Dell 2007 Annual Report Download - page 6

Table of Contents
• We offer customers choice. Customers can purchase systems and services from Dell via telephone, at a growing number of retail
stores, and through our website, www.dell.com, where they may review, configure, and price systems within our entire product line;
order systems online; and track orders from manufacturing through shipping. Customers may offer suggestions for current and future
Dell products and services through an interactive portion of our website called Dell IdeaStorm. Commercial customers also can
interact with dedicated account teams. We plan to continue to expand our recently launched indirect initiative by adding new
distribution channels to reach additional consumers and small businesses through retail partners and value-added resellers globally.
• Customers can purchase custom-built products and custom-tailored services. Historically our flexible, build-to-order manufacturing
process enabled us to turn over inventory quickly, thereby reducing inventory levels, and rapidly bring the latest technology to our
customers. The global IT industry and our competition have evolved, and we are continuing to expand our utilization of original
design manufacturers, manufacturing outsourcing relationships, and new distribution strategies to better meet customer needs and
reduce product cycle times. Our goal is to introduce the latest relevant technology more quickly and to rapidly pass on component
cost savings to a broader set of our customers worldwide.
• We are committed to being environmentally responsible in all areas of our business. We have built environmental consideration into
every stage of the Dell product life cycle — from developing and designing energy-efficient products, to reducing the footprint of our
manufacturing and operations, to customer use and product recovery.
Product Development
We focus on developing standards-based technologies that incorporate highly desirable features and capabilities at competitive prices.
We employ a collaborative approach to product design and development, where our engineers, with direct customer input, design
innovative solutions and work with a global network of technology companies to architect new system designs, influence the direction of
future development, and integrate new technologies into our products. Through this collaborative, customer-focused approach, we strive
to deliver new and relevant products and services to the market quickly and efficiently. Our research, development, and engineering
expenses were $693 million for Fiscal 2008, $498 million for Fiscal 2007, and $458 million for Fiscal 2006, including in-process
research and development of $83 million related to acquisitions in Fiscal 2008.
Products and Services
We design, develop, manufacture, market, sell, and support a wide range of products that in many cases are customized to individual
customer requirements. Our product categories include desktop PCs, servers and networking products, storage, mobility products, and
software and peripherals. In addition, we offer a wide range of services. See "Part II — Item 7 — Management's Discussion and Analysis
of Financial Condition and Results of Operations — Revenue by Product and Service Categories" and Note 11 of Notes to Consolidated
Financial Statements included in "Part II — Item 8 — Financial Statements and Supplementary Data."
• Desktop PCs — The XPSTM and Alienware lines are targeted at customers seeking the best experiences and designs available, from
multimedia capability to the highest gaming performance. The OptiPlexTM line is designed to help business, government, and
institutional customers manage their total cost of ownership by offering a portfolio of secure, manageable, and stable lifecycle
products. The InspironTM line of desktop computers is designed for mainstream PC users requiring the latest features for their
productivity and entertainment needs. In July 2007, we introduced the VostroTM line, which is designed to provide technology and
services to suit the specific needs of small businesses.
Dell PrecisionTM desktop workstations are intended for professional users who demand exceptional performance from hardware
platforms optimized and certified to run sophisticated applications, such as those needed for three-dimensional computer-aided
design, digital content creation, geographic information systems, computer animation, software development, computer-aided
engineering, game development, and financial analysis.
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