Apple growing faster with more innovative products, better support than ‘one-trick pony’ Dell

“Projected sales and earnings shortfalls are the latest signs that Dell’s heady days of outpacing its rivals are ending. And investors aren’t happy,” Louise Lee reports for BusinessWeek. “On the surface, the Oct. 31 news out of Round Rock, Tex., is bad: On Oct. 31, Dell said it would fall short of both revenue and earnings expectations for its fiscal third quarter. Look beyond the surface, and the long-term situation at the world’s largest PC maker may be even worse.”

“After years of heady growth, Dell may be coming back to earth. As the computer giant approaches $60 billion a year in sales, it has now missed expectations for two consecutive quarters. The shortfalls are a sign it may be struggling to manage costs while it tries to sell enough computers to maintain a lofty revenue-growth rate, and keep gaining market share,” Lee reports. “Meantime, companies with more innovative products and better support, such as Apple, are growing at a faster pace.”

Lee reports, “Dell ‘is too much of a one-trick pony,’ says a former high-ranking Dell executive. ‘They’re not innovating, or building enough new businesses. They’ve executed flawlessly for 10 years, but that’s kind of an impossible thing to continue.'”

Full article here.

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Dell CEO: Apple can’t just have one product and then say they’re the innovative leader of the world – February 22, 2005
BusinessWeek: Rather than dismissing Apple products as fads, Dell should try starting a few – January 31, 2005
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  1. Dell have nobody to copy no more and you can only fool the public for so long with those $300 computers. And they know this but they kept pumping out junk.
    They fool only the poeple who don’t know nothing about computers and have them buy and then tell them later that they need all this other stuff to get the computer to run right. Mike Dell you are a bottom feeder and need to get off your rich ass a pay the people back, who work so hard to get to where you are now.
    How by the way Dell this week is laying off 450 people, that is really sad. They work so hard for the asshole and some of them kiss the ground he walk on. Man I’m glad I don’t work for them. While back these same people was so big about themself and now I bet they are sitting in that room and thinking I kiss ass for so many years for what NOTHING. I’m enjoy this moment now. Apple you go and kick some Dell ass

  2. Very seldom do the basic commodity box sellers thrive beyond the initial stages though in all honesty that first stage can be quite drawn out. But that of course is where lies the problem. When something so basic works for so long and creates such growth it is very difficult to see the fall coming, know how to stop it or even if you see it know, WHEN to make the changes to avoid it, assuming you can. It has to be after all and sundry question why you are changing a winning formula but before the decline in your strategy and business is so great that it can no longer be turned around without drastic intervention. Often (indeed almost always) those 2 time zones overlap in the middle.

    That is why Steve Jobs is so good, people simply expect him to prove his critics wrong so their influence made impotent and he can act sooner than most and he has such self belief and charisma that even when things are going wrong he has the willpower to convince his critics that he can turn it around. Thats why replacing him will be so tough. The Michael Dells of this world on the other hand are ten a penny even if they are good at selling wash powder.

    In Britain we had a similar figure to him in Alan Sugar who achieved very similar impact in the 80s with cheap computers and hi fi but of course on a tiny scale by comparison to Dell. The one thing I admire about this bloke is that he had enough sense to see that what was once the market leader here had no future selling cheap computers in Europe and he simply closed it down, moved on and held on to his fortune which he has invested elsewhere, mostly in set top boxes. Funny that people here still think he is a ‘bigwig’ when these days, his only real presence is as Britains answer to Donald Trump on the Apprentice. Yep thats how far the British economy has been downsized, but you never know when Donald hangs up his big wig Michael may be around to take over the role himself. Now that would be irony.

  3. Lenova – the chinese computer maker that took over IBM. That is Dell´s problem.
    When you go cheap, the new cheaper manufacturer will beat you.
    Dell is now trying to move back upscale.
    Dell is not a computer company per se, but a well-oiled marketing distribution machine.

  4. I think the title of this story is backwards. Dell is a one trick pony while Apple growing faster with more inovative products and better support.
    The way the title reads now it sounds like the writer is saying that Apple is growing faster but Dell is the inovator and has better support.

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