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Apple - What A Difference Eight Years Can Make

conq writes "It's been eight years since Michael Dell was asked after a speech at a Gartner conference in Orlando what he would do if he were in charge of Apple Computer. His answer: Shut the company down and give the money back to shareholders. BusinessWeek in its new Byte of The Apple Blog looks at how the tables have turned since then. For example, over the last four quarters Dell has been coming in with a net profit margin of about 6.5%. Meanwhile Apple just finished its fiscal 2005 with a profit margin just shy of 9.6%."

16 of 580 comments (clear)

  1. Apples to Apples by erick99 · · Score: 5, Funny

    Micheal Dell would have been smarter had he reserved judgement. Arrogance can sure come back 'round and bite you in the ass. In terms of profit margin one has to consider that Dell is bringing in revenue of around 14 billion a quarter versus Apple's 4 billion so I am not sure how to judge the differences in profit margin given the difference in revenue. Dell probably has a great deal more infrastructure. Oh, well. Just saying we should make sure we are comparing Apples to Apples (funny, huh?).

    --
    http://www.busyweather.com/
    1. Re:Apples to Apples by MECC · · Score: 4, Funny

      "cutting costs comes at the expense of things like customer service, R&D"

      Dell does R&D? To them it must mean 'ruin and destroy'. We haven't had a dell server that hasen't had some kind of hardware problem - out of dozens. Our Apple servers haven't had any problem at all.

      I guess by 'shut it down', he meant what would happen if he ran a company that had to make good hardware to stay afloat....

      --
      "We are all geniuses when we dream"
      - E.M. Cioran
    2. Re:Apples to Apples by jcr · · Score: 2, Funny

      Dell does R&D?

      They do, but it tends to go to researching ways to reduce production costs.

      -jcr

      --
      The only title of honor that a tyrant can grant is "Enemy of the State."
  2. Apple is dying! by Generic+Guy · · Score: 5, Funny

    With Dell's recent quarters slipping and Apple's recent quarters showing growth there can only be one conclusion:

    Apple is dying!

    --
    { - Generic Guy - }
    1. Re:Apple is dying! by macrom · · Score: 4, Funny

      Apple is dying!

      Don't you mean beleaguered ?

  3. Re:Profit Margins by 2nd+Post! · · Score: 3, Funny

    You can't conceive that perhaps Apple isn't over-charging, but that Apple offers more value (that is consequently worth more money) than Dell?

    Case in point: A soda costs $0.05 at Taco Bell. It costs you $0.99.

    Yet how much value is there for you in:
    1) Lugging around syrup
    2) CO2 canisters
    3) Mixing equipment

    Myself, I drink water, but the point stands: If Apple offers more value, Apple can effectively price higher and not be over-charging.

    Another example would be the $0.99 burger at Wendy's. In raw part it would cost you only $0.25
    Do you want to lug around a fridge, fresh lettuce, a package of buns, a grill, ground beef, and cheese whenever you feel like eating a burger for lunch?

  4. More importantly... by Winterblink · · Score: 3, Funny

    ... we can also focused on what hasn't changed: Michael Dell is still an asshole.

    --
    "I'm a leaf on the wind. Watch how I soar."
    -Hoban Washburn
    1. Re:More importantly... by spxero · · Score: 1, Funny

      One other thing that hasn't changed: Steve Jobs is still an asshole.

  5. Innovation vs. raw profit (Re:Apples to Apples) by Anonymous Coward · · Score: 2, Funny
    "Had Apple continued [commoditization], they would have ended up like Dell... Instead, they are a vibrant company that has great promise to grow its market share."
    Well, here's the problem. The benefits of small market share, and in fact the entire Apple experience, are intuitive for a certain kind of person. Artists, fashion mavens, leftists, and other creative personalities can sit down with an R&D-heavy business plan and comprehend its sensitive, tasteful aesthetic. It's a rare instinct, this appreciation for beauty and truth; accountants and other such pencil-pushers haven't a prayer.

    In summary, unattractive squares should stick to Linux and Windows. Vertical integration is for different thinkers.
  6. Re:Ha, Ha! by VaderPi · · Score: 2, Funny

    You should be more sensitive. Even bytes get lonely for a little bit.

  7. To hell with Dell by Quattro+Vezina · · Score: 3, Funny

    Anyone still remember all the "to hell with Dell" banners and stuff eight years ago, when Michael Dell first made those comments?

    --
    I support the Center for Consumer Freedom
  8. Dell? Dell? by Darius+Jedburgh · · Score: 2, Funny

    Remind me. Try as I might I can't think of an interesting product from a company called "Dell". Can someone jog my memory.

    1. Re:Dell? Dell? by nuckin+futs · · Score: 2, Funny

      i guess you haven't heard of their iPod line killer :p

    2. Re:Dell? Dell? by Darius+Jedburgh · · Score: 2, Funny

      What's that pink thing on the right? Looks like some kind of strap on dildo that plays music. OK, I take it back. That's pretty interesting.

  9. Apple Is A Monopoly. by Anonymous Coward · · Score: 1, Funny

    Apple is a MONOPOLY. They've completely taken over their own platform with all their own apps including iChat A/V, iTunes, iMovie, iDVD, iPhoto, Safari, Photobooth, Garageband, iSync, DVD Player, Final Cut Pro, Aperture, iCal, and .Mac and in doing shut most of the market out. It's like they like to make things simple and elegant, but rarely work with others to add the level of compatibility the PC side maintains. Mac are no different then PC's in terms of capabilities, but since nobody wishes to support the Mac platform Apple gets stuck doing it, then it goes down to "Nobody wants to play with us we won't play with them!" Then when they get a good popular thing like the POD, they take SNOB to a whole new level. They won't work with anyone on it. FairPlay had to be reverse engineered, thank God for RealNetworks. I wish somebody would tell Jobs that you catch more fly's with honey then you do with vineger. Qucktime and iTunes for Windows, are just because Apple wants to sell iPod and have the number one most widely used set of codecs and containers.

  10. Re:It's not going to last... by Slackrat · · Score: 2, Funny

    Yet you don't hear people bitching about the price of BMWs.

    That's because it's hard to hear much of anything over death rattle of my Volvo station-wagon.