Dell 2004 Annual Report Download - page 24

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Table of Contents
year-over-year Clariion revenue growth of 41% during fiscal 2005. However, total external storage revenue growth of 16% during fiscal 2005
was lower than fiscal 2004 growth of 58%. The higher growth rate during fiscal 2004 was due, in part, to the relatively low base of storage
revenue in fiscal 2003. In addition, the fiscal 2005 growth rate declined due to a planned product shift associated with Dell's increased focus on
scaling its mid-range SAN business. This product shift included the launch of the Dell/ EMC AX100 storage array during the second quarter of
fiscal 2005 to meet demand for smaller business enterprises.
In client systems, Dell continues to capitalize on the growth of mobile computing with notebooks producing net unit growth in excess of 30%
during both fiscal 2005 and 2004. This net unit growth was partially offset by a 9% decline in average revenue per-unit sold during fiscal 2005,
producing net revenue growth for notebooks of 24% in this highly competitive space. During fiscal 2004, average revenue per-unit sold for
notebooks decreased by 13%. Dell's notebook products continue to carry higher growth rates than desktops as consumer trends continue to
shift more toward mobile computing. Dell's desktop product group produced net unit and revenue growth of 17% during fiscal 2005. During
fiscal 2004, desktops delivered net unit and revenue growth of 23% and 11%, respectively.
Dell continues to expand its service offerings with revenue growth for enhanced services of 35% and 37% during fiscal 2005 and 2004,
respectively. In addition, software and peripherals, which includes Dell's printing and imaging business that was launched in early fiscal 2004,
continued to contribute to Dell's core business with fiscal 2005 and 2004 revenue growth of 35% and 27%, respectively. The growth of Dell's
printing and imaging business has been particularly strong with over five million Dell-branded printers shipped during fiscal 2005.
The following table summarizes Dell's net revenue and annual share of personal computer sales by reportable segment for each of the past
three fiscal years:
Fiscal Year Ended
January 28, January 30, January 31,
2005 Change 2004 Change 2003
(dollars in millions)
Net Revenue:
Americas:
Business $ 25,339 16% $ 21,888 13% $ 19,394
U.S. Consumer 7,601 13% 6,715 19% 5,653
Total Americas 32,940 15% 28,603 14% 25,047
Europe 10,787 27% 8,495 23% 6,912
Asia Pacific-Japan 5,478 26% 4,346 26% 3,445
Total net revenue $ 49,205 19% $ 41,444 17% $ 35,404
Annual Share of Personal Computer Sales(a):
Americas 29.1% 1.4 27.7% 2.9 24.8%
Europe 11.7% 1.2 10.5% 0.9 9.6%
Asia Pacific-Japan 8.3% 1.1 7.2% 1.4 5.8%
Worldwide 17.8% 1.1 16.7% 1.7 15.0%
(a) Represents personal computer units for the full calendar year and is based upon information provided by IDC.
Americas — Dell increased its number one share position in personal computers sales in the Americas region by 1.4 percentage points to
29.1% during calendar 2004. Net unit growth was 17% 21