Dell 2008 Annual Report Download - page 29

Table of Contents
The following table summarizes our net revenue by reportable segment for each of the past three fiscal years:
Fiscal Year Ended
January 30, 2009 February 1, 2008 February 2, 2007
% of % of % of
Dollars Revenue % Change Dollars Revenue % Change Dollars Revenue
(in millions, except percentages)
Net revenue:
Americas Commercial $ 28,614 47% (5% ) $ 29,981 49% 6% $ 28,289 49%
EMEA Commercial 13,617 22% 0% 13,607 22% 15% 11,842 21%
APJ Commercial 7,341 12% 2% 7,167 12% 15% 6,223 11%
Global Consumer 11,529 19% 11% 10,378 17% (6% ) 11,066 19%
Net revenue $ 61,101 100% (0% ) $ 61,133 100% 6% $ 57,420 100%
Fiscal 2009 compared to Fiscal 2008
Americas Commercial — Americas Commercial revenue decreased 5% with unit shipments down 7% year-over-year for Fiscal 2009. Revenue
declined across all business sectors within Americas Commercial, except for Latin America and sales to the U.S. Federal government, due to the
decline in IT end-user demand environment. Growth in Latin America was led by Brazil and Argentina which experienced revenue growth of 18%
and 10%, respectively, during Fiscal 2009 as compared to Fiscal 2008. Year-over-year, average selling prices increased 2% as we improved our mix
of products and services during the year. From a product perspective, the revenue decline was primarily due to a decrease in desktop revenue of 14%
on a unit decline of 9%, and a decrease in mobility revenue of 10% on a unit decline of 5%. Average selling prices for desktops and mobility
products both decreased 6% year-over-year as a result of competitive pricing pressures due to the slowdown in IT spending. The decline in desktop
and mobility sales was partially offset by revenue growth in services and software and peripherals, which increased 14% and 6%, respectively,
during Fiscal 2009. We continue to focus on selling solutions to our customers to provide greater value for each dollar of spend and to bolster our
average selling prices.
EMEA Commercial — During Fiscal 2009 EMEA Commercial revenue remained flat year-over-year at $13.6 billion on unit growth of 6%. This
volume growth was mainly the result of a 21% year-over-year increase in mobility shipments. Even though mobility unit shipments increased 21%,
revenue only increased 8% as average selling prices for mobility products declined 10% year-over-year. Due to the decline in IT spending,
downward pricing pressures negatively impacted selling prices for EMEA Commercial's mobility products as well as its desktop and servers and
networking products as average selling prices for all products declined 6% year-over-year. In addition to mobility revenue growth, storage revenue
and software and peripherals revenue grew 20% and 6%, respectively. Offsetting this revenue growth were year-over-year revenue declines of 11%
and 5% for desktops and servers and networking, respectively. During Fiscal 2009, EMEA Commercial experienced challenging demand in Western
Europe; however, there was double digit revenue growth in emerging countries such as the Czech Republic, Poland, and Ukraine. This growth, while
consistent with our overall strategy, continued to drive a mix shift in the EMEA Commercial revenue base, towards products in lower price bands,
which reduced average selling prices.
APJ Commercial — During Fiscal 2009, APJ Commercial experienced a 2% year-over-year increase in revenue on a unit volume increase of 10% as
average revenue per unit declined 6%. Consistent with our other commercial segments, selling prices were strategically reduced to remain
competitive in a slow global economy. Revenue grew across all product lines, year-over-year, except for desktop and servers and networking
products. Revenue from mobility products grew 8% on a unit growth of 21%, and desktop revenue declined 2% on unit growth of 5% due to the
continued shift in customer preference from desktops to notebooks. Storage, services, and software and peripherals revenue increased year-over-year
by 12%, 6%, and 5%, respectively, for Fiscal 2009. From a country perspective, our targeted countries of India, the Philippines, Vietnam, and
Indonesia experienced high double digit revenue growth during the year. During Fiscal 2009, year-over-year revenue growth in China, which is APJ
Commercial's largest country by revenue and is also a target country, slowed significantly as revenue grew only 1% due to a weakening global
economy.
Global Consumer — Global Consumer revenue increased 11% in Fiscal 2009 from Fiscal 2008 on a unit volume increase of 35%. Average revenue
per unit declined 18% due to our participation in a wider distribution of price bands including lower average sales prices realized as we expanded
our presence in retail through an increased number of worldwide retail locations. Retail typically has lower average selling prices than our on-line
and phone direct business. Mobility revenue grew 32% year-over-year on unit growth of 67%, and desktop revenue decreased 17% year-over-year
on a unit decline of 5% as customer preference continued to shift from desktops to notebooks. Also contributing to Global Consumer's revenue
growth was software and peripherals revenue increase of 13% and continued strength in emerging markets. During calendar 2008, we have grown
nearly two times the industry rate of growth on a unit basis and
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