Michael Dell began his career as a premed student at the University of Texas at Austin. But he had an idea. He wanted to create a company that specialized in custom-made products. He began selling IBM-compatible units in his dorm and he was able to obtain $1000 from his family. In 1984, he left college to pursue his entrepreneurial dream.
His small business was able to design and build the first fully Dell-designed computer system in just one year. The Turbo PC featured an Intel(r), 8088 processor at 8MHz, and a 10MB hard disk. A new business model was developed that allowed products to be advertised in national computer magazines and sold directly to consumers. Each unit could have custom assemblies according to a variety of options. The young company made $73 million in a year, filling a huge gap in the PC market. The company opened its first overseas subsidiary in the UK in 1987.
One Decade to Number One
The 1990s were a great decade for Dell. They launched their online sales platform, expanded into Asia, and opened a second Texas-based manufacturing facility. In 1997, Dell had shipped its 10 millionth personal computer, just fifteen years after its foundation.
The Dell product line was expanded with new workstations and storage products. This allowed Dell to announce plans to open international manufacturing facilities in Brazil and Ireland. These milestones were achieved by Dell in 1999. This is remarkable for a young company. Number 1 in US PCs, and No. 1 worldwide in PCs designed for medium and large businesses, and No. 1 in worldwide workstation shipments.
The New Millennium
Dell’s net sales reached $40 million per hour in 2000, continuing their success story. In the ensuing decade, Dell added several new products to its network, home office, and business offerings, making it a single source for electronics for consumers.
Dell continues to expand its global reach through multiple acquisitions and forays in new business areas such as enterprise solutions and data centers. Dell Technologies was formed in 2016 when it merged with EMC, a highly successful data storage and enterprise solutions company, to create Dell Technologies. We can help you maintain and repair your device(s), in any way. Contact us today to discuss our business services Dell computers.
The Early Years
When Lenovo was founded in Beijing, China by Liu Chuanzhi (and a group of ten engineers friends), it had a different name. They named their company “New Technology Developer, Inc.” and began to develop business technology. They had already won the highest National Science-Technology Progress Award for China in 1988 for creating a circuit board that enabled IBM-compatible personal computers (IBM-compatible) to process Chinese characters.
They realized they needed a more professional name, and launched their PC in 1990 to great success. This allowed them to concentrate all their efforts on this market.
China’s Growth: 1990-2004
Legend has been working on more computers for the past decade. Legend released the first consumer laptop in 1994 and has dominated more than 40% of the Chinese computer market.
Yuanqing Yang became the CEO in 2000. At 25 years old, he had been with the company for over 25 years. Chuanzhi, the founder of the company, resigned as president to join a board of directors. The company’s DeepComp 1800 was released under Yang. It was the 43rd fastest computer at that time in the world.
The IBM Connection
Legend was enjoying a rapid growth spurt in China, but American computer giant IBM was still developing its personal computers and laptops. Legend started to look beyond China in 2003 and the company decided to change its name to reflect international branding. Welcome to the new era of Lenovo.
To acquire IBM’s computing division, Lenovo paid $1.25billion in 2004. They were suddenly able to leapfrog them to third in the global PC market. This was not without its challenges. Yang was replaced by two Americans as CEO, but he returned to the post in 2009 and has remained there ever since. His extraordinary character as a corporate leader can be seen in his decision to give personal bonuses to employees of the company instead of keeping them.
Lenovo was able to leverage its partnerships with World Expo, the Olympic Games, and became the number one seller of PCs worldwide by 2013. The company sold over 75 million ThinkPads. Although Lenovo has expanded into smartphones and servers, the Think and Idea product lines are still the most well-known and reliable on the market.