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Mon, Mar 15, 2010 - 10:42 AM EDT — AAPL: 223.034 (-3.566, -1.57%) | NASDAQ: 2360.47 (-7.19, -0.3%)

This is not a joke: Dell hires Rob Enderle to consult on new ‘iPod killer’

Wednesday, July 30, 2008 - 08:48 AM EDT

"In recent months, Dell has been testing a digital music player that could go on sale as early as September, said several Dell officials. Launching the player -- along with an online download service and related software -- would be part of a strategy that Dell Chief Executive Michael Dell hopes will move the company into a broader range of consumer markets than it has served before," Juston Scheck reports for The Wall Street Journal..

"When Dell stopped making music players in 2006, its U.S. market share remained below 3%, estimated analyst Rick Doherty of Envisioneering Group, who follows the MP3 player market," Scheck reports. "This time... instead of simply selling a piece of hardware tied to someone else's music service, as it did in 2003, Dell is working on software for a range of portable PCs that will let users download and organize music and movies from various online sources."

"The music player Dell has been testing -- the product's name couldn't be learned -- features a small navigation screen and basic button controls to scroll through music play lists. It would connect to online music services via a Wi-Fi Internet connection, and Dell executives said they would likely price the model currently being tested at less than $100," Scheck reports.

"Rob Enderle, an industry analyst whom Dell hired to consult on the new entertainment strategy, said he is still discussing with Dell whether profits would come mainly from the subscription service or from devices tied to it," Scheck reports.

"Apple had 71% of the U.S. MP3 player market in the first quarter of 2008, according to industry analyst NPD Group. Apple's closest rival was SanDisk Corp., with 11%. Microsoft, which introduced its Zune music player in 2006, had just 4% of the market," Scheck reports.

"The new plan could strengthen Dell's consumer brand, said Mr. Enderle," Scheck reports. "Dell is tapping ex-Apple expertise to make its foray. Its device is based on software developed at Zing, a company Dell acquired last year and which is headed by an Apple veteran. Mr. Tatelman said Zing software can be used to retrieve and organize online music, movies and photos, and will come pre-installed on a series of new Dell notebook computers and other devices."

Full article here.

[Thanks to MacDailyNews Reader "Macaday" for the heads up.]

MacDailyNews Take: We thought we'd seen pretty much everything. We were wrong. The "Wow" really started as soon as that WSJ headline popped up this morning. When it was first shouted out, ringing through the cavernous halls of the palatial MDN headquarters, it was greeted with a chorus of yeah-rights and then quickly followed by shocked silence as the URL loaded up in Safari on our pristine MacBook Pro screens. Wow.

So, not only is Dell is planning yet another DOA MP3 player they've hired Rob Enderle as a consultant. Rob Enderle, quote whore for hire. Of the Enderle Group, which consists solely of Rob and his wife, Mary. And, you thought the Zune was late to market? Dell's nuts.

Dell shareholders: Be afraid, be very afraid.

We would be remiss if we didn't point out that there is still the possibility that Dell will come to its collective senses, as Scheck points out in the full article that "Mr. Tatelman said he will decide 'in a few weeks' how to proceed with the music player, and that he may decide not to sell it at all."

Even if they don't do it, Dell shareholders should be very afraid that this has come this far, that not only has Rob Enderle been consulted, he's actually been hired, and that Dell has no hope of competing with Apple on the high end and is therefore consigned to pimping their low- or no-margin OS-limited PCs on Wal-Mart shelves, trying to generate more than double Apple's revenue in order to make 3/4 of Apple's profits*.

*Last quarter: Dell posted $16 billion in revenue to make $784 million net quarterly profit. Apple posted $7.46 billion in revenue with $1.07 billion net quarterly profit.

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Jul 30, 08 - 08:50 am Comment from: ChrissyOne

It does NOT get any better than this. >.<

Jul 30, 08 - 08:51 am Comment from: Daner

I wish both Dell and Rob all of the success that they so richly deserve.

Jul 30, 08 - 08:52 am Comment from: ChrissyOne

"the product's name couldn't be learned"

It's the Dell Diddly Doodly. Dell has also hired Ned Flanders as head of marketing.

Jul 30, 08 - 08:53 am Comment from: Dirty Pierre le Punk

This is a smart move on Dell's part. When their new music player starts to bomb, they can consult Rob and he'll tell them how bad the iPod and Apple is and that everything is actually going to be okay.

Jul 30, 08 - 08:55 am Comment from: ChrissyOne

Enderle "...said he is still discussing with Dell whether profits would come mainly from the subscription service or from devices tied to it,"

Subscription Service!!! Subscription Service!!!

Because you know how much money there is in THAT!!!

Jul 30, 08 - 08:56 am Comment from: Gomer37

Ridiculing Dell and Rob Enderle is like telling a bum to "Get a job".

Jul 30, 08 - 08:56 am Comment from: ChrissyOne

"Apple had 71% of the U.S. MP3 player market in the first quarter of 2008, according to industry analyst NPD Group. Apple's closest rival was SanDisk Corp., with 11%. Microsoft, which introduced its Zune music player in 2006, had just 4% of the market," Scheck reports.

Sounds like a Solid Number 2 to me!

Jul 30, 08 - 09:03 am Comment from: zaxxon4

Since they license Microsoft OS's for everything else that needs an OS, do you think they'll license the Zune-OS for their MP3 player?

Jul 30, 08 - 09:05 am Comment from: Radius

This going to be hilarious. I wonder how Rob is going to blame Apple for his, and Dell's, inevitable failure.
Also, isn't it a little late for Dell to be trying to get into the music player game?

Jul 30, 08 - 09:09 am Comment from: Ted

I checked my calendar, as I swore it was April 1 again...

Seems like a great time to roll out a new player and music service combo, based on the amazing suck-sess microsoft has been enjoying with Zune. I'm sure there's great profits to be had taking over low single-digits of the online music world.

Jul 30, 08 - 09:09 am Comment from: ChrissyOne

"When it was first shouted out, ringing through the cavernous halls of the palatial MDN headquarters..."

"...Of the Enderle Group, which consists solely of Rob and his wife, Mary."

^^^^SATIRE^^^^

Jul 30, 08 - 09:11 am Comment from: Fred Mertz

ChrissyOne,

When Dell hires MDN, then you'll have achieved "^^^^SATIRE^^^^."

Jul 30, 08 - 09:11 am Comment from: royboy

I believe I have just travelled back in time: it's April 1 right?

Jul 30, 08 - 09:14 am Comment from: hilken

It seems that Dell has as new strategy lately: (try to)copy everything Apple makes (and fail miserably).

Just look at Dell's website http://www.dell.com

Hey Micheal, Steve called, he want his website layout back!

Jul 30, 08 - 09:14 am Comment from: pastrychef

I hope Dell decides to do it. I want to see them kill off another PMP.

Jul 30, 08 - 09:19 am Comment from: i want my iTele

I want everybody to know that I used my Apple iTele to teleport to Dell's headquarters and checked out the new player. The player I saw had already been slobbered on by Rob. Left me feeling a little sick. I had to get the teleport out of there.

The new player's nothing to brag about.

Jul 30, 08 - 09:19 am Comment from: Demon

Got to love idiots, Let's just copy Apple on the cheap and we'll kill their success. It's too late for Dell to get back into the MP3 Player market. They let their partner Microsoft take the market share they'll need to get their foot in the door. The Zune hasn't put a bent in Apple's market share, it's just slowly taken market share away from Creative, and the no name MP3 Players. If anything the Zune has helped Apple's iPod to gain market share as Zune owners abandon their Zune's for a better music experience with the iPod.
Dell's new Diddy Doodoo will not slow iPod sells it might take 1% or 2% market share from the Zune and could absorb up to 10% of the Zune Customers when Microsoft kills off the Zune later this year or early 2009. Dell will no be looking at high volume sells so their cost per unit will be very high which is what Dell does not do well, they would need to sell iPod numbers to get the cost to a point were the devices were profitable something they just will not be able to do with a Diddy Doodoo basic mp3 player even at less then $100.00.
Dell should just accept that they are a Cheap PC Vendor and just sell iPods to their customers. They'd certainly make their customers happier and it'd be more profitable for Dell then trying to sell their own Diddy Doodoo MP3 Player.

Jul 30, 08 - 09:20 am Comment from: Road Warrior (NLI)

Ah, something zune thang won't understand. Two years on the market and the Zune has 4%....ooooooo I bet SanDisk Corp. is looking in the rear view mirror on that one.

Actually could it be that Michael Dell is not going to sell the company and give the money back to the share holders but drive the company into the ground and give the money to Rob Enderle.

Not a joke? Sure is hilarious.

Jul 30, 08 - 09:20 am Comment from: The Dude

Gomer37,
Good one... because it is so true!

The Dude abides.

Jul 30, 08 - 09:22 am Comment from: Amazin1

Oh wow, hllken is right! Dell copied Apples site layout! Flattery, desperation, lack of innovative thought?

Jul 30, 08 - 09:22 am Comment from: Eric

huh?

Dell? iPod Killer? Rob Enderle?

uhhhh... huh huh...

huh huh ha ha....

HA HA HA HA HA....

HE HE HE HE HE HE...

MWHA HA HA HA HA HA HA HA HA...

HAH HAH HAH HAH HAH HAH HAH HAH HAH....
holy crap... HAH HAH... that is the.... HAH HAH...

HAH HAH HAH HAH HAH....

HAH HAH... funniest.... HAH HAH... HAH HAH...

HAH HAH HAH.... thing... HAH HAH...

HAR HAR HAR HAR.... I've ever... HAH HAH HAR HAR....

HAR HAR... he... he... heard...

MWHA HAH HAH HAH HAH HAH HAH HAH HAH HAH....
OH MY GAWD!!!! HAH HAH HAH HAH...

Apple is.. He He he.... doomed....

MWHAAAAA HAH HAH HAAAAAA HAH HAH....

Poor Steve Jobs... AHHHH HAH HAH....

What will he do now?

MWHAAAAAAA HAH HAH HAH HAH HAH....

AHHHHH HAH HAH HAH HAH HAAAAAAA....

OH man... HAH HAH HAH HAH HAAAAAAA....

...

...

huh? where am I?

I think I passed out...

Where was I?...

Oh yeah...

Dell and Rob Enderle equals iPod Killer....

MWHAAAAAAAA HAHAHAHAHAHA HAAAAAA HAH HAH HAH HAH HAH HAH HAH MWHAAAAAAAA HAHAHAHAHAHA HAAAAAA HAH HAH HAH HAH HAH HAH MWHAAAAAAAA HAHAHAHAHAHA HAAAAAA HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH MWHAAAAAAAA HAHAHAHAHAHA HAAAAAA HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAAAAAAAAAAAAAA HAAAAAAAAAAAAAAHAH HAH HAH HAH HAH HAH HAH HAH HAAAAAAAAAAAAAAHAH HAH HAH HAH HAH HAH HAH HAAAAAAAAAAAAAAMWHAAAAAAAA HAHAHAHAHAHA HAAAAAA HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAH HAAAAAAAAAAAAAA...

Jul 30, 08 - 09:22 am Comment from: dd

What would Mike Dell do? Why, he'd copy Apple in hopes to bring Dell back to some form of profitability. HAHAHAHAHAHAHAHAHAHAHA!!!

Jul 30, 08 - 09:24 am Comment from: ChrissyOne

@ Fred Mertz

When Dell hires MDN, pigs will be commercial airline pilots.

Jul 30, 08 - 09:28 am Comment from: iWill

Morning everyone, what's so funny? I heard a lot of laughing coming from this page.

Jul 30, 08 - 09:29 am Comment from: mike k.

it will have no glass whatsoever and will come equipped with a safety cord which must remain attached at all times to prevent it from becoming a dangerous projectile in case of an earthquake.

Jul 30, 08 - 09:30 am Comment from: Rainer

As if Dell boxes didn't already contain enough junk-software that slows down Vista even more than it already is.
Now, they're installing another crap-let that'll poll the internet and suck-up CPU-time plus memory.
Poor Dell-customers.
People who want to use a software to sync with their MP3-player most likely already have both the software and the player: iTunes + iPod.
You don't need to be an Enderle to come up with that reasoning...

Jul 30, 08 - 09:33 am Comment from: iWill

@ Crissy1
Already happened, remember John Travolta piloting for Quantas?

Jul 30, 08 - 09:34 am Comment from: Dutch

I will laugh when I see the product, if it deserves it. In the meantime we shouldn't underestimate the competition, no matter how ridiculous some of their decisions may look today.

Jul 30, 08 - 09:36 am Comment from: ken1-w

Just add John Dvorak to the team, and Dell is guaranteed to have a winner.

Jul 30, 08 - 09:37 am Comment from: bioness

I thought the iPod is transitioning to the iPhone... or did Rob not get that?

Jul 30, 08 - 09:37 am Comment from: DH

If they plan on competing with Apple, they better have some revolutionary technology. ( I doubt it ).

Dell should stay where they do the best ... low cost computers for folks that buy based solely on price and really don't give a hoot about performance. Can you say " WALMART " ?

It's not like Dell has tons of money that they can piss away ( can you say Microsoft ) ?

Jul 30, 08 - 09:43 am Comment from: John C. Randolph

Gee, I'd just about forgotten about the "Dell Ditty". So, one spectacular failure just isn't enough for them, I guess.

Meanwhile, I'm sure HP and Lenovo are happy to watch a formerly significant competitor waste their time and their dwindling capital on something like this.

-jcr

Jul 30, 08 - 09:45 am Comment from: ChrissyOne

@ iWill

Touché!!!

Jul 30, 08 - 09:46 am Comment from: Famous Grouse

What me, worry? Apple has already moved on to higher end devices that play video, make phone calls, and can run applications. Why not leave the low margin crap to bottom feeders like Dell and Enderle? Not everyone wants to spend more than $59 on a music player, which is about what this will be worth.

Jul 30, 08 - 09:57 am Comment from: Follower

Maybe ex-"Zune Guy" can embrace these, and get a tattoo of Rob's face.

Jul 30, 08 - 10:00 am Comment from: steve516

I love how Dell has double the revenue at 16 billion, but only 75% the profit of Apple. That's an amazing business model. Work twice as hard for less money!

So, we can assume the same strategy with the new player... sell lots of them for $100, but make no profit on them!

Jul 30, 08 - 10:02 am Comment from: -hh

Funny part is that I just heard this morning about the Dell "Studio Hybrid", which is a copy of the Apple mini.

And on MacObserver, we find that Rob Enderle is listed at Apple Death Knell #51 (the counter's still only at #52), which was a prediction from Enderle for the year 2008.

let's see how Mr. Enderle has faired, against his own writings:

"If Apple can't at least double its small share during this unique event it should abandon the Mac OS as a dead end, because this kind of opportunity will never come again." (May 2005)

Well, Apple has gone and doubled its share, but the problem that Enderle has with this 'prediction' is that he goes on to say:

"If it does double share, which it could do by cutting a broad swath through the consumer market with a well designed media center-like product, it could dramatically change the market and remind the Linux folks that the desktop isn't about FOSS -- it's about selling the products consumers want to buy."

The question for Rob is ... what does it mean when Apple is successful, but not exactly through the "media center-like" product?

Afterall, do recall that back in early 2005, when this prediction was made, the "media center" only meant integration with the TV set in the Living Room (ie, AppleTV). Of course, we should also keep in mind that the word "could" is a weasle loophole, as Rob can simply claim that he wasn't claiming that this was the _only_ approach.

But the second problem that Mr. Enderle has is that he has since made claims (5/5/2008 - Technewsworld) of doom-n-gloom for Apple if they fail to "make a dent in the universe" by staying focused on the consumer segment...

--- IE doing what Enderle was suggesting that they *should* do back in 2005 ---

...because Enderle now thinks that Apple "...needs to find a way to embrace the business user..."

For Rob to try to weasel out from that declaration, he could try to hang his hat on the iPhone, but the only thing that he said about it was: "...given that Microsoft is after Google and Google's Android represents the biggest threat to the iPhone, it occurred to me that the more interesting path might be a deeper partnership between [Microsoft and Apple]...to hold off the bigger threat [of] Google".

That shows that Rob missed any concept of using the iPhone to go after RIM as a door into Enterprise by a small distance ... like around a couple of AU's (Astronomical Units).

-hh

Jul 30, 08 - 10:02 am Comment from: Chuck

Man, what a sad, sad day for Dell.

This just reeks of desperation. And, what are they thinking? They haven't even finished the effort to go back and refocus on their core business, being the Walmart of computers. They don't "succeed" by innovating new products, their business is volume, volume, volume on razor-thin profit margins.

This is doomed.

Jul 30, 08 - 10:03 am Comment from: Radius

@ChrissyOne

Isn't the Touche' that fancy new French iPod?

Jul 30, 08 - 10:03 am Comment from: Blue Dream

After picking myself up off the floor, let's just say Dell did come out with a good and cheap product...all Apple would have to do is slim down their prices and its "ballgame".
This shows true desperation to reinvent Dell. HP was smart from the getgo to realize they couldnt beat 'em, so they joined 'em and came out with the HP branded iPod. But even that had a short life, but HP didn't have their neck against the sword.
Dell is a 3rd party hardware conglomerate and that is all they are ever going to be. They need to punt and accept reality and trim their margins and increase effeciency to keep treading water for a few more years until Apple finishes them off. Michael, you had a great run and a good short-term plan...now it's time to retire while things still look decent like Bill did. You and Rob can start a new firm consulting monks on their daily wardrobe.

Jul 30, 08 - 10:15 am Comment from: Macromancer

I had to check my calendar to see if i had slept until April.

Jul 30, 08 - 10:15 am Comment from: Register or Login

It has to be a joke. Even Dell can't be that stupid

Jul 30, 08 - 10:21 am Comment from: BSOD

I hope they pay Rob in Dell shares! That would be fantastic!

Jul 30, 08 - 10:21 am Comment from: Mr. Peabody

Who's next? John Dvorak?

Jul 30, 08 - 10:22 am Comment from: bc

what Eric said. my reaction exactly

Jul 30, 08 - 10:22 am Comment from: DLMeyer

I wanted to say "MDN is wrong again!", but a couple other guys beat me to it. Of course this is a joke. The fact that RE got hired to consult on something is, in itself, a joke! Chances are good that this new product from Dell will also be a joke, but we'll have to see it first. Try the software, test its battery life ... the works.
The problem they face is that Apple already has several things going for it. A good reputation, good hardware, good software, good library of available content, and a broad range of devices. Apple will have to stumble in order for another player to find any level of success. The recent toe-stub (iPhone related) might have helped, but they were not ready, were not able to take advantage of it.
L00zrz

Jul 30, 08 - 10:22 am Comment from: smackman

Yeah, what Eric said.

Wow, just wow. I think I need to lie down now.

Jul 30, 08 - 10:23 am Comment from: bc

Dell DJ Ditty 2.0, anyone?

Jul 30, 08 - 10:25 am Comment from: Radius

Possibly the P Ditty? It only plays hiphop?

Jul 30, 08 - 10:26 am Comment from: Greg

The kiss of death!

Jul 30, 08 - 10:29 am Comment from: jackspratt

it's not a joke. but at the same time, it is.

IT WORKS ON SO MANY LEVELS

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Mon, Mar 15, 2010 - 10:42 AM EDT — AAPL: 223.034 (-3.566, -1.57%) | NASDAQ: 2360.47 (-7.19, -0.3%)

This is not a joke: Dell hires Rob Enderle to consult on new ‘iPod killer’

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Mon, Mar 15, 2010 - 10:42 AM EDT — AAPL: 223.034 (-3.566, -1.57%) | NASDAQ: 2360.47 (-7.19, -0.3%)

This is not a joke: Dell hires Rob Enderle to consult on new ‘iPod killer’

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