Dell, Michael (1964– )

US computer entrepreneur, who founded the PC manufacturing company Dell Computers in 1984 as a student with US$1,000 and the idea to sell custom-built computers directly to the consumer, cutting out the selling stages between. His net worth was estimated by the US financial magazine Forbes at US$17 billion in 2007.

Dell left college when he realized how profitable making PCs from scratch could be. Through Goldman Sachs, Dell made a company private placement in 1987 and an IPO (initial public offering) raising some US$30 million in 1998. When the company made a loss in 1993 Dell began a policy of only assembling PCs once an order was placed, and by 2000, Dell was the largest online seller of computer systems and sales had reached US$27 billion a year.

Dell was born in Austin, Texas, where his mother was a money manager with financial company Paine Webber and his father a doctor. He made his first profit at the age of 12 when he made US$2,000 in commission on his stamp trading auction club; at 16 he made US$16,000 in the summer by selling newspaper subscriptions. With the proceeds he bought an Apple computer. Having taken it apart to see how it worked, he soon realized he could buy components and assemble a whole computer himself for a third of the retail price. By the time he began a pre-med degree at the University of Texas, he was buying chips and other pieces of hardware to customize PCs, first for friends and then for local businesses.

He dropped out of college at the age of 19 when he sold US$180,000 worth of PCs in a month to set up a business. He founded Dell Computers in 1984, selling his product directly to customers at a 15% discount to established brands. When his company reported a loss in 1993, following a price war with rival Compaq and an inventory write-down, Dell appointed a new team of experienced high-tech executives and minimized the inventories – only ordering components or assembling a PC once an order had been confirmed.

In 1992, at the age of 27, Dell was the youngest chief executive officer (CEO) of a company ever to earn a ranking on the Fortune 500. He was ranked one of the ten most powerful people in business by Fortune magazine, and named CEO of the Year by Financial World, Industry Week, and Chief Executive magazines.

In 1999, he wrote Direct From Dell: Strategies That Revolutionized an Industry. He is a member of the board of directors of the US Chamber of Commerce and the Computerworld/Smithsonian Awards; serves on the nominating committee for the National Technology Medal of Honor and the Business Council; and is also a member of the Computer Systems Policy Project, which is an association of CEOs of the top computer companies that supports public policy positions on trade and technology in the USA. Dell also serves on the US president's Council of Advisors on Science and Technology.

In 1999, Dell and his wife set up the Michael and Susan Dell Foundation, which supports and develops programmes related to children's health, education, safety, youth development, and early childhood care.

In March 2004, Dell announced that he would step down as chief executive of Dell Computers at the company's annual meeting in July, when he would be succeeded by the chief operating officer, Kevin Rollins. Dell would remain chairman of the company.

In January 2007, Dell returned to the position of chief executive of Dell Computers.