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Dell CEO: Apple can’t just have one product and then say they’re the innovative leader of the world
Tuesday, February 22, 2005 - 09:22 AM EST

"It's fitting that 2005 should be the year Dell is named America's Most Admired Company. The computer maker turns 21 years old in May, and as it attains the age of majority, it has grown from an industry curio into one of the nation's most prominent and respected corporations," Andy Serwer writes for Fortune.

"But Michael Dell has been playing the role of youthful renegade for a long time now, and he's clearly a little uncomfortable when I break the news in his offices in Round Rock, Texas, that his company is at the top of FORTUNE's list. He thinks about it for a second and then flashes his 'I can eat nails' grin. 'I know my mom would be proud, but I certainly don't feel like we're the most admired company,' he says," Serwer writes. "Just to give you an idea of how far Dell has come: 21 years ago (when the company was founded) IBM and HP were voted No. 1 and No. 3 respectively on America's Most Admired Companies list. (At that point if you had asked the voters, "What's a Dell?" they probably would have told you it was a small, secluded, wooded valley.) As for PC market share, of course, Dell wasn't on the radar screen, while Commodore, with about $1.1 billion in PC sales, was the industry leader with a 27% U.S. market share. IBM was No. 2, and Apple and Tandy came in at No. 3 and No. 4."

"Could Dell ever come up with a PlayStation or an iPod on its own? 'We could. But I don't think that's our strategy,' Dell CEO Kevin Rollins insists. 'I think there are those who come up with those products, but frankly, as far as technologies that actually help customers, those two products are a one-product event. You can't just have one product and then say you're the innovative leader of the world. I'm a big admirer of everything [Apple's] done. It's phenomenal. But then to say it's the world-beating wonder of forever? No, it's not.' Hmm, sounds like a case of Apple envy, which is understandable these days. While Dell is almost six times more profitable than Apple, its market cap is only three times bigger. Of course, thanks to the iPod, Apple is growing faster right now, and Steve Jobs' company has all the buzz," Serwer writes.

Full article here.

MacDailyNews Take: Dell's CEO is turning out to be potentially nuttier than even Microsoft's CEO/Dancing Monkey, Steve Ballmer. Rollins needs to learn how to keep his mouth shut and stop oozing jealousy towards Apple. Dell should be plenty worried about Apple and the Mac platform's capacity to take away business from Dell and these continued comments by Rollins show his fear. Dell should also be worried about China, which could soon potentially eat commodity Wintel box assemblers like Dell for lunch, but that's another story.

Fortune's survey asked businesspeople to vote for 10 companies that they admired most, from any industry. On the top ten list of "Innovation," Dell was absent while Apple Computer placed 3rd after Kinder Morgan Energy Partners (1st) and FedEx (2nd). On the top ten "Computers" list, at number 1 (ironically, since they've exited the PC business) sits IBM with a score of 7.61, Dell at number 2, with 7.46, and Apple Computer scored 6.84, which was good enough for 3rd place. In computer software, Apple isn't even included on the list - so, now you know just about everything you need to know why this list is a mess. Apple is one of the top software developers in the world.

Fortune and its survey partner, Hay Group, asked the top managers at 582 companies (the largest by revenues in each sector) to judge their competition. In all, 10,000 executives, directors, and securities analysts rated the companies in their industry on eight attributes (Innovation, Employee talent, Use of corporate assets, Social responsibility, Quality of management, Financial soundness, Long-term investment, Quality of products/services). Fortune then asked voters to name the companies they most admire in any business from a pool that included last year’s top quartile of finishers plus the top two on each industry list.

Related MacDailyNews articles:
BusinessWeek: Rather than dismissing Apple products as fads, Dell should try starting a few - January 31, 2005
Dismissive Dell CEO not impressed with Apple Mac mini, calls iPod a 'one-product wonder' and a 'fad' - January 17, 2005
Michael Dell owes Apple an apology; Apple up 176 percent vs. Dell's 13 percent in past 12 months - January 15, 2005

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Feb 22, 05 - 04:00 pm Comment from: NoMacForYou

Ben - I did crawl into your cave, and we had a good ol' time, too. Do you want me to come back to visit?

Feb 22, 05 - 04:01 pm Comment from: Ben

Uh-oh. I made a stinky in my diapie. Where's my mommy?

Feb 22, 05 - 04:01 pm Comment from: blackadder

Dell pfft. Michael Dell is not only a Republican, he's such a loser he still has his computers assembled in the US.

Feb 22, 05 - 04:02 pm Comment from: Ben

PeterTheDellBeater: (hehee..)

Yes, businesses jab at each other. Thats what they do. Dells jabs Apple, Apple jabs Dell, Dell sucks...end of story. I'm pretty sure Jobs can defend himself without help from the likes of a "dellbeater" (again, heheh).

Remind me again why you are still here?

Feb 22, 05 - 04:05 pm Comment from: Ben

BSOD:

congrats...way to use symantics to make some sort of point (which we are all waiting for)

Feb 22, 05 - 04:05 pm Comment from: NordicMac

Ben really had the little girl laugh down. And he seems to have a memory problem.

These Wintel trolls like Ben and NMFY crack me up. MDN wouldn't be half as entertaining without them!

Feb 22, 05 - 04:06 pm Comment from: PeterTheDellBeater

Little Boy Ben,

I'm here to profess my love for you...

oh wait, I was here to explain why Apple makes a quality product and Dell makes cheap crap.. But then I ran into you... :D

Feb 22, 05 - 04:07 pm Comment from: BSOD

Ben,

What symantics? I said what I said and that's it. If you're going to comment on someone's post, then just take the time to read it and perhaps even accurately quote it. I know that's a lot to expect - and perhaps too much to expect from someone with your obvious intellectual limitations - but it could be a start.

Oh, and you might want to actually read the thread's referenced article, too. It's just a thought.

Feb 22, 05 - 04:09 pm Comment from: not Ben

Ben is a discrace to us REAL WinTrolls. Ignore him and his childish ignorance and perhaps he'll go away.

Feb 22, 05 - 04:10 pm Comment from: Ben

" I was here to explain why Apple makes a quality product and Dell makes cheap crap."

Yeah, I think this crowd needs that explained to them one more time. You might have a tough time with that one. Tell us all again why Dell makes cheap crap made of poo?

Feb 22, 05 - 04:13 pm Comment from: Ben's mom

Ben, it's time to change your diapie. Stop smearing poo all over the eMachine and let's get you cleaned up.

Feb 22, 05 - 04:19 pm Comment from: BenTheMasterBeater

Leave me alone, mommy! I'm chatting with the Mac kids and reading Ashlee Simpson's daily journal!

Feb 22, 05 - 04:35 pm Comment from: ndelc

I can't remember the exact details of the story because it was a few years ago that I read it, but from what I recall, Apple teamed up with another company whose name I forget to build an easy to use online community. It became very expensive, however, and shortly before it went live, Apple pulled out. The other company found other investors and released the first version of AOL a few months later. Apple kept some of it's stock and made a little money on the deal but no where near what they might have had they stuck it out.

Feb 22, 05 - 05:44 pm Comment from: darknite

hey ndelc

Apple used to have an online service portal for authorized service providers. I think it was called AppleLink. They sold the AppleLink foundation to Steve CAse, and AOL was born. Apple later tried to do the eWorld thing, and it was a flop.

Feb 22, 05 - 05:45 pm Comment from: as sa

haha Dell are innovative because they are SO CHEAP. I could replace the entire computer every 6mo for the cost of a mac Gpu. Then again, why would I want to since they are noisy and buggy. They seem to own the world though, its the only thing FoxNews and CNN agree on, which laptops to get...

Feb 22, 05 - 05:52 pm Comment from: AppleLink user

Yup, Apple was behind AppleLink which became AOL.

Feb 22, 05 - 05:56 pm Comment from: Dan Birchall

AOL was originally co-developed by Quantum and Apple, and would have been called "AppleLink Personal Edition" or something like that, except that Apple pulled out due to cost overruns.

Even so, AOL was Apple-only for its first year and a half, I think...

http://www.corp.aol.com/whoweare/history.shtml isn't detailed, but it's useful.

Feb 22, 05 - 06:05 pm Comment from: PCFAITHFULIAM

The PC FAITHFUL Dont buy on price. They buy on performance. Faithful users could care less about Dell, IBM, Sony, Apple or anybody. The fact is the "Faithful" Buy on pure performce. Something None of you would understand using your POS Overbloated, Underestimated crap parts from Apple, Dell, and so on. The real funny shit is that most of you are so ignorant to know that besides the Mobo and Chip, everything else is a PC Part (Besides G5 Power Supplies) CD-Roms. Oh and you know whats even worst? The memory that comes with the G5's is THE SLOWEST memory on the market. The Cache Latency is the highest in the industry.

Feb 22, 05 - 06:11 pm Comment from: YeRaFaiTHFuLLJaCKaSS

"The PC FAITHFUL Dont buy on price. They buy on performance. Faithful users could care less about Dell, IBM, Sony, Apple or anybody. The fact is the "Faithful" Buy on pure performce. Something None of you would understand using your POS Overbloated, Underestimated crap parts from Apple, Dell, and so on. The real funny shit is that most of you are so ignorant to know that besides the Mobo and Chip, everything else is a PC Part (Besides G5 Power Supplies) CD-Roms. Oh and you know whats even worst? The memory that comes with the G5's is THE SLOWEST memory on the market. The Cache Latency is the highest in the industry."

Yes, we do know what parts are in a Mac. No Apple doesn't used the cheapest parts, you are clueless. Look inside a G5. They use Pioneer and Sony DVDR/RW drives, but if you condier that cheap for a personal computer then, so be it.

The latency on most macs is CAS 2-2-2, which is not slow. You're misguided and cluess and obviously a troll that know little about Macs. The only good PC I have is the one I built myself. I even put a after market heatsink my video cards. Super low noise etc. Dell uses cheap parts.. the cheapest they can buy.

Feb 22, 05 - 06:49 pm Comment from: I HATE DELL

WHAT, I MEAN WHATTTTTTTTT
That it, I had enough bull, First the only reason Dell is america's most admired company is that they flooded the market with their name so much that the avg. joe who don't know about computers will alway will buy a computer that cost $500.00, cause that person don't know what he or she got to so they have to buy cables and more parts in the computer to make it run. Now FORTUNE mag only look at what company is selling and making the most money at that time. Here in Austin Dell is one of the most hated company. You ask most of the worker who work there and use to work there believe that, cause Dell makes up to 15% of the work force in Austin, Tx. And when they had their layoff that hurted Austin. Dell will never be first in anything but selling junk that why they got sh#tly grin when they was told about FORTUNE.Dell just wait for somebody to come up with something then take idea and strip it down and put their name on it.But I think in the next 5 years DELL will be gone. How can a company like Dell stay around that never make nothing but junk and make it America is going to catch on so or later. So Micheal aka Mary and Kevin aka kathy enjoy your fame now. You two got maybe 2 to 5 years left before Dell go under and I know that for a fact

Feb 22, 05 - 07:12 pm Comment from: Ben

"And when they had their layoff that hurted Austin. Dell will never be first in anything but selling junk that why they got sh#tly grin when they was told about FORTUNE"

Where's that article again about Mac users being more intelligent? smile

Feb 22, 05 - 07:42 pm Comment from: I HATE DELL

Ben
Don't be hateing. I didn't say Mac users are more intelligent. Just because I miss spell a few words, But as a Mac user, we do stand behind are products.

Feb 22, 05 - 07:43 pm Comment from: schizzylogic

Honestly who cares what he thinks? He's just looking for attention. His comments and opinions of Apple don't change how I feel about Apple.

Dell is actually an innovator in manufacturing and distribution, but beyond that, they're just an assembler. They might as well build and sell toasters. If they don't change and adapt with the market, they'll be gone in a decade.

Feb 22, 05 - 08:11 pm Comment from: Ben

"Don't be hateing. I didn't say Mac users are more intelligent. Just because I miss spell a few words, But as a Mac user, we do stand behind are products."


wow....just wow.

Feb 22, 05 - 08:34 pm Comment from: Sol

I would love to see Dell's idea of a console. Their Dell DJ pod was nothing more than a copy of the iPod, only crap.

Feb 22, 05 - 08:43 pm Comment from: loki

We all owe DELL a tremendous debt of gratitude, after all, when Al Gore was their CEO, he did invent the internet...

Ben... Die...

Feb 22, 05 - 09:00 pm Comment from: Ben's mom

Uh-oh. Ben made another stinky in his diapy.

Feb 22, 05 - 09:50 pm Comment from: spongyparts

"Operational Innovation

Dell innovates with efficiency, and that is just what is necessary to survive in a commodity business. This of course is where Walmart is successful as well. Once there isn't much left in terms of operational efficieny, it makes sense to add additional prducts that are moving towards commodity products. Dell has already moved into TVs.

I wouldn't be surprised if Dell moves to digital cameras soon, more flash mp3 players and Tivo like devices when the times is right. As more an more consumer products use more and more PC componnents, Dell will be right there to lower the price points."
-----------------------------------------------------------
It isn't an innovation to buy cheap products or components from China. Nor is it innovation to pay dirt cheap wages to employees. This is what Walmart does. Wallmart is pretty much selling out the counrty.

Feb 22, 05 - 09:55 pm Comment from: spongyparts

NoMacForYou spewed out: Strawberry yogurt is my favorite.
-----------------------------------------------------
Funny, I would have guessed cheap hand lotion & a Blue Boy magazine.

Feb 22, 05 - 10:05 pm Comment from: spongyparts

To Ben: What kind of pathetic loser shows up to comment on something that doesn't interest him.

Feb 22, 05 - 10:40 pm Comment from: DudeMac

Who cares about Dell?! They wouldn't know innovation if it stood right in front of them begging!!

Feb 22, 05 - 10:48 pm Comment from: Travis

He's just afraid of Steve Jobs, Apple, and the iPod.

Michael Dell, prepare to bow down to Apple's power.

Feb 23, 05 - 01:46 am Comment from: ndelc

Here are some brief points regarding Apple's role in the formation of AOL from the book, "Apple Confidential" by Owen W, Linzmayer:

July 1985 Apple introduces AppleLinks, designed to be a digital connection between Apple and their dealers.

Project Samuel begins - a joint venture between Apple and Quantum to build an online service for, initially, Apple II users, that would basically provide customer support.

May 20, 1988, AppleLink Personal Edition debuts for the Apple II - $6/hour nonprime time service ($15/hour during prime time) gave subscribers access to Apple-specific resources, plus entertainment, business, education, and online shopping. Before the Mac version was released, Apple and Quantum started fighting over the direction of the service and Apple pulled out. They compensated Quantum by funding the beta for the Mac version and brought it to market without the Apple logo.

October 1991, Quantum renamed itself America Online and opened it's service to everyone, not just Mac users.

In 1992 Apple went to AOL and licensed the code that they originally funded to build eWorld.

June 1994, eWorld debuts.

March 1996, eWorld shuts down for good.

As you can imagine, this was under the chapter entitled "Big Bad Blunders". Another fascinating part of Apple's history, and one of the many that make you realize how impressive it is that they survived the 90's. If you haven't read Linzmayer's book, I highly recommend it.

Feb 23, 05 - 01:09 pm Comment from: Philippe de FRANCE

Dell c'est de la merde et c'est pas humain !!!!! ce ne sont que des cartons.......

Apple ne sont pas parfaits mais eux ont du charisme et de la créativité

et c'est pour moi le plus important

Feb 23, 05 - 05:27 pm Comment from: PCFAITHFULIAM

RE : YeRaFaiTHFuLLJaCKaSS


The memory, as I've mentioned before, is the same DDR400 that you use in PCs, but the motherboard is extremely picky about the SPD programming on the modules. The modules that the board supports are also quite slow, with very conservative memory timings (3-3-3-8). I don't believe that I've ever tested anything that slow on a PC before. And you my freind are clueless and obviously dont have a clue about hardware.

Here much on this for awhile...LOL

Using System.Jackass.Hardware
if( components != null )
else (Kill (Apple))
this.Hardware.Add(this.head)

Feb 25, 05 - 02:50 am Comment from: El Castaño

Dell es un puta mierda hecho de cartón. Apple no es perfecto pero está lleno de carisma y creatividad. Por mí, eso es lo mas importante. Miguel: vete a follar un titi.

Palabra mágica -- no sé, es en inglés wink

Jul 22, 05 - 10:14 pm Comment from: OzzysCross101

Apple is so great. Everything they do makes me smile. grin

Dell is kind of like Microsoft. They look at Apple and say "wow, what a great innovative deign, now I'm gonna use it!" Only Dell only looks at the physical appearance of Apple's products while Microsoft rips the software and Apps.

Dell is like the Wal*Mart of PCs; just making low-budget, pieces of crap (and they're not that aesteticly pleasing either-not what they were hoping for when they tried to go with the "alluminum" look or the brushed metal look or the white look for their designs.Personally, I think that within the next year or so, Apple will really start to stand out as a great sucess- and this time not because of the iPod. No matter what M$ and Dell or anyone else does that practically totally rips off of Apple designs or ideas or whatever, there will NEVER be any company like Apple. Hands down, they are truly #1.

Aug 18, 08 - 01:58 pm Comment from: coolhandluke

The Apple/Dell rival interesting. They are both great tech companies for different reasons. Both highly profiled tech companies have extremely successful trackrecords. One is very innovative, stylish and upscale and the other having a sucessful business model and struggling on the success of that marketing strategy to the present. Apple could care less about Dell as a competitor or a business model anymore and Dell can't help but take notice because Apple sets the trend in the tech world. There is a lot of juicy love/hate relationship with both Apple and Dell among their peers, customers and rivals. Its sure is a nice ride they are giving us. I'm loving the journey! But "Go Apple!"

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