How Michael Dell Turned 1000 into a BILLION Dollar Empire
How Michael Dell Turned 1000 into a BILLION Dollar Empire
Transcript
00:00 With the establishment of the Dell Computer Corporation, now known as Dell Inc. in the
00:06 1980s, Michael Dell played a key role in the beginning of the personal computer revolution.
00:13 But, of course, it paid off handsomely, as seen by his personal worth of $53.4 billion
00:21 and his position as CEO of Dell Technologies, which he has held since 2007.
00:28 So today let's have a look at the documentary about Michael Dell, the founder of Dell Technologies.
00:35 Without further ado, let's get into it.
00:38 Early Life
00:39 Michael Dell was born in Houston, Texas on February 23, 1965.
00:46 His mother worked as a stockbroker and his father was an orthodontist.
00:50 Both parents desired that their son pursue a profession in medicine.
00:56 Dell on the other hand, was interested in technology and business from a young age.
01:01 He purchased an early Apple computer when he was 15 years old with the intention of
01:07 disassembling it and learning how it functioned.
01:10 In college, he began constructing computers and selling them directly to customers, focused
01:16 on providing excellent customer service and offering competitive costs.
01:21 Dell began saving money for his stamp collection when he was 12 years old, when he got a job
01:27 washing dishes at a Chinese restaurant.
01:30 A few years later, he honed his ability to sift through data in order to find new clients
01:36 for Houston Post newspaper subscriptions, which paid the high school student $18,000
01:41 in a single year.
01:43 Dell who was 15 years old when he became attracted by the growing world of computers and gadgetry
01:50 purchased an early Apple computer with the sole aim of dissecting it and understanding
01:55 how it worked.
01:57 Thanks to Michael Dell's passion towards computers, we now have the Dell Technologies,
02:03 which is now one of the world's largest personal computer manufacturer.
02:07 Dell discovered the niche that would eventually lead to his success while still in college.
02:13 During this time period, Dell observed that no company had attempted to sell directly
02:18 to customers due to the fact that the PC market was still in its early stages.
02:24 Dell used $1,000 from his savings account to start manufacturing and selling computers
02:30 to people he knew from college, cutting out the middleman and the markups in the process.
02:36 This early step towards the establishment of Dell computers is the reason for Dell's
02:41 current network of $53.4 billion.
02:46 While his emphasis was not just on high-quality machinery, but also on good customer service
02:52 and affordable rates, his competitors did not share this perspective.
02:57 After a short period of time, he had built relationships with clients outside of school,
03:03 and it wasn't long before Dell made the decision to forego education and devote his
03:08 entire time and focus to his company.
03:12 Quite a few numbers were revealed to be quite surprising.
03:15 Dell generated $6 million in revenues in his first full year of business, which was 1984.
03:23 Dell was the first person to do it.
03:26 Dell was worth a billion dollars in the year 2000, and his company had offices in 34 countries
03:32 and a workforce of more than 35,000 individuals at the time of the survey.
03:38 The next year, Dell Computer surpassed Compaq Computer as the world's largest personal
03:44 computer manufacturer.
03:46 In general, Dell has proven to be one of the most lucrative companies on the planet throughout
03:52 its first two decades of operation, outperforming even industry titans such as Walmart and General
03:59 Electric.
04:00 As a result of his success, Michael Dell released a best-selling book about it in 1999, titled
04:07 "Direct from Dell - Strategies that Revolutionized the Industry", which went on to becoming
04:14 a best-selling book.
04:15 Michael Dell feels that "this deal will begin an exciting new chapter for Dell, our
04:21 customers and team members," according to a Reuters News report.
04:26 The company's prospects are still bleak, according to several analysts who believe
04:31 the corporation is facing major issues.
04:34 Over the past few years, Dell has seen its share of the PC market decline, as well as
04:40 growing competition from tablet and smartphone manufacturers.
04:44 However, according to 2021 reports, Dell has approximately 17.6% of the personal computer
04:52 vendor market share.
04:54 This is quite good, because it is 1.2% higher than the 2020's 16.4%.
05:01 Philanthropy
05:03 Michael Dell is well-known for being very private and incredibly cautious, but many
05:08 who know him say that he has gradually emerged from his shell over the years, mostly as a
05:13 result of his marriage to Susan, a Dallas resident whom he married in 1989 and who has
05:20 helped him to do so.
05:22 In addition to their four children, the couple has two stepchildren.
05:26 The Dells have proven a willingness to share their good fortune by banding together to
05:31 accomplish their goals.
05:34 When Michael and Susan Dell got married in 1999, they started the Michael and Susan Dell
05:40 Foundation, a massive private charity that has given millions of dollars to deserving
05:45 projects and people around the world, including tsunami victims in Southern Asia.
05:51 It made a $50 million gift to the University of Texas in 2006, according to the foundation's
05:58 website.
05:59 "A bunch of us sitting around trying to decide what we want to have done with our money once
06:04 we're dead.
06:05 That's not a very sensible thought," he famously said while describing his early excursion
06:11 into philanthropy.
06:12 I quote, "It's time to forget about everything.
06:16 So, while we're still in the building, we'll take care of everything and make certain it's
06:21 done appropriately."
06:23 Dell resigned from his post as CEO of the company in 2004, but he retained his position
06:30 as chairman of the board of directors of the corporation.
06:34 He served on the foundation board of the World Economic Forum as well as the executive committee
06:39 of the International Business Council, among other organizations.
06:44 In addition, he served on the president of the United States Council of Advisors on Science
06:50 and Technology, and he was a member of the governing board of the Indian School of Business
06:55 in Hyderabad.
06:57 Even more, Dell returned as CEO at the request of the board on January 31, 2007.
07:05 Controversy In recent years, though, not everything has
07:09 gone according to plan for Dell or his corporation.
07:13 Dell's poorly constructed computers resulted in the firm incurring a $300 million bill
07:19 to repair the faulty machines, a significant financial setback for the company that resulted
07:25 in Dell losing its dominant position in the computer industry.
07:30 Dell returned to the company as CEO in 2007 in an attempt to remedy the situation, but
07:37 the results have been mixed.
07:38 Poor products continued to plague the company, and despite Dell Computers' efforts to downplay
07:44 the problem, internal papers ultimately proved that staff were well aware of the problems
07:50 affecting millions of the company's computers at the time.
07:54 Dell made news in July 2010 when he agreed to pay more than $100 million in fines and
08:00 penalties in order to resolve charges of accounting fraud filed by the Securities and Exchange
08:06 Commission, or the SEC.
08:09 As alleged by the accusations, Dell Computer artificially inflated its earnings statements
08:15 by including rebates from the semiconductor manufacturer Intel, which Dell received in
08:20 exchange for agreeing not to utilize chips manufactured by advanced micro-devices in
08:27 its PCs and servers.
08:30 Dell Computer Technology was accused of deceiving investors about its true earnings by bloating
08:36 its financial statements, according to authorities.
08:40 Dell declared in February 2013 that he will be taking his firm private once more in an
08:46 effort to aid in the reconstruction of the company he built.
08:51 His company, Dell, even secured an agreement with Silver Lake Partners, a private equity
08:57 firm that specializes in technology and computer software giant Microsoft, to start an acquisition
09:04 of all the company's outstanding shares.
09:07 This transaction is estimated to be worth between $23 billion and more than $24 billion,
09:14 making it one of the most significant buyouts in recent history.
09:18 Overall, there's no doubt that Michael Dell has been well compensated by Dell Technologies,
09:25 and according to 2021 reports, he currently owns 52% of the corporation.
09:32 So there you have it.
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09:41 Until next time.
09:41 [MUSIC PLAYING]
09:44 (upbeat music)