Dell 2008 Annual Report Download - page 30

Table of Contents
increased our global share to 8.7%, up from 7.8% in the previous year, driven by continued success in the global retail channel and a more
diversified product portfolio. This growth was led by our APJ consumer business with a 45% year-over-year increase in revenue.
Fiscal 2008 compared to Fiscal 2007
Americas Commercial — Americas Commercial grew revenue as well as units by 6% in Fiscal 2008, compared to 3% revenue growth on a slight
unit decline in Fiscal 2007. The increase in revenue in Fiscal 2008 resulted from strong sales of mobility products, servers and networking, services,
and software and peripherals, which grew 9%, 8%, 9%, and 13%, respectively, year-over-year. The unit volume increases resulted from growth in
notebooks. In Fiscal 2007, the slowdown of net revenue growth was due to desktop weakness, lower demand, and a significant decline in our Public
business due to weakening sales to federal customers.
EMEA Commercial — For Fiscal 2008, EMEA Commercial represented 22% of our total consolidated net revenue as compared to 21% in Fiscal
2007. EMEA Commercial had 15% year-over-year net revenue growth as a result of unit shipment growth of 12%. Average price per unit increased
2%, which reflects the mix of products sold and a benefit from the strengthening of the Euro and British Pound against the U.S. dollar during Fiscal
2008, which influenced our pricing strategy. The revenue growth was primarily a result of higher demand for mobility products, represented by a
unit shipment increase of 30%. Additionally, revenue grew year-over-year for all product categories within EMEA Commercial, led by growth in
mobility, services, and software & peripherals revenue of 23%, 32%, and 18%, respectively.
APJ Commercial — During Fiscal 2008, APJ Commercial's revenue continued to improve, with 15% revenue growth year-over-year. Consistent
with the EMEA Commercial segment, these increases were mainly a result of strong growth in mobility. Unit sales of mobility products increased
32% in Fiscal 2008 as compared to Fiscal 2007. Sales of mobility products grew due to a shift in customer preference from desktops to notebooks as
well as the strong reception of our VostroTM notebooks. APJ Commercial also reported 21% growth in servers and networking revenue primarily due
to our focus on delivering greater value within customer data centers with our rack optimized server platforms, whose average selling prices are
higher than our tower servers. These increases were partially offset by a decrease in services revenue of 13%.
Global Consumer — Global Consumer revenue and unit volume decreased 6% and 12%, respectively, in Fiscal 2008, compared to revenue and unit
decreases of 5% and 3%, respectively, in Fiscal 2007. Global Consumer revenue declined as compared to Fiscal 2007 primarily due to a 23% decline
in desktop unit volumes. In Fiscal 2008, this segment's average selling price increased 6% year-over-year mainly due to realigning prices and selling
a more profitable product mix. In the fourth quarter of Fiscal 2008, the Global Consumer business began to improve and posted revenue growth of
16% over the fourth quarter of Fiscal 2007, which reflected changes we made to the business to reignite growth, including the introduction of four
notebook families for consumers.
For additional information regarding our reportable segments, see Note 11 of Notes to Consolidated Financial Statements included in "Part II —
Item 8 — Financial Statements and Supplementary Data."
Revenue by Product and Services Categories
The following table summarizes our net revenue by product category:
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:
Mobility $ 18,638 31% 7% $ 17,423 28% 13% $ 15,480 27%
Desktop PCs 17,244 29% (12%) 19,573 32% (1%) 19,815 34%
Software and peripherals 10,603 17% 7% 9,908 16% 10% 9,001 16%
Servers and networking 6,275 10% (3%) 6,474 11% 12% 5,805 10%
Services 5,715 9% 7% 5,320 9% 5% 5,063 9%
Storage 2,626 4% 8% 2,435 4% 8% 2,256 4%
Net revenue $ 61,101 100% (0%) $ 61,133 100% 6% $ 57,420 100%
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