“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.”
Related articles:
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
Yea people will contiune to buy 399 pieces of junk and have allot of problems with it and then they have to be on the phone with tech support and then the computer crashes all the time. YOu get what you pay for a cheap PC will cause you more pain and headache then the higher priced mac.
I just love the way people say that thier pc is so much better because it was $300 cheaper then the Mac. It looks like crap it is crap. Plus if i tote around a laptop no way am i going to buy a $400 laptop that weighes 8 pounds and is 2 inches thick and is crap. I can get my macbook pro that is better runs windows and mac and any other OS i choose it to and its 1 in thin and 5 lbs.
Quote: “Is Dell, Inc. really in that bad of shape?”
WHAT THE F-CK?!?!?!?!?!??!?!?!?!?!?!?!?!?!???
Jeezus H. Keerist on a stick — I’m only 40 and this galls the SH-T out of me! Who in the F-CK teaches these people how to construct and write sentences????
Is Dell, Inc. really in that bad of shape? In that bad OF SHAPE?!?!?!?
Shouldn’t it instead be something like “Is the shape that Dell, Inc. is in really that bad?”
-or-
“Is the condition of Dell, Inc. really that bad?”
-or-
SOMETHING?!?!?!?!?
Even when you don’t consider the fact that HP’s leadership is in a sh-tload of trouble, this guy’s a moron of the biggest kind.
Just proves that everyone with an internet connection thinks they’re a journalist.
You truly have a grasp of the English language, but I do have one question. I have never put a comma before the company name and Inc. in my life. Please explain this proper use of a comma after the the company name and before Inc. please.
“laptop that weighes 8 pounds and is 2 inches thick and is crap.”
See personally I’m not going to tote one which is 5 pounds and crap.
Where’s the Apple 3 pound ultralight notebook? The smallest lightest notebooks in the world are PC notebooks.
The fastest notebooks in the world are PC notebooks.
Where does that leave Apple? The prettiest notebook in the world?
“YOu get what you pay for a cheap PC will cause you more pain and headache then the higher priced mac.”
Real world experience does not actually bear out that hypothesis.
Mikey needs to sell the company and give the money back to the shareholders. Do it now while it’s still worth something.
The PC companies and M$ seem to have some issues with the burdens of backwards compatability. Not being able to drop the old eventually rases the cost while decreasing the functionality and stability. PCs still come with parrellel and serial mice ports. It took Dell until 2 years ago to start droping the floppy drives. They also use the ancient and limiting technology of BIOS. The chalange to M$ is even greater. They have an increasing variety of cpu’s and chip sets to support. Local optimization has ity limits.