“Michael Dell offered up some harsh advice a decade ago on how to fix struggling Apple Computer, words that now provide an ironic sting for the newly minted CEO of his own slumping company. ‘What would I do? I’d shut it down and give the money back to the shareholders,’ he said at a technology conference in the fall of 1997,” Rachel Beck reports for Associated Press.
Beck reports, “Of course, Apple’s investors and Chief Executive Steve Jobs have gotten the last laugh. Back then, Jobs had just returned to lead the company he had founded, beginning what would become an exceptional transformation. Dell, on the other hand, has watched its business go the other way, and Michael Dell has been recalled to the helm to get it back on track.”
“His successor — and now predecessor — Kevin Rollins had a tough run. Under his tenure, the Round Rock, Texas-based company faced a string of disappointing earnings, while its market share slipped — it lost its No. 1 position in the PC industry to Palo Alto-based Hewlett-Packard last year,” Beck reports.
“Dell also faces an ongoing federal accounting probe and was just named in a class-action lawsuit that alleges its profits were inflated by secret payments of about $1 billion a year from chip maker Intel,” Beck reports. “Since topping $50 a share at the height of the dot-com boom, its stock hasn’t rallied as high since and today trades below $24.”
Beck reports, “With Apple on the upswing, and Dell certainly not, maybe it is time for Jobs to return the favor and give Michael Dell some advice. Chances are it won’t be something he would want to hear.”
Full article here.
[Thanks to MacDailyNews Reader "Dion" for the heads up.]
MacDailyNews Take: On November 10, 1997, Apple’s then-interim CEO Steve Jobs, in response to Dell’s harsh advice spoke in front of an image of Michael Dell’s bulls-eye covered face and stated, “We’re coming after you, you’re in our sights.” He wasn’t kidding.
Dell is a dime-a-dozen PC box assembler. They offer nothing unique or innovative and their price advantage evaporated some time ago. If the company disappeared this afternoon, nobody outside of Dell employees and shareholders would care.
Dell faces investor lawsuit over ‘illegal Intel kickbacks’ – February 02, 2007
Michael Dell is no Steve Jobs – February 02, 2007
BusinessWeek: Welcome back, Michael Dell – don’t get too comfortable – February 01, 2007
Rollins out as beleaguered Dell’s CEO, replaced by Michael Dell immediately – January 31, 2007
Fortune: Michael Dell reiterates he’d love to sell Apple’s Mac OS X if only Jobs would license – January 22, 2007
Total eclipse of Michael Dell goes off as predicted – January 10, 2007
SEC starts formal probe of beleaguered Dell – November 16, 2006
Apple does it again: New Macbook Pros much cheaper than Dell – October 25, 2006
Dell feels the heat from Apple – October 04, 2006
The Motley Fool: ‘Intel to Dell: you guys stink’ – September 28, 2006
Beleaguered Dell’s OS-limited PC sales ‘declining rapidly below expectations’ – analyst – September 21, 2006
Fortune compares Mac vs. Dell: ‘you’ll get more for your money with Apple’ – September 11, 2006
PC box assemblers like Dell and others wish Apple would license Mac OS X – August 31, 2006
AP: Time to think different, Apple Mac beats Dell on price, software compatibility, and more – August 23, 2006
Dell profit falls almost in half; announces informal SEC probe – August 18, 2006
Dell cannot compete with Apple’s new Mac Pro price or feature set – August 15, 2006
Bear Stearns: Apple’s new Mac Pro, Xserve pricing well below comparable Dell systems – August 09, 2006
Dell warns of earnings miss; shares plunge 15% – July 21, 2006
Survey shows big jump in consumer interest in buying Apple Mac; Dell takes steep slide – July 06, 2006
Dell warns 1Q earnings will miss mark; shares tumble – May 08, 2006
Apple passes Dell in market value – May 02, 2006
InformationWeek: Apple Mac run Mac OS X, Windows, and Linux; Dell and HP should be concerned – May 01, 2006
Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006
Apple Mac is #1 in European education market, pushes Dell down into second place – February 03, 2006
Steve Jobs emails Apple team: Michael Dell not the best prognosticator, Apple worth more than Dell – January 16, 2006