Michael Dell, the founder of Dell, Inc., is one of the ten wealthiest people in the world. As of December 2024, his net worth stood at $130 billion. His life and business success are a powerful testament to achieving wealth and recognition through sheer hard work and determination. Read on to learn about the billionaire’s rise to success at i-houston.
A Curious and Gifted Young Mind
Michael Saul Dell was born on February 23, 1965, into a modest Jewish family in Houston. His mother was a stockbroker and his father was an orthodontist. From a young age, Michael showed extraordinary abilities and curiosity. While other kids his age were playing in sandboxes, he was taking his toys apart to figure out how they worked. The future billionaire eagerly attended Herod Elementary School, driven by a thirst for knowledge. At just eight years old, while his friends were still learning to read, Michael applied to take a high school equivalency exam. Around this time, he also concluded that investments could yield significant future returns, so he invested all his savings and earnings into stocks and precious metals.
The mid-1970s marked a technological boom in the United States, with new inventions and gadgets appearing constantly. This fascinated the already inquisitive young man, who eagerly studied the new products offered by salespeople and stores. Michael bought his first calculator at age seven, an event he later recalled as feeling like science fiction. He cherished it.
He was even more captivated by the Teletype terminal, marveling at the ability to “type at a distance.” He dove headfirst into the world of technology. When the first computer games emerged, Michael, like many boys his age, was hooked. However, he was interested not just in playing the game but in how it was made. So, when his parents gave him his first computer, an Apple II, he didn’t play games on it but instead took it apart to see how it worked.
First Business Ventures
Michael Dell attended Memorial High School in Houston, where he once again stood out from his peers. While his classmates played baseball or American football, he was busy selling subscriptions to the local *Houston Post* newspaper. But the analytically-minded young man didn’t just sell; he researched. He kept a journal of his sales, noting information about who bought a subscription and who refused.
Dell analyzed his findings and discovered that newlywed couples and people who had just moved to Houston were the most likely subscribers. The enterprising young man then gathered contact information for these demographics and sent them direct mail offers. Using this targeted approach, Michael Dell earned $18,000 in a single year.
The following year, with a solid client base already established, he hired several employees for his first company. This time, Michael earned an impressive $200,000. Thanks to his analytical skills and cleverness, he became financially independent before he was even an adult. With his earnings, he bought his first car and, of course, a new computer.
A New Business and an Unfinished Degree
Michael’s parents wanted him to become a doctor and follow the family tradition. To please them, he enrolled as a pre-med student at the University of Texas at Austin in 1983. However, his studies didn’t stop him from continuing his newspaper business. By this time, he had also figured out the inner workings of computers and began building his own. From his university dorm room, Michael launched a computer business called “PC’s Limited.”
He invested a significant portion of the money he had earned from selling newspaper subscriptions. His “dorm room business” initially sold upgrade kits for personal computers. It was an informal, unlicensed operation, so he decided to apply for a vendor contract to supply software to the state of Texas.
However, he still lacked the necessary business licenses. For a while, he continued his underground business from his room, already developing his own version of a computer. When his parents found out about their son’s business, they didn’t try to persuade him to become a doctor. Instead, they invested $300,000 in his venture. With his parents’ blessing and financial support, Michael Dell decided to drop out of college. He was 19 years old.
The Dell Computer Corporation is Born
In January 1984, Michael Dell officially registered his college venture, “PC’s Limited.” He continued to develop and sell software for existing computers, but he had already built the first prototypes of his own machines. He also developed a business model that the company still uses today: the build-to-order approach. He allowed customers to choose the options they wanted in their future computer, and the company would then assemble it. This strategy allowed him to stay closer to customer needs, and buyers received only what they truly wanted without overpaying for unnecessary features or software.
The first computer of his own design was officially released in 1985. It was the rather grandly named “Turbo PC,” which sold for just under $800. It ran on an Intel 8088 processor at a speed of 8 MHz. Michael Dell advertised his computer in most of the region’s industry magazines, and the Turbo PC quickly became popular. Its low price, combined with decent specs and speed for its time, allowed Dell’s new company to earn an astonishing $73 million in its first year of operation.
Rapid Rise to the Global Stage
Business was booming. In 1988, the company expanded, moved into a new office, and changed its name to Dell Computer Corporation. Dell and his team positioned themselves perfectly—they were in the right place at the right time. The founding of Dell Computer Corporation coincided with the beginning of the PC revolution, allowing the company to rapidly increase production while constantly improving its software and hardware capabilities.
In just four years, Michael Dell’s company entered the international market, where its computers quickly found a loyal following. In 1992, *Fortune* magazine included Dell in its list of the world’s 500 largest companies. Dell didn’t stop there, continuing to perfect his creation. In 1996, Dell Computer Corporation became one of the first companies of its kind to sell products online, offering computers through its own website. By the end of the 20th century, Michael Dell’s company had surpassed its fiercest competitor, Compaq, to become the number-one seller of personal computers in the United States.
Dell vs. Microsoft: The Operating System Battle
Emboldened by this massive success, Michael Dell decided to become a true innovator in the computer industry. He aimed to become a fully independent PC manufacturer, which required creating a new operating system. He succeeded, and in 2000, he presented the Linux operating system on his machines. Despite the initial hype and advertising, the new OS couldn’t outperform the familiar Windows. It was rumored that Microsoft pressured Dell to stop selling computers with Linux.
Legal battles involving antitrust claims began. However, despite fines against Microsoft and personal discussions between the leaders, the two tech giants couldn’t reach an agreement. So, Michael Dell came up with a Solomon-like decision: he would sell “clean” computers, and specialists would install whichever operating system the new owner chose.
The Company Today
As of 2024, Michael Dell lives in Austin with his wife and four children, and his net worth exceeds $130 billion. Dell, Inc. has grown to produce a wide range of other technology products. Michael and his wife, Susan, also founded a foundation dedicated to health and education initiatives in the region. Despite fierce competition and past controversies, Dell continues to navigate the market’s challenges and remains a strong force in the world of computer technology. This ensures they will remain a major player in the PC market for a long time to come.