerEdgeTM line of servers is designed to provide customers affordable performance, reliability, and scalability. Options
include high performance rack and tower servers for enterprise customers and aggressively priced tower and appliance servers for small organizations and
networks. Dell ranks number one in the U.S. and number two worldwide in shipments of x86 servers (based on standard Intel architecture). During calendar
2003, Dell increased its worldwide market share ranking by 1.8 points and maintained its No. 2 position at 23.4%.
• Storage. Dell/ EMCTM and Dell's PowerVaultTM lines of storage products offer customers a comprehensive portfolio of cost-effective hardware and
software solutions to protect customer data. Dell offers external storage, tape backup products, network attached storage, fibre channel arrays, storage area
networks, and rack solutions. Net revenue for Dell's PowerVault and Dell/ EMC systems grew 58% during fiscal 2004 and continues to become an
increasing portion of Dell's consolidated revenues.
• Networking Products.Dell's PowerConnectTM switches are standards-based network switches that connect computers and servers in small- to medium-sized
networks. PowerConnect products offer customers enterprise-class features and reliability at a low cost. Dell introduced the PowerConnect line of network
switches in the third quarter of fiscal 2002.
• Workstations. Dell offers the Dell PrecisionTM desktop workstation and the Dell Precision mobile workstation. These products are intended for professional
users who demand exceptional performance to run sophisticated applications, such as three-dimensional computer-aided design, digital content creation,
geographic information systems, computer animation, software 2