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Dismissive Dell CEO not impressed with Apple Mac mini, calls iPod a ‘one-product wonder’ and a ‘fad’
Monday, January 17, 2005 - 10:07 AM EST

"Dell has questioned Apple's long-term business strategy, dismissing the iPod as a 'fad' and a 'one-product wonder' and claiming the new Mac mini won't dent the PC market," Andy McCue writes for Silicon.com. "In an interview with silicon.com at Dell's Round Rock headquarters in Texas last week, CEO Kevin Rollins said the number of headlines Apple grabs does not worry him and that the company isn't 'in the same league' as Dell."

MacDailyNews Take: Of course Apple isn't in the same league as Dell. Apple is not a commodity box assembler wholly dependent on another company to supply an operating system that strives unsuccessfully to be like a Mac. Hence Apple's Mac platform works much more seamlessly and painlessly for their users.

"'It's interesting the iPod has been out for three years and it's only this past year it's become a raging success. Well those things that become fads rage and then they drop off. When I was growing up there was a product made by Sony called the Sony Walkman - a rage, everyone had to have one,' [Rollins] said. 'Well you don't hear about the Walkman anymore. I believe that one product wonders come and go. You have to have sustainable business models, sustainable strategy,'" McCue reports.

MacDailyNews Take: Sony's Walkmans played cassettes or CDs. Any player that played cassettes or CDs could do exactly the same things as a Sony Walkman. Apple's iPod + iTunes cannot be replicated by others unless Apple lets them. Sony had no such advantage.

"Rollins was, not surprisingly, unimpressed with the Mac mini. 'It might take some here and there, but Apple's market share in the global computer business has really shrunk pretty far. Where they've been making success recently is not in the computer business, but in the iPod music business,' he said. 'So this might be an interesting new product but I'm not really believing this is going to turn the industry upside down.'"

Full article here.

MacDailyNews Take: Dell's CEO sounds worried. He should be.

Related MacDailyNews articles:
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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Jan 17, 05 - 04:47 pm Comment from: D.B. Coyle

Why is is news when the Walmart of PC hardware has a biased uninformed opinion on something he has proven to have no expertise in; originality.

Jan 17, 05 - 05:13 pm Comment from: Marius Giurgi

Very ture and well said, teen drama! Steve DOES reffer to competition in his keynotes but, as you put it, he does it in a tactful way (thus, not in a degrading fashion, "coming out of pettiness and desperation").

Obviously we cannot escape the duality nature of our dimension, therefore comparison seems to be unavoidable, but Steve makes such a good Job being tactful you cannot help laughing at his gentle remarks wink

Jan 17, 05 - 05:13 pm Comment from: max

what happened to that other fad - a Compaq laptop ?

Jan 17, 05 - 05:14 pm Comment from: DNA

Not another teen drama: Exactly - SJ just mentioned longhorn in the '05 keynote, (also remember longhorn jokes from last year, and "hints" that Quark (not mentioned by name) was slow to move to OS X in the previous year, etc.)

Beyond that, Dell has proclaimed that their future is in business / server solutions, probably due to at least being able to see that the low-end PC market is about to be pulled out from under him.

Maybe someone has just showed him Xserve / Xsan, which probably scares him more than anything else. Once enough people get a taste of OS X with their mini's, many of them may think much more seriously about serving up their businesses with a solution that does not charge you by the number of users, etc., etc, ...

Don't think that big companies will be afraid to buy Mac Servers - There are plenty of execs out there who, once they are introduced to OS X server's compatibility, power, features, and LOW COST (that's right), and if the word starts spreading on THAT, then Dell will really be sweating.

New business plan - try to detract as much attention as you possibly can...

Jan 17, 05 - 05:52 pm Comment from: dazed + confused

Michael Dell predicted years ago Apple would be a memory by now. Its interesting Mr Dells comments have surfaced just after some analaysts have stated Apple may now be a better bet for longterm prosperity.

Dell are better off paying Microsoft the 'privilege' of putting Windows in their faceless boxes. Apples business strategy is of no relevance to Dells what so ever.

Jan 17, 05 - 06:52 pm Comment from: twilightmoon

dennis
They would be just as happy if they were making their money on shoes or cattle feed.

Also, Dell doesn't give a damn if they improve your life. They just want your money. Apple is different in that, while they also want your money, they want to get it by improving your life.

Jan 17, 05 - 06:58 pm Comment from: Eplekjekk

Magic word: Street. As in the street cred Michael Dell still miss. He has nothing. He has a model of assembling stuff engineered by others, and selling it cheap. If he ever had the Walkman, it would be his chance to make something of his own.

The Walkman was a miracle to Sony, and the problem wasn't the Walkman itself, it was that Sony never came up with the next big thing people would migrate to. Sony should have made the mp3-player - long before anyone else. But sorry, Apple saw the opportunity, and used it to create a wonderful product.

iPod has already sold millions. If it gets as big success as the walkman, it wil sell hundreds of millions! That's huge. And the next big thing? It's already here: The Mac Mini. It will make people migrate to a new computer platform, and Michael Dell is scared as hell.

Jan 17, 05 - 07:24 pm Comment from: Eplekjekk

That Forbes-writer is actually right. Apple really needs to loosen up on its DRM policy. We need a licence-free DRM sollution free to use by all the music industry. If not, the world will be stuck with half FairPlay-music and helf PlaysForSure-music. Then the world for sure won't be playing the same tune anymore, and that ain't fair.

Apple has the best music players AND the best music stor AND the best jukebox program. Everybody agrees on that, so they shouldn't need to lock us all up.

Macic word: Requierd, as in different DRM standards shouldn't be.

Jan 17, 05 - 07:33 pm Comment from: Benny Byte

Found this on the Dell Pocket DJ presentation at dell.com:

"At the price of just $199, the Pocket DJ makes the perfect gift."

Yeah, they have realized no one wants to buy this for themselves, so they are trying to make us give them away? Pathetic.

Magic word: Products, as in Dell don't have any, they just sell others stuff badly assembled.

Jan 17, 05 - 09:08 pm Comment from: feral

sean and retro cat..
thank goodness some one was paying attention...
that "dood" from dell has no clue or basis for argument
oxygen thief...

Jan 17, 05 - 10:15 pm Comment from: MCCFR

You have to go back EIGHT years to find a starting point where Dell shares outperform Apple stock.

There is one other year where they get within spitting distance, but that's about it.

What Mickey D and Kevin fail to grasp is that their business model only works in the short-term. Once you've squeezed all the juice out of the orange, that's it - no more orange juice.

But when you farm your own oranges, you have orange juice forever and ever. That's called creativity. It creates an asset that is actually worth something in the long-term.

BTW, Feral, I don't object to him stealing oxygen - it's the waste of genetic material I have a problem with.

Magic word: "done", as in "Take the fork out of Michael, he's done".

Jan 18, 05 - 12:03 am Comment from: Mikey

Dell doesn't like the 'mini' so much that they will have a clone out in 6 months!!

Mar 21, 05 - 05:45 pm Comment from: Holy Mackerel

Is it just me, or does Microsoft seem as though it's massive code base has become too large for it to manage and move forward?

Memories of Ashton-Tate with dBase IV and its half a million lines of code, or IBM needing a total reorganisation and move to Unix in the late 80s come to mind. IBM survived well, but Ashton-Tate was dominant yet died since it couldn't make the transition.

Aug 19, 05 - 07:42 am Comment from: TM

I have no emotional involvment with either Apple or Dell. Admit that you do (I should be right, statistically). So maybe I see it a bit more clear than you do.
Growth: Dell grows slower than Apple, but then again, keep in mind that growing from a small base is not the same thing as growing from a very large one. When you're the leader (and that's Dell in the PC market), it's not easy to grow.
Various jokes about Dell: I'm saying this without prior documentation & checks, so I might be wrong. But if I were you guys, I'd shut up because Dell might just decide to buy Apple, fire Jobs and show you the way.
Business: Dell has been a company with a keen business sense even since it's beginning. Relate to Apple. Compare the stock price growth / turnover growth by adjusting with where each company is in its stages of life. Dell won't go away that soon, if at all. I'd rather bet my money on Apple to do so (as they did make significant mistakes in the past - just look where Microsoft and IBM are today and you'll get it).
The world: stop believing the world is in a desktop PC. Boxes are boxes. Apple has a long way to go when it comes to services - be that desktop outsourcing, ITSM, and all... wait, they don't do any of this. Well, here's the future. Boxes... are boxes.
P.S. I've been acid on Apple, true. I hope they succeed. I don't particularly like them and I see them as another greedy corporation desiring to take my money, but... then I take a look at Microsoft. So there. Go Apple, make it happen, open your eyes to AMD, let everyone be able to buy your OS and the world will be a better place.

Mar 26, 08 - 07:36 am Comment from: Bridget

i am pritty sure that this information is not true. I am a freshman trying to write a paper and i am finding this information to be false. Sorry but no thanks, you might want to up date all your information. People dont believe who ever created this site. Its wrong

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