Michael Dell on Apple: ‘they’ve priced themselves out of the mainstream market’

“It’s been 20 years since Michael Dell started his made-to-order computer business from his college dorm room. As he approaches the 20th anniversary of his company and his 40th birthday, Dell can look back with a great deal of satisfaction that he’s gone in the right direction,” Ron Insana writes for USA Today.

Insana conducted a Q&A with Dell, who, when asked in 1997 what could be done to fix the Apple said, “What would I do? I’d shut it down and give the money back to the shareholders.” (source)

Insana: What about the resurgence of Apple (AAPL)? Steve Jobs says he sells the Mercedes of the computer business while you sell the Taurus.

Dell: If you go look at where jet engines are designed, for example, you might be curious to note that more than half are designed on Dell computers. What Apple has done is build the Bang & Olufsen of the computer industry


  1. Yep, you have to agree that Apple really has priced itself out of the mass market. Personally I am happy to pay more because I want the best, but most people will settle for something that gets them from A to B.

  2. “Dell: If you go look at where jet engines are designed, for example, you might be curious to note that more than half are designed on Dell computers. What Apple has done is build the Bang & Olufsen of the computer industry � very nice products, but they’ve priced themselves out of the mainstream market.”

    I bet Steve would beg to differ regarding the iPod….

  3. Also, any ‘pricing out of the mainstream market’ will be made up by HP.
    They will be selling the current 3G iPods…at a LOWER price than they are now!

  4. Dell sell hardware at the similar price as Apple when we talk about servers.
    With Dell you need M$ expensive software to get it work.
    With Apple you get Os X server free of charge.
    That makes Apple xServe several thousand $’s cheaper than Dell.
    You need less IT people deploying Os X server than M$ server so you save money there also.

    I believe to the POWER of Os X ” width=”19″ height=”19″ alt=”smile” style=”border:0;” /> It is cheap, reliable and secure

  5. Okay, so let Dell be proud of the fact that he’s the biggest seller of crap PCs in the industry. That’s something to be really proud of in this country. Once the computer revolution subsides or morphs into something else, he’ll still retain his millions and live out a very happy life, while ripping people off the whole time. Since when is selling the most of something indicative of being the best? IMHO he’s not even hocking Tauruses, try VWs (circa ’49 to 69)!

    And, notice, he didn’t mention that any innovation happened in his company toward their product, only on his computers by someone else.

  6. And WHO has the 3rd fastest Super Computer in the WORLD for cheader then any of the top 500 using desktop systems????!!!! Shove those prices up your *** Mikey!
    I hate it when followers attack leaders for not leading well enough.

  7. Michael Dull hasn’t had an innovative moment in his life except in college when he realized he could copy what everyone else was doing and do it more cheaply.

    He has made a lot of money but his contribution to the advancement of the industry is pretty much nil.

  8. Well, if the “mainstream” consumer can’t afford $799 for a desktop system (with display) or $1,099 for a notebook, then yes, Apple has priced themselves out of the mainstream market. I guess Mikey knows more about the market than anyone, but last time I checked, those weren’t exactly exorbitant prices…

  9. Phil,

    Well said, I mean look at the piccy of him. He’s a suit.

    Apple make the best products. Always have, always will.
    Anyone who disagrees will be exterminated.

  10. Michael Dell certainly wins the prize for non-sequitur of the week: more than half of jet engines are designed on Dell hardware, and Apple have priced themselves out of the mainstream market. Since when was jet-engine design a ‘mainstream’ activity?

    Something that I’ve always found revealing is that when I walk past the cafe on my street (Manhattan, Lower East Side), out of the people using laptops on the cafe’s wireless network, about three out of four are using iBooks or PowerBooks. Perhaps Macs are the computers that people enjoy using, and that they buy for themselves, while Dells are what they have to use at work? (this is a good description of my situation, incidentally).

    Ooops, almost time for me to go design a jet engine.

  11. http://www.macosrumors.com/40404E2.html

    Veryvery Interesting:
    “Large-scale purchases of Xserve G5s by high profile educational and scientific customers like Virginia Tech are well known to be playing a part in the shipping delays affecting Xserve G5s – particularly the dual-processor model.”
    “But Apple appears to be using some “creative” means to keep massive purchases of new systems (mostly dual-processor Xserve G5s, but also preorders of faster 970FX-based PowerMacs as well) for several arms of the United States government under the radar.”

    AAPL is going up up up ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

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