Michael Dell thinks he can rival Apple’s iPod+iTunes

“A long list of powerful companies have tried and failed to make much of a mark in the world of digital entertainment, where Apple reigns supreme,” Peter Burrows reports for BusinessWeek.

Burrows interviewed Chief Executive Michael Dell by email about Dell’s new plan. Here are some excerpts:

Burrows: To what degree is this initiative about taking on Apple? Can you make a dent in Apple’s share in iPods and iTunes?
Dell: This isn’t about Apple. This is about Dell innovating for our customers.

MacDailyNews Take: Translation: “This is all about Apple. This is about Dell not having iPod+iTunes and losing consumer PC sales to Macs because of it.”

Burrows: I understand you personally championed the purchase of Zing. Is this true? Why?
Dell: Ron Garriques [president for Dell’s Global Consumer Group and former head of the mobile-phone division at Motorola] and team deserve the credit for championing Zing—they are doing a great job evolving our consumer strategy and driving personalized technology and entertainment experiences to consumers. I’m an enthusiastic beta tester and believe Zing could be very exciting for our customers.

MacDailyNews Take: If Ron Garriques does even half the job he did with Motorola, Dell should immediately begin making plans to shut it down and give the money back to the shareholders.

Burrows: I’m told the company plans to bring out hardware devices designed to make use of the Zing technology to buy/play/share this content. How important will such hardware be for the company?
Dell: We’re watching the device space closely. Right now our focus is on testing services that allow consumers to link and share content across many types of devices and through multiple services. Consumers are seeking a service that lets them access whatever source of music or movie content they want on any device. We believe that an alternative to the single device and service model offering available to consumers today would be compelling.

MacDailyNews Take: Translation: “We don’t have an iPod killer because the only true iPod killer is the next-generation iPod. As for Zing, we have allowed ourselves to be deluded once again by outside influences, including failed Moto execs and quote-for-hire charlatans. We’ll blow huge chunks – of cash and other things – on this. Investors should be massing with pitchforks, but since I brought this company into the world, they’ll stand idly by and let me take it out, too.”

Burrows: It seems to me that if the strategy works, Dell could be the primary counterweight to Apple’s closed digital media model. Am I making too much of this?
Dell: I don’t think you are.

MacDailyNews Take: Apple’s digital media model is not “closed.” As for Dell’s response: iCal’ed.

Full article here.

56 Comments

  1. Zing, Zune, squirt whatever. I saw my first Zune this weekend….what a piece of crap when placed alongside my iPod touch. The person said he bought it for the big screen and that you could send (squirt) songs. He sounded pretty lame….

  2. Microsoft thought they would be the so called counter balance and look where the Zune got them? No where!!! Dell thinks the guy from Motorola and Mr. Underware are going to give him the edge, he’s in a total fantasy world all his own.

  3. > Dell could be the primary counterweight to Apple’s closed digital media model.

    Since practically everyone uses iTunes and iPods, the system is hardly “closed.” The “closed” (and close) integration between iPods and iTunes is why the system is so popular and successful. Even Microsoft tried to abandon “choice” and replace it with its closed system. Apple knows very well that unlimited “choice” does not lead to customer satisfaction nor financial success.

  4. …where the puck is going to be…

    Michael Dell is doing exactly what all others are doing — skating where the puck is.

    Apple’s iPod business is most likely going to die its slow death as soon as two more lines of iPhones are designed (shuffle, nano). Personal digital music player is a dying breed, since cellphones are ready to take over the market. It won’t die completely, however; it will be left to the bargain bin manufacturers, wih 4GB devices being free after $35 rebate. Apple will exit this market, and Dell will vigorously (and desperately) compete with whoever is left (Chinese forgery makers, Zune, Creative) for the razor-thin margins that these devices will be fetching. Since this type of profit margin is Dell’s home turf, they may stand a chance.

    MP3 player as a concept was an amazing idea whose time is rapidly passing. Pretty much every cellphone today has the feature. That nobody actually uses it is not much of a surprise, though. Still, it is clear that the existence of this feature in cellphones will slowly kill the market for the premium stand-alone devices. About the only one that would remain standing would probably be the one that no longer is just an MP3 player — the iPod Touch. Again, Apple continues to skate where the puck will be.

  5. The Zing will have zilch impact on the digital media market.

    Seriously, these guys still need to figure out how to:

    1. Design a decent interface
    2. Become OS independent
    3. Design some sexy hardware
    4. Integrate hardware/software
    5. Set up an attractive online storefront (i.e. not the one Dell uses.) which bypasses Explorer
    6. Standardize cell phone OSes
    7. Play nice with the telcos and MS
    8. Ditch DRM
    9. Forget subscriptions

    How hard can it be?

  6. The Z&Z;guys just don’t get it. The name and the look are crucial to the success of a device like this. It’s like feng shui or something. I wasn’t a fan of the name “iPod,” but at least I grasped the idea behind it. There’s nothing worthy in the name Zing or Zune. To be fair to those guys, car companies have a similar problem when they try to name a new car. It’s tough coming up with a name that hasn’t been used or isn’t already owned by another company. And so you get companies that misspell existing words and hope they stick. Netflix works, but I’m not impressed by Fliqz.

  7. Agree that Zing and Dell music will not last. Apple focuses long and hard on what a person wants. Dell and other PC companies just look at the puck, close their eyes and charge to where it is.

    Years ago, that worked fine. Everyone did it, so the puck never really moved, there was no one to move it.

    Then Apple started skating just a little ahead of the puck and bingo, they were there mostly first (iPod). Bang they knock the puck down the ice and skate to where it will be. No one is around when iTunes is released to work with iPod.

    BANG goes the puck. Apple again skates to where the puck will be (better iPod and iTunes and start working on iPhone).

    Repeat, repeat, etc.

    Now where the world will be in 5 years is anyones guess. I hope Apple still makes good nanos cause I have an iPhone and touch and still like the mini nano (first gen actually) for just music. Its in my pocket and working great. Works running, lasts long time and charges quickly from my portable charger.

    en

  8. It’s like those old SAT test questions: All Zaps are Zots and all Zots are Zips, but not all Zips are Zaps. Wait, I thought all Zips were Zots and…

    Time’s up; please put your pencils down.

  9. FUD from a dud.

    “closed digital media model”?
    Where’d they get that? Oh, because iTunes and iPod don’t support a proprietary Microsoft audio format, WMV, that means iPod/iTunes is a closed system. I love it.

    Have another martini, boys.

    If they change the name to the Schwinggg, it’ll give Apple some stiffer competition.

    (forgive that one, please)

  10. Sorry, MDN…Dell is not losing sales to aapl. Dell is kicking but at Best Buy and Wal-Mart plus their online store. I am rooting for Dell’s new kid on the block.

    “If you’ll recall from our Q1 earnings results, our consumer business is doing pretty well. For example, consumer revenue grew 20%, to $2.9 billion; units increased 47%—more than two times the market—and increased global share by 1.2 points, to 8.8%. [These and other positive results are] a direct result of delivering what consumers want—our new products and our focus on design and style are obviously resonating. The PC continues to be the hub of users’ digital entertainment worlds and we will continue to investigate ways to enable people to easily access their entertainment across various platforms. So Zing has the potential to be another element of our broader consumer strategy.”

  11. “Michael Dell is doing exactly what all others are doing — skating where the puck is.”

    sorry predrag, i normally like your comments, but you are wrong here.

    Dell is skating to where the puck was last year…..

  12. “Right now our focus is on testing services that allow consumers to link and share content across many types of devices and through multiple services.”

    And the music cartels and Hollywood will never allow this to happen, which leaves people “Zinging” home movies and/or music to each other.

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