“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.
This is about Dell innovating for our customers…
HAHAHAHAHAHAHAHAHAH…
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….
I can’t believe this, particularly the last line.
Is he on drugs, or that desperate?
What goes around comes around…….
MDN: iCal’ed – I love it!
“Dell could be the primary counterweight”
Also known as a boat anchor.
“Am I making too much of this?”
“I don’t think you are.”
“Hold me.”
It’s not business, it’s personal.
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.
Who in the hell comes up with those names? ZING? ZUNE?
I zing my zune to zap my zip
> 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.
What a blowhard!
Even to a degree that rivals Lindsey Lohan.
RIP Zing…. dead before it even launches.
All bow your heads for a moment of silence please.
The Dude abides.
The only thing CLOSED about “Apple’s closed digital media model” is the labels who refuse to offer their content DRM free….
…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.
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?
I heard that Dell is also working on the iZingaling to compete with Apple’s iTele.
The only way this will get marketshare and traction is if they give it away with each Hell sold.
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.
Wow, that last one, talk about a loaded question….
LOL
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
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.
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)
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.”
“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…..
“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.
I can’t believe Buster actually saw a Zune in the wild.
Dell’s revenues are increasing but it’s margins are still shrinking—8.7% in the last quarter. (Apple’s margins are >30%!)
Dell was very innovative in squeezing the supply chain and manufacturing efficiencies. (But now everyone else has figured out how to do the same thing and they are all still completely dependent on MicroSoft.)
As far as innovating in hardware or software, not so much.
I wouldn’t count Dell out of anything. They didn’t beat everyone else in the 90’s because they are dumb. They are just egotistic, arrogant pricks. The culture is one of exploitation, yes men, and obscene work hours. If anything, they have an advantage. They have been knocked on their heels a bit and are now dealing with an environment where they have no expectation of success. Even doing one thing right will bode well in the press. They also have a pretty sick distribution model. They can dump a piece of software on 1 million computers a day. Even at a 1 % adaptation rate, thats a lot of users. They also have a business model that keeps them involved and makes their partners a lot of money, although a bit unhappy. In essence, their business model is similar to today’s social networking/web 2.0 trends, they have just been doing it longer and focus on delivering the hardware rather than the software. Apple really needs to fear them doing it kind of right. Apple could fix iTunes. Let’s be honest, it sucks. Wrapping a web browser with quicktime was OK 5 years ago. But, actually making a software that was user friendly and easier to navigate makes sense now. I’m just sayin, they are kind of complacent on iTunes.
“This is about Dell innovating for our customers.”
“they are doing a great job evolving our consumer strategy and driving personalized technology and entertainment experiences to consumers.”
When Michael makes Ballmer-isms like that, I know Apple has nothing to worry about.
BTW – How exactly does someone interview a person by email?
Shen,
You’re completely right, and I wasn’t fair to Dell. They are indeed skating to where the puck is no longer. It’ll be fun to watch Zing and Zune duke it out…
“They are indeed skating to where the puck is no longer.”
Fooled again by the pagan trickster.
What a way to screw themselves over. MS with its stupid Zune, and now DELL with its stupid Zing. If they call it that, and I hope they do.
Tis true Tommy Boy….I was actually excited and when I held the Zune in my hand I was in awe. Awed that it was thick as a brick, awed that it was shit brown in color. awed at the silly looking buttons and awed that it actually turned on without freezing (I had low expectations).
It is sort of like finding a four leaf clover…but without the associated luck windfall.
Oh…and the wilds I found it in was in New Jersey…
Zing Zune….otherwise known as ZZ Flop. What a bunch of maroons. Yes, we saw subscription music…duh. Now I bet a whole range of devices, disposable, portable (as to the portapotty) that are…wait for it (cue the drum role)….yes SUBSCRIPTION devices. You don’t buy them, you rent them…just like you can do with cars and carpet vacumm cleaners, which by the way will be made by Microsoft, finally a product from MS that won’t suck.
They already made the first mistake with Ron Garriques. Michael Dell thinks he’s somebody special because he oversaw the rollout of the Razr (the creation of which he had very little to do with) and then jumped ship before the boat completely sunk at Motorola. It’s his complacency as the leader of Motorola’s cell phone division that led to the collapse, the belief that he could spend years just tossing out the same Razr with incremental improvements. Couple it with the enabling of his equally lousy former boss Ed Zander and you have the end of Moto as we know it.
I wouldn’t hire Ron Garriques to paint my car. It’s great news for Apple, though, that this loser is in charge.
I dunno. Lets wait and see what happens when Dell executes. Who knows.
Maybe it might not be so bad. I guess we’ll see.
I must admit though, whats up with these silly names? Zing???? You would think they would have tried to distance themselves from the even dumber name of Zune.
I have always loved the fact that people believe that adopting Apple products “lock you in to a closed system” while adopting Microsoft products is this amazing free and open system. In the past I’ve tried to point out people are just as “locked in” to Microsoft as they would be to Apple, but they haven’t been able to see it.
Vista has changed that. Vista has shown that you may have 6,731 PC “manufacturers” but you still have only one Microsoft. Microsoft tells you to move to Vista and you have to do it. Customers don’t want Vista. “Tough shit. Vista is the most advanced operating system we’ve ever made and you are going to like it.” Want to keep shipping systems with XP instead. “Tough shit. We’re discontinuing XP sales in favor of Vista.”
Talk about a closed, locked in system.
Microsoft. Our system is your prison.™
Dell “innovate”? Another oxymoron for the ages.
@Mr. Reeee:
“closed digital media model”?
This is the only way (probably) to make the record industry play along. They hate open, they only care about control and money. Just ask Middlebronfman. He’ll probably want a stake in Dell just to join in, so his boy Lyor can continue to cash out stock options and build his mansion in the Hamptons, while the artists and employees suffer.
Some funny comments here today – made me laugh, thanks guys!
Its impossible to understand how any person with a functioning brain could pick a name like Zing.
It sounds like son of Zune, which is NOT a good thing.
Dell and all the micro$oft concubines have this RDF going where they actually believe that M$hit sold 2 mil. zunes – which they didnt.
They believe that saying stupid things about Apple will help them – it doesnt.
They believe that everyone wants to send shit from device to device – we dont.
They believe that subscription is the only way – it isnt even popular with the few fools who have it.
Dell will be gone/bought out within 5 years.
iCal it for sure.
If Apple bring out a nano phone (which I think is a possibility), the MP3 gamr is over – who will buy an MP3 player when for the same price its also a phone?
Peter Burrows & Michael Dell
Kinda says it all
Michael Dell is an idiot. The music labels are unlikely to license Dell to allow sharing. These days the labels are looking to maximize profits anyway they can and Dell is going to need to give them the farm and shovel their sh*t to get any deal at all.
I know Dell doesn’t like profits but this little venture is likely to end up with Dell doing a freebee. They be better off just donating the money to the labels.
@Predrag “Skating to where the puck will be…”
Apple is hitting the puck. Not only are they hitting the puck, they are defining where the goal is.
Apple’s got the the golden goose and it’s laying golden eggs…
If Dell is incredibly smart they may manage to scoop up a bit of golden goose shit…but that’s about all…
“Apple is hitting the puck. Not only are they hitting the puck, they are defining where the goal is.”
And Dell is waiting out a misconduct penalty while HP is beating the crap out of Acer up against the boards. Microsoft is trying to bribe the ref and Real and Napster are pleasuring each other in the stands with a foam finger and a hard pretzel.
Given this is the same man who’d like to trademark ‘cloud computing’, guess any ideas from outside of Dell looks good.
Someone should tell Michael Dell to clean out his bong once in a while – or change dealers immediately.
@Chuck
“Apple could fix iTunes. Let’s be honest, it sucks”
I will be honest, iTunes is fantastic, nothing else comes close. How much “easier to navigate” do you need? I honestly don’t know what you are talking about.
And if you really think Dell is a threat, I strongly disagree, Dell are box shifters, no more.
Life would be very boring without people like Michael Dell.
It’s a lot more fun picking on him and Gates, Ballmer, Dvorak, Enderle, etc., than it is just reading boring old stuff about software updates (no matter how snappy they are).
To the person that doesn’t like iTunes:
iTunes is Apple’s killer app, it has enabled Apple to sell iPods, iPhones and Apple TVs. Just look at the general lameness that preceded it, winamp please.
Whoa, I was at a computer forum and a hockey game broke out!
Kudos on the vocab MDN.
Never thought I’d see the word charlatan used again! Ha ha ha… Perfect word for Enderle though.
Congrats, you guys are doing a great job here. Hysterical stuff.
–mAc
Does this mean we now have to endure Zing Tang too? Actually, that rolls of the tongue nicely….
Re: Skating to where the puck has been…
I, for one, don’t believe the stand alone MP3 player market is dying…. not as long as Apple continues this ridiculous policy of only building iPhones for the crappiest network in the country….
I have an iPhone now, and I can tell you, now I know first hand why AT&T;ranks LAST or SECOND TO LAST in EVERY region of the country for network quality according to BOTH Consumer Reports AND JD Powers…. Their network absolutely BLOWS!
As soon as my contract’s up, I’m getting a Touch and off to Verizon I go…. I’d rather have a Touch and a simple cell phone, rather than an iPhone that can’t even keep the call up! (and I have the first iPhone, not the 3G w/ the crippled Infineon chipset – why oh why would Apple be stupid enough to not use a Qualcomm chipset???)
MW: works – as in ‘a Qualcomm chipset works’