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Table of Contents
This Annual report on Form 10-K contains forward-looking statements that are based on the Company's current expectations. Actual results in future
periods may differ materially from those expressed or implied by such forward-looking statements because of a number of risks and uncertainties. For a
discussion of factors affecting the Company's business and prospects, see "Item 1 — Business — Factors Affecting the Company's Business and
Prospects."
PART I
ITEM 1 — BUSINESS
General
Dell Computer Corporation (the "Company") is the world's leading computer systems company and a premier provider of computing products and services. In
fiscal year 2002 the Company's revenue was $31.2 billion. The Company was founded in 1984 by Michael Dell on a simple concept: by selling computer
systems directly to customers, the Company could best understand customer needs and efficiently provide the most effective computing solutions to meet
those needs. The Company's climb to market leadership is the result of a relentless focus on delivering the best customer experience by selling computer
systems and services directly to its customers.
The Company enhances the customer experience by continually striving to introduce efficiencies to its entire business and by rapidly passing those
efficiencies on to its customers. The Company's direct model and its efficient procurement, manufacturing and distribution processes allow the Company to
rapidly pass cost-savings directly to its customers.
The Company's direct model allows the Company to design and customize products and services to meet the specific requirements of its customers. The
DellTM line of high-performance computer systems includes PowerEdgeTM servers, PowerAppTM server appliances, PowerVaultTM storage products,
PowerConnectTM networking products, Dell PrecisionTM workstations, LatitudeTM and InspironTM notebook computers, and OptiPlexTM, DimensionTM and
SmartStepTM desktop computers. The Company also markets and sells Dell/EMC storage products under a long-term strategic relationship with EMC
Corporation announced in the third quarter of fiscal 2002. The Company provides targeted services for consulting, deployment and support, as well as an
extensive selection of peripheral hardware, including handheld products, and computing software. The Company sells its products and services to a full range
of customers, including global enterprises and other large corporations; federal, state and local governments; educational and healthcare institutions; small-to-
medium businesses; and consumers.
The Company is a Delaware corporation that was incorporated in October 1987, succeeding to the business of a predecessor Texas corporation that was
originally incorporated in May 1984. Based in Austin, Texas, the Company conducts operations worldwide through wholly owned subsidiaries. See
"Item 1 — Business — Geographic Areas of Operations." Unless otherwise specified, references herein to the Company are references to the Company and its
consolidated subsidiaries. The Company operates principally in one industry segment.
The Company's common stock, par value $.01 per share, is listed on The Nasdaq National Market under the symbol DELL. See "Item 5 — Market for
Registrant's Common Equity and Related Stockholder Matters — Market Information."
Business Strategy
The Company's business strategy is based upon the direct model. The direct model seeks to deliver a superior customer experience through direct,
comprehensive customer relationships, cooperative research and development with technology partners, use of the Internet, computer systems custom-built to
customer specifications, and service and support programs tailored to specific customer needs.
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