Dell 2001 Annual Report Download - page 22

Table of Contents
Net Revenue
The following table summarizes the Company's net revenue by geographic region for each of the past three fiscal years:
Fiscal Year Ended
February 1, Percentage February 2, Percentage January 28,
2002 Change 2001 Change 2000
(dollars in millions)
Net Revenue:
Americas:
Business $ 17,275 (9)% $ 18,969 25% $ 15,160
U.S. Consumer 4,485 15% 3,902 44% 2,719
Total Americas 21,760 (5)% 22,871 28% 17,879
Europe 6,429 — 6,399 14% 5,590
Asia Pacific-Japan 2,979 14% 2,618 46% 1,796
Consolidated net revenue $ 31,168 (2)% $ 31,888 26% $ 25,265
Softness in the global economy and the resulting pressure on capital spending impacted overall industry demand in fiscal 2002. Net unit shipments grew 15%
for fiscal 2002 compared to an industry decline of 5% in calendar year 2001, and grew 29% in fiscal 2001 compared to industry growth of 16% in calendar
year 2000. The Company continues to profitably grow market share while simultaneously growing net unit shipments significantly in excess of the overall
industry growth rate, and during fiscal 2002, became the No. 1 worldwide personal computer systems company.
The Company's enterprise systems, which include servers, storage and networking products, and workstations, continued to build a substantial presence in the
marketplace with unit shipments growing 26% during fiscal 2002. The Company has been focused on extending its capabilities in enterprise systems, which
has resulted in a 44% increase in revenues from these products during fiscal 2002 over fiscal 2000 levels and a No. 1 U.S. and No. 2 worldwide ranking in
server shipments for calendar 2001. To drive growth in storage and additional new products, the Company has announced a long-term strategic alliance with
EMC to co-brand EMC's CLARiiON line of midrange SAN storage systems and has also introduced network switching gear targeted to the needs of small
and medium businesses. In addition, the Company continues the trend of increasing the portion of its research, development and engineering expenses spent
on enterprise systems.
Notebook computer unit shipments increased 20% during fiscal 2002 as the Company ranked No. 1 worldwide and in the U.S. Desktop computer unit
shipments increased 14% in fiscal 2002 as the Company extended its No. 1 ranking in both worldwide and U.S. desktop shipments. Unit shipments grew
during fiscal 2001 across all product lines as well: enterprise systems at 47%, notebooks at 52% and desktops at 22%.
Average revenue per-unit sold in fiscal 2002 decreased 15% compared to fiscal 2001, which was primarily due to aggressive pricing across all product lines as
the Company quickly passed component cost declines through to its customers. Management currently expects that this pricing environment will likely
continue at least through the first half of fiscal 2003 as the personal computer systems industry remains soft and there is continued uncertainty in the overall
economy. Component cost declines had begun to moderate late in fiscal 2002, and consequently, the Company anticipates average revenue per-unit to be
stable entering into fiscal 2003, and any subsequent declines in fiscal 2003 to be more moderate than the prior year. However, the Company will adjust its
pricing as necessary in response to future economic and competitive conditions. Average revenue per unit sold in fiscal 2001 decreased 2% compared to fiscal
2000, which was primarily due to price reductions resulting from component cost declines.
In fiscal 2002, net revenue decreased 2% as compared to fiscal 2001. Net revenue has been adversely affected as growth in net unit shipments has been more
than offset by declines in average
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