“Is Dell, Inc. really in that bad of shape? Some in the market seem to think so, as Dell, Inc. shares were downgraded from ‘buy’ to ‘neutral’ today by American Technology, who pointed out that the world’s largest computer manufacturer is feeling the heat from industry competitors like Hewlett-Packard Company and Apple Computer, Inc.,” Brian White writes for BloggingStocks.
“I’m not so sure I buy the Apple argument (its marketshare is low and its computer prices, high), but I’d agree HP is causing much of Dell’s grief these days,” White writes.
“Analysts at American Technology published a research note published on Tuesday that referenced Dell’s recent ramp-up of AMD-based computers — which was termed as ‘weak’ by the analysts. While I am not sure how they are measuring this, a quick look at Dell’s web site prominently features many systems (mostly desktop) with AMD processors are excellent prices — not looking to ‘weak’ to me in light of that,” White writes.
Full article here.
MacDailyNews Take: If you’re going to blog about stocks, if would be helpful if you understood the market in which the companies you’re covering compete, Mr. White. Now for some actual facts:
According to IDC, Apple’s U.S. unit shipments posted 16% growth in Q2 2006 vs. Q2 2005, HP grew 15.5% during the same period. Dell showed only 6.4% growth during the same period. In February, Apple pushed Dell down into second place in the European education market, taking the #1 spot with 15.2% to Dell’s 14.7% (HP in third with 14.2%). And this was with Apple still in the middle of the Intel transition. Quite obviously, Dell is feeling serious heat from Apple. In addition, Apple’s OS-unlimited Macs are very competitively-priced to Dell’s and HP’s OS-limited boxes; often, Macs are considerably less expensive than comparable Dell and HP PCs. Apple’s current market value is $64,076,458,560. That’s $11,761,188,140 more than Dell’s value. Lastly, AMD processors now lag behind Intel’s processors which now power all of Apple’s Macs, that’s why Dell’s AMD-based PCs are “weak.”
Dell cannot compete with Apple’s new Mac Pro price or feature set – August 15, 2006
Apple Mac Pro with/ 20” Cinema Display less expensive than Dell Precision 690 sans monitor – August 10, 2006
Bear Stearns: Apple’s new Mac Pro, Xserve pricing well below comparable Dell systems – August 09, 2006
IDC: Apple Mac attained 4.8% U.S. market share in Q2 06 – July 19, 2006
IDC: Apple Mac sales outpace industry average in UK and Western Europe markets – June 09, 2006
Apple passes Dell in market value – May 02, 2006
Apple Mac is #1 in European education market, pushes Dell down into second place – February 03, 2006