Dell warns of earnings miss; shares plunge 15%

Dell plunged 15% to $18.72 in pre-market Inet trading after saying it expected fiscal second-quarter earnings of 21 to 23 cents a share, below the average analyst estimate compiled by Thomson First Call of 32 cents a share, due primarily to aggressive pricing in a slowing commercial market.

The Round Rock, Texas-based Dell now sees earnings of 21 to 23 cents a share for the July period on revenue of about $14 billion.

Current market values:
• Apple – $51,064,500,320
• Dell – $44,447,732,640

MacDailyNews Take: If Dell ceased to exist today – say Michael Dell sold the company and gave the money back to the shareholders – nobody outside the company would care. Another Windows box assembler would simply slide into place and the mediocrity would continue unabated.

Related MacDailyNews articles:
Survey shows big jump in consumer interest in buying Apple Mac; Dell takes steep slide – July 06, 2006
The Wired 40: Apple #2, Microsoft drops to #36, Dell falls off list – June 28, 2006
Dell laptop explodes into flames at Japanese conference – June 21, 2006
Time Magazine on Apple’s 13-inch MacBook: ‘Dell and HP should be very worried’ – June 07, 2006
The Channel Insider: Dell is no Apple – May 31, 2006
Will Dell’s retail computer stores work sans inventory? – May 30, 2006
Dell to open retail stores – May 22, 2006
Dell burned by selling machines at bargain-basement prices last quarter, pain may not be over – May 09, 2006
Dell warns 1Q earnings will miss mark; shares tumble – May 08, 2006
Apple passes Dell in market value – May 02, 2006
The Motley Fool: Apple ‘may be the next Dell’ – April 07, 2006
Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006
Payback? Wall Street didn’t like Apple passing Dell in market value – February 09, 2006
Apple Mac is #1 in European education market, pushes Dell down into second place – February 03, 2006
BusinessWeek: How can Apple be worth more than Dell? – January 20, 2006
Steve Jobs emails Apple team: Michael Dell not the best prognosticator, Apple worth more than Dell – January 16, 2006
Apple now worth more than Dell – January 13, 2006
Apple primed to pass Dell in market value – January 12, 2006
Corporate IT buyers fuming that Apple has Intel Core Duo Macs shipping while Dell and HP wait – January 12, 2006
Financial Times: Dell and Microsoft can never hope to attain Apple’s Mac aura – January 10, 2006
Struggling Dell has lost its mojo while Apple shows rapid growth – November 07, 2005
Apple growing faster with more innovative products, better support than ‘one-trick pony’ Dell – November 01, 2005
IDC: Apple shows rapid growth, holds 4.3% U.S. market share on 48% growth – October 17, 2005
Michael Dell say’s he’d be happy to sell Apple’s Mac OS X if Steve Jobs decides to license – June 16, 2005
Why buy a Dell when Apple ‘Macintel’ computers will run both Mac OS X and Windows? – June 08, 2005
Apple Macs are less expensive than Dell PCs – April 25, 2005
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
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

209 Comments

  1. Whoa!
    Apple has it’s second best quarter and the next day Dell announces that they won’t meet their predections.

    What’s going on… I’ll tell you. People are buying more Macs.

  2. Dell has lost it’s shine perhaps, but they still command a whopping 30% market share.

    What Apple is doing is stealing Dell’s thunder.

    If Apple started selling Mac’s with the option of Mac OS X or Windows, or both. They could do some serious damage to Dell with Apple’s numerous high profile stores.

    Apple store employees are actively selling MacTels to customers with the intention they go home and install Windows.

    After all they are salespeople and salespeople work on commission.

  3. You people are taking Microsoft’s immense power and market position far too lightly.

    Dell is firmly entrenched with Microsoft, and as such will rebound quickly. It will be Apple’s stock that will be in the toilet just as soon as Microsoft releases an ultra-stable, secure Vista and a highly anticipated, iPod killing Zune…

    … which will be never…

    Rest in pieces, Dull and Microshaft.

  4. Dell plays in the razor-thin-margin market while Apple stays out of the garbage dump. Dell is under price pressure from the Chinese (Lenovo, etc) in the commodity market and from Apple at the high end. They are literally between a rock and a hard place.
    The next time some pundit runs their mouth about why Apple should play in the throw away end of the market point them to this– you cannot make money at that end.

  5. Yes it is very unfortunate that the average – read dumb – Windows user won’t or is so clueless to consider alternatives to the mediocre world of Windows and switch to either Linux or Mac.

    Just today in a local newspaper they are running a poll on the dumbest error messages their computers display in front of them.

    Check it out yourself here:

    http://www.metro.co.uk/weird/article.html?in_article_id=17726&in_page_id=2&expand=true#StartComments

  6. Dell and Microsoft have seen better days and I really don’t see any future for either company, at least in doing what they have been doing. As a Windows box assembler, Dell is nothing special. Dell machines fail ROUTINELY where I work. Their monitors are nice, though, and I’ve heard many a Machead speak positively of them. If I was Dell, I’d branch out into something else besides computers while I was still solvent. Leave the low end to folks like Tiger and leave the high-to-middle ground with Apple.

  7. To Mr. Gorilla, please do not put apostrophes where they’ don’t belong.

    Its denotes possession, It’s means it is. Gorillas may not be able to remember that, but cows do and it offends us to have to see errors repeated until they become acceptable.

    Next, the plural is indicated by adding an s without a preceding apostrophe. The plural of Mac is Macs.

    This message in the interest of the whole herd, not just a pride of gorillas.

    Hortense prays that the gorillas do not reoffend.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.