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.

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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
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Financial Times: Dell and Microsoft can never hope to attain Apple’s Mac aura – January 10, 2006
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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
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209 Comments

  1. “save it until the burners are available for a Mac. You can also create an HD-DVD project now and save it until the burners are available. “

    Are you saying you can’t author a DVD on a PC, if so, put it down here in black and white.

    And with Blu-Ray you can’t create the disk on an Apple notebook today. When will you stop flogging this particularly dead horse.

    If I said something like you can do this on Windows/Linux in preparation to actually do it in the future when the platform supports finishing the job, I doubt you’d let that one past.

    “got adopted at a pretty prolific rate by companies desperate to move away from Windows 95, “

    More evidence that they had an incentive to move in that case, so did it somewhat quickly and have less of an incentive now. keep talking, you’ll eventually make my point for me.

    “similar product to Expose existed in 1990 – the era of Windows 3.0”

    No I said the idea existed, and was implemented in a more limited form. Doesn’t change the fact that there is Expose like software for Windoes today, which you denied.

    Some advice, when you find yourself in the bottom of a hole, stop digging.

  2. “text-to-speech”

    In Windows since the 90’s. Available in DOS/Windows forever, heck even available on an Apple II (very crude of course).

    Yes, that’s why for our clients, when we have to specify a Windows system for someone with special needs, it invariably costs several thousand pounds to achieve the same thing we can achieve with the Macintosh for next to nothing.

    Having text-to-speech is not the same thing as the Macintosh’s Voiceover software and, if you had any knowledge of the platform, you’d know that.

    Of course, you could go and buy JAWS or whatever.

    Of course, because you obviously have more money than you know what to do with, it’s not a problem to go and spend thousands bringing your Windows system to the same level as a Mac. Just as you could go and load your system with a load of add-ins that just take up more processing cycles and that have to maintained. But, thankfully, there are around users of around 20 million Macintoshes (probably around 50 million people globally) who have a more common-sense way of dealing with life and find it easier to buy something that works from the moment you take it home.

    BTW, the nephew of one of my friends was recently in the US and had a computer (a Compaq Presario laptop) purchased for him by his father. He got it home and, before he’d even connected it to the Internet, it was reporting trojans and other ‘issues’. We can only assume that the dealer in the States had demonstrated its Internet abilities to someone in-store. So much for security not being a problem and so much for stupidity being a British problem. But I’m sure you’ll find a way of calling him stupid, despite the fact that he’s an Oxford honours graduate (in a proper subject, not media studies or basket weaving or whatever American ‘colleges’ are currently handing out correspondance degrees for).

  3. Oh, the idea existed.

    Oh sorry, I thought someone had actually done some work and created something. I didn’t realise that all you were saying was that some people who used Windows said “wouldn’t it be fabulous if we could do such-and-such”.

    But I forgot that Windows ‘people’ have lots of ideas: they just need Apple’s developers to turn them into reality.

    Thanks for making our point for us. Maybe you should stop digging now.

    Also, you’re contradicting yourself: Either corporates are slow to move – in which case, isn’t five years long enough unless XP is rubbish. Or they’re quick on the uptake, in which case, XP is rubbish. Either way, XP is a failure in the corporate space – a fact that even some Microsoft people have conceded.

    So the OS that you have spent this entire thread promoting is an OS that the corporate world has largely ignored, but you’d like 20 million Mac users – who are mainly private consumers/user-choosers – to give it a go if Apple should spontaneously disappear into another dimension. Why should they do something that the Microsoft ‘faithful’ are unwilling to do? I’m confused…

    Here’s a thought: You’re obviously an intelligent man, why don’t you go and hang out at some CIO conventions and convince them that life would be better if they migrated from Windows 2000 and NT4 to Windows XP and Windows Server 2003 – you should have no problem getting a speaking engagement and it would have more effect on Windows XP than the lousy 40-50 million people that Apple’s user base represents. I could get some contacts for you if you’d like, but you’d have to promise to turn your charisma down a notch or two.

  4. “By the way, just for the uneducated, which is the Windows laptop that has FW800 on the motherboard?”

    Firewire 400 as you know is built in on most laptops today. Firewire 800 can be added to any laptop with a CardBus Card.

    What speed is it on the brand new MacBook (not pro)? How about on the new iMac?

    Did Apple in their genius forget to include it?

    Stop wanking off and pretending that Apple widely implements this stuff…

    I guess it’ll come out on the MacBook and iMac when the Blu-Ray drive does, right? but now the OS on those machines is READY to use FW800 Right? You can probably even get READY to transfer data and video over it when it does come standard on one of those Macs… I bet you’ll tell me iLife gets READY to to this better than any other piece of software that gets READY to use non existing hardware.

    So again a BAD choice for a comparison because you’re saying:

    “An Apple can’t be replaced by a PC because, even despite the lack of real advantages for most people, and the fact that the Apple consumer line of Macs doesn’t bother with the technology, if I want to, I can get Firewire 800 on both….”

    “Oxford honours graduate “

    Yep probably let the subscription expire. Not using antivirus means sooner or later you will catch a virus on Windows, not disputing that. Not using a modern antivirus which also catches spyware means you must run a free antispyware program. not disputing that.

    “Also, you’re contradicting yourself: Either corporates are slow to move – in which case, isn’t five years long enough unless XP is rubbish.”

    Many corporates run XP today, some do not.

    But that’s irrelevant. The fact that some corporate customers are not upgrading their Win2k, whatever the underlying reason is, is NOT an argument as to why the world would miss Apple. If anything it strengthens the argument that they would NOT miss Apple.

  5. Right, seeing as this thread has now disappeared of MDN’s front-page (and bookmarking this thread so I can speak to an idiot like you is a waste of electrons) and you’ve had enough rope to hang yourself, let’s just put you out of my misery.

    1) You’ve said eariler in this thread that security was effectively a canard and that it had been long since solved by the Windows community. However – using your rules of debating – we’ve since established that, since the element of the Windows community that can allegedly disrupt my life (i.e. the business community) has largely ignored Windows XP and are still ‘stuck’ on Win2K, they cannot use you so-called security setup since

    a) They do not have Windows firewall
    b) They do not have Automatic Updates

    2) Even in the Small Business community where Windows XP adoption has been more successful (although not necessarily Windows Server 2003, given that a significant number of installs are achieved through Small Business Server), many companies are still running SBS 4.5 or SBS 2000 because there wasn’t enough ‘novel’ useful technology to justify SBS 2003.

    Again, Automatic Updates are not available in either of these products.

    3) Even if Automatic Updates were available in any of these pre-XP/2003 products, the business community doesn’t use Automatic Updates in case their systems land up downloading something from Microsoft that ‘breaks’ another application. This even applies to anti-virus definitions, which get checked against a small ‘control’ group before they’re rolled out to the whole corporate network.

    I’m surprised you don’t know this, as you’re obviously far ahead of me and my knowledge of IT in business.

    Instead, business customers either use SMS at the corporate end or WSUS (Windows Software Update Services) at the SME/SMB end. At that point – as a business user – you’re reliant on your IT support to keep you up to date. And most corporate IT functions are so far up their own asses – rather like yourself – that they move at a snail’s pace, and most SMBs only call on an external support function when something goes wrong, because they’re too tight to pay for a retained level of service.

    Most SMEs simply allow LiveUpdate (or the McAfee equivalent) to keep them up to date for virus definitions, not realising that LiveUpdate actually only updates once a week and that – for real protection – you need to manually download and install the definitions files, otherwise you’re actually out of date for six days out of seven.

    So, the long and short of it is that – far from having security dealt with in any reasonable way – the business community generally and the Small Business community specifically are probably far more responsible for the viruses, spyware and adware that permeate the Windows world and – by implication – sometimes ruin the performance of the Internet for those of us who weren’t stupid enough to enter your inbred monoculture.

    4) FW800 is a pro option and, as such, only gets implemented on pro machines. I can’t imagine why it isn’t on the original 15″ MacBook Pro, but – using your logic – if you need it, you’ll buy a 17″.

    5) I could buy it on a CardBus card, but then I’d probably have to power every device with its own power supply, which is why I prefer it on the motherboard. You’d know that because you’ve used it of course. Or are you just recommending things without knowing how they work? Anyway, I just wanted to check whether I’d have to pay yet more money over the stocker price to play in the Windows world of fun and you’ve just confirmed it so thanks.

    6) Yep probably let the subscription expire. Not using antivirus means sooner or later you will catch a virus on Windows, not disputing that. Not using a modern antivirus which also catches spyware means you must run a free antispyware program. not disputing that.

    And finally, before I wave goodbye to this thread, you’ve just proved you don’t/can’t read or comprehend simple statements.

    Read what I said again (I’ll obviously have to shout, because it’s the only way you’ll hear):

    IT WAS INFECTED BEFORE HE TOOK IT OUT OF THE BOX AND BEFORE HE CONNECTED IT TO THE INTERNET.

    YOU CAN”T UPDATE THE SUBSCRIPTION BEFORE YOU CONNECT IT TO THE INTERNET.

    SO THE IMPLICATION IS THAT THE DEALER – SOME FUCKWIT IN NEW YORK, POSSIBLY A FRIEND OF YOURS – TOOK IT OUT OF THE BOX AND USED IT AS A DEMO MACHINE AND THEN (SOMEWHAT DISHONESTLY) SOLD IT AS A NEW MACHINE. SO AN AMERICAN WHO’S BOTH STUPID AND A CROOK, WHO’D HAVE THOUGHT IT.

    THE ONLY OTHER OPTION IS THAT IT WAS INFECTED WHEN IT LEFT THE FACTORY.

    DO YOU UNDERSTAND WHAT I’M SAYING. OR DO I HAVE TO DRAW A DIAGRAM.

  6. between Dell and Apple is that if Apple actually got into financial trouble, somebody (or a group of somebodies) actually has a reason to save it.

    Apple has…

    A customer list
    A portfolio of technology/intellectual property
    Brand recognition
    The iPod platform
    A solid reputation

    Dell has…

    A customer list
    The phone numbers of some people in Taiwan who can get components cheaply

  7. “b) They do not have Automatic Updates”

    No automatic updates on 2k? You just keep proving your ignorance.

    “checked against a small ‘control’ group before they’re rolled out to the whole corporate network.”

    As you point out, the mechanism exists for an IT department to vet updates first if they care, or not if they don’t choose to.

    What are you saying, “The world would miss Apple because Microsoft has really flexible options for keeping systems up to date?”

    Likewise, if they deem a firewall necessary for 2k systems, that’s easy to implement.

    Symantec likewise has a solution to allow the pushing of definitions from an internal server, if that’s what you want to do.

    “as you’re obviously far ahead of me and my knowledge of IT in business. “

    Clearly, without a doubt.

    Every time I hear something back from you, that picture of the Coyote comes into my head, feet spinning in air, having run past the end of your knowledge.

    Almost every one of your positions contains major factual errors. Not small errors, not a difference in opinion, but major factual errors.

    But like the coyote, you just keep coming back and back and back with the same result each time.

    “inbred monoculture.”

    Funny that a Brit would make jokes about an inbred monoculture. I know inbreeding is one of your national pastimes.

    ” I can’t imagine why it isn’t on the original 15″ “

    Just admit it was a BAD choice of an example as to why anyone would miss Apple. Spinning feet…

    “recommending things without knowing how they work?”

    Funny given the ignorance you show of the products you’re discussing in your attempted rebuttals, that you would say such a thing.

    ” SO AN AMERICAN WHO’S BOTH STUPID AND A CROOK, WHO’D HAVE THOUGHT IT.”

    Either way, that British people are stupid, or that this American dealer used a machine as a demo one then sold it as new is not a reason why the world would miss Apple computer.

  8. “if Apple actually got into financial trouble, somebody (or a group of somebodies) actually has a reason to save it.”

    Yes, those people were Microsoft, and the reason was to protect Mac Office revenues and to avoid antitrust problems.

    Practically I think if Apple gets into financial trouble again, you won’t find anyone rushing in to revive it, they may pick the bones, but not revive it.

    The reason is that as long as the iPod continues to be successful, then Apple probably won’t go down, and IF it becomes unsuccessful, it would be because somebody (or a group of somebodies) will have walloped them in the market, so there would be not much of an iPod business to resuscitate.

    Same on the PC side, if Apple is successful with Intel Macs they won’t be in any need of resuscitation. If they are not and get into financial trouble then that part of the business is probably past hope.

    Before somebody flames me because they think I’m saying Apple will get into financial trouble, read it again, I’m saying what would likely happen IF Apple were to get into financial trouble.

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