Dell 1997 Annual Report Download - page 4

and Supplementary Data" below.
During fiscal 1998, the Company continued to strengthen its presence in the
Asia-Pacific area, where it now has direct-to-the-customer operations in eleven
countries. In addition, since the end of fiscal 1998, the Company has announced
that it will establish a customer center in China to produce, sell and provide
service and technical support for the Company's full range of computer systems
in that market. The Company expects to begin operations from the China Customer
Center later this year. The Company intends to continue to expand its
international activities by increasing its market presence in existing markets
and by entering new markets. International activities are subject to special
risks. See "Item 1 -- Business -- Factors Affecting the Company's Business and
Prospects" below.
PRODUCT PORTFOLIO
The Company offers a wide range of computer systems, including desktops,
notebooks, workstations and network servers, as well as software, peripherals
and service and support programs.
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Desktop Computer Systems -- The Company's OptiPlex(R) line of desktop computer
systems is the Company's mainstream offering for corporate and institutional
customers who require highly reliable systems optimized for use in networked
environments. All systems within the OptiPlex line are "Managed PCs," enabling
remote manageability and control using industry-standard systems management
tools. Some OptiPlex systems are designed for optimal performance with 32-bit
operating systems, and some are available as Net PCs. All OptiPlex systems
utilize the Company's no-tool OptiFrame(TM) chassis, easing serviceability and
upgradability. The OptiFrame chassis is built entirely from recyclable
materials.
The Dell Dimension(R) line of desktop computer systems is designed for small
businesses, workgroups and individuals, who generally demand fast performance
and the latest technology without the need for remote manageability. Some
systems within the Dimension line contain the latest, state-of-the-art
technology and are targeted at technologically sophisticated users, while others
are designed for more value-oriented users.
Notebook Computers -- The Company offers two lines of notebook computer systems,
each designed for targeted customer needs. The Latitude(R) line is targeted at
business customers who require highly reliable and durable systems with maximum
connectivity for use in networked environments. The Inspiron(TM) line, which was
introduced in September 1997, is targeted at technologically sophisticated users
who require the latest technology and high-end multimedia performance.
Workstations -- During fiscal 1998, the Company entered the workstation market
when it began offering the Dell Workstation 400. These Windows NT(R)-based
systems incorporate highly advanced technology and are designed specifically to
run sophisticated, intensive professional applications, such as computer-aided
design, financial service and software development programs.
Network Servers -- The PowerEdge(R) line of network servers consists of systems
that can operate as file servers, database servers, applications servers and
communications/groupware servers in a networked computing environment. PowerEdge
systems can be configured as desired for use in a range of networked
environments, from single workgroups to entire enterprises. The Company also
offers rack-mountable chassis for its network servers and a Scalable Disk System
for increasing network storage capacity.
Software and Accessories -- In addition to its own branded products, the Company
offers a wide range of software, peripherals and other accessories through its
DellWare(R) program. Through its DellPlus software integration program, the
Company can factory-install a customer's proprietary applications or hard-disk
images at the time of system manufacture and deliver other customer-specific
solutions. Through the ReadyWare(R) program, the Company can factory-install
off-the-shelf software applications and interface cards in any computer system
the Company sells.
Service and Support -- The Company enhances its product offerings with a number
of specialized services, including custom hardware and software integration,
leasing and asset management and network installation and support. The Company
offers next-business-day delivery, as well as an extended training and support
program on many of its software offerings. For additional discussion of the
Company's service and support programs, see "Item 1 -- Business -- Service and
Support" below.
MARKETING AND SALES
The Company's customers range from large corporations, government agencies and
medical and educational institutions to small businesses and individuals. The
Company segments its sales and marketing approaches to meet the needs of various
types of customers. No single customer accounted for more than 10% of the
Company's consolidated net sales during any of the last three fiscal years.