Apple Should Get Out of Hardware?

SQLGuru writes to mention an analyst recommendation being reported on ZDNet. Despite a BusinessWeek article about Apple's record breaking hardware sales, the folks at Gartner think Apple should get out of the hardware business. Calling for the company to license its hardware to Dell, the analyst company says that gains in Apple's hardware sales are simply not sustainable. From the article: "Apple's margins for its Mac business, currently around 40 percent, are only sustainable because component makers such as Intel choose to prop up the business, Gartner claimed. Given that HP has forced Intel to offer it comparable pricing to Dell, Intel is unlikely to continue to subsidise Apple, the analyst argues. 'As a result of permanently changed market conditions, Intel has been forced to restructure and, in our opinion, cannot go on supporting Apple (or any other customer) indefinitely.'"

Comments

Apple Get Out of Hardware?

[ackthpt]

Seems they tried that before and Apple was in such dire straits Jobs returned to salvage the company and close down the external Mac builders. Let's face it, Apple has survived because the dictatorial nature of product development at Apple means they can establish the trends and bail on those that don't do well, without worrying about maintaining a library of drivers even an orangitan couldn't keep up with (Ook) The PC/Windows path has Microsoft trying to keep an overweight operating system working on a staggering array of hardware combinations. Small wonder very few actually know what the heck is going on with things and most problems are countered with "did you try updating the drivers" or "Have you tried disconecting things until it works" or "You need to do a full re-install"

I wouldn't agree with having Dell make the machines, either. Their quality isn't a shade of what it once was. Dell made their name with competitively priced hardware which was built almost as solidy as IBMs. Now it's all cranked out in China and is as good as anything else cranked out in China, so there's no real advantage over competitors.

Re:Clue

[ericdano]

Being a user of both Windows and Macs, I'd say that I'd always get Apple's hardware. It might be a little more expensive than a build your own machine, but, it will last longer. The PowerMac 9500 I bought in 1996 I just recently retired. But the Windows machine I put together in 1997 got retired in 2000, then then next one was built, and retired in 2003, and the next one was built, and will be retired for a new iMac 20".

The iMac is wonderful machine. Elegant, quiet, fast. Ok, sure, you can't open it up and add in a card. But who does? I can add a firewire/usb2 audio interface, or hard drives.

I dunno. Looking though the last Dell catalog I got, I didn't see anything I'd buy. And the prices aren't all that much greater than Apple's stuff.

Re:Clue

[not-enough-info]

Apple, on the other hand, only has to support a handful of models that they have produced themselves. They literally can have a single room somewhere with an example of every computer that their software needs to support.

And, in fact, they do.
http://developer.apple.com/labs/index.html