Should Apple buy beleaguered Dell?

“Almost everyone knows that Apple is sitting on a huge pile of cash, around $24.5 billion. That might be enough to fill one of Scrooge McDuck’s cash vaults, but there have to be some other interesting things to do with that much money,” Frank Fox writes for Low End Mac.

“While feeling depressed about how low the value of Apple stock has fallen recently (below $90 per share), I checked out some other companies that are falling due to the same economic worries. There I saw the perfect company that is finally cheap enough that Apple can buy the whole thing: Dell,” Fox writes. “That’s right, Dell has a market capitalization of only $18.55 billion. Apple can buy it and still have money left over.”

MacDailyNews Take: You could’ve just read MacDailyNews last month: Apple could buy Dell outright; Mac-maker has more cash on hand than Dell is worth – October 21, 2008

Fox continues, explaining that Apple should buy Dell for “total shock value,” for help getting a foot in the door in enterprise, and for a brand that Apple “could use for selling low spec PC with Mac OS X installed without diluting its own brand value.”

Full article here.

74 Comments

  1. Why? This makes zero sense. If Apple really wanted to bash their way into enterprise, they could license OSX to Dell and MAKE money instead os spend it. If they wanted a low-end PC. they could make one for a lot less than $18B. Simply plop a MacMini into a slightly expandable case.

  2. WHAT A STUPID IDEA. Why not just put your cash on fire?

    Dell and other PC vendors are competing against each other. That benefits Apple. (Divide and conquer.) Why in the world would they want to waste such a huge chunk of cash to give HP a Christmas present?

    And since when did Apple want a big entry into the enterprise, and was unable to get it on it’s own merits? When they really try, they succeed!

    Apple’s stockholders don’t want Windows machines. Why should Apple buy a bunch?

  3. Yep, I can hear the conversation in the Cupertino board room going like this;

    #3: “Hey, DELL is doing quite poorly.”

    #4: “Oh. Well let’s spend most of our cash by purchasing this failing company.”

    Others: “Yes, yes!” “Good idea!” “Let’s invest most of our cash in failure!” “Hear hear!”

    Sound like a typical Apple move?

  4. I’ve forgotten if Apple could buy Adobe, but if they could, then they should.

    That would mean that they could build Photoshop and Illustrator into iLife – and charge more for upgrades/new discs.

    They could also hold onto PDF software for as long as it takes for PCs to be crippled. They could encode PDFs so that Windows couldn’t read more than 3 images in one file, for instance. Mind you, they could do that anyway.

    Adobe: Bought: One less company being late with Mac OS X software releases. Sounds like sense.

    Of course, they probably won’t, but I think there are opportunities.

     Think Different.

  5. Buying a PC retailer when Mac is a best seller? What for? Dell should shut down and give the money back to its shareholders… period.
    There are lot better stuff to buy… and better servers manufacturers… Sun Microsystem would be much more shinny to get under the hood!

  6. The question posed is incomprehensibly silly – why on earth would Apple want to buy Dell? Dell is running itself into the ground and is headed towards increasing irrelevancy; there is nothing that Dell has to offer Apple. To pose this question as a hypothetical is just a waste of everyone’s time. Apple would never buy Dell and there is no reason to even contemplate a scenario where this would happen.

  7. Agreed, buy Sun, atleast they are a tech company. Besides if Apple were going to buy a manufacturer, wouldn’t they buy the big 3 north american auto makers????? They only need another 500 million.

  8. apple should stick to their game plan.
    1. That $24.5billion is going to get them through the economic mess so they don’t lose workers in all areas.
    2. There is nothing that DELL has that apple wants. Don’t say market share, cuz then all those windows machines that fail are then apple’s headache. BAD BAD.
    3. Apple is doing just fine. The stock share does not translate how the company is doing in sales and performance.
    4. DELL sucks period.
    5. Well Apple is doing just fine. They sometimes come out with a redefining product, or just make the ones out there just that much better that makes you feel good that made a cash worthy purchase.
    6. Dell suck period.i got in trouble at work for bring in my own mac mini to replace my dell desktop given to me. and my supervisor got pissed cuz i was able to get all my work done and he didn’t, what an asshole.

  9. God sakes!!! All this idiotic crap about Apple buying this or that! DELL!!! I mean crap like this getting airtime is one of the downsides of the internet, if it was only a print world the only rag that might print it would probably run the story next to the latest Elvis sighting..

    Why not try and buy mcDonalds, or Woolworths or thick woolie socks or Ann Summers (similar logo?) its just tedious fucking bollocks!!!

  10. Good grief. Citibank gets bailed out; Obama promises record deficits; housing prices sink further and all this guy can think to write about is Apple buying Dell? Looks like November unemployment claims will be 500,001 when this clown is factored in.

  11. I think buying dell does not exactly means buying the crap computer maker, it means buying DELL’s market. Where ever there is a DELL customer, it automaticaly became a Apple’s customer, so then they just star selling the upgrade of a Dell PowerEdge4600 for a Apple OSX server and the same with desktops and work stations.

  12. So Apple could sell low end PCs and get into the server market? Big friggin’ deal. Apple could accomplish the exact same feat by licensing OS X to Dell, having nothing to do with Dell’s facilities, employees, problems, etc., and very likely make more money.

    That doesn’t mean licensing OS X is a good idea either.

    Just because you have money to spend doesn’t mean you should spend the money you have. That’s a big reason we’re in this economic crunch to begin with.

    Just ask Mike Dell.

  13. Oh, please! Is this “Smoke some bad stuff and write a column day”? These same notions keep popping up like carnival heads:

    Buy Sony… even though they haven’t had a winner in years
    Buy Adobe… even though Apple could develop better products with a far smaller investment and make Adobe irrelevant
    Buy Dell… but Apple no more buys junk than it sells junk
    Buy GM… though it carries untold billions in unfunded pension and medical care obligations and burns through money like a wildfire through drought parched forest

    Then there’s Sun… which at least has a place in the server room, but despite its technology gets little respect because it can’t seem to make any money. I’d say “buy it” so I could finally get rid of my shares, but it makes little business sense for Apple. (HP or IBM could buy it and put it out of its misery, but there might be anti-trust implications.)

  14. <b>W H Y ? ! ? !</i>

    Microsoft is in Dell’s future anyway.

    Just think about it, Ballmer. Buying Dell and Yahoo would give you complete control over the user experience. You’d be Apple as only MS could do it!

    Oh be sure to borrow LOTS of money to make it happen. Deals like this take time to work, you know.

  15. I may not like their choice of computer manufacturer or operating system, but Dell’s corporate customers are not brain dead. Simply putting a Dell logo on a Mac is not going to fool them. If there is a real opportunity to sell into the enterprise Apple does not need Dell.

    Michael Dell’s net worth is also nearly Dell’s market cap, and I don’t see him putting in an offer…
    ” width=”19″ height=”19″ alt=”tongue laugh” style=”border:0;” />

  16. @ Driver:

    Not only do I remember Power Computing, but in the corner of a back office I have one of their Power Center 210s (we use it for legacy access to SCSI devices and storage). I have to take exception, however, to your characterization of it as a “low end” box maker in the same league as Dell. Power Computing made very good machines that consistently received good reviews. Heck, the one in our office is ten years old and is still running.

    What killed Power Computing wasn’t the quality of its systems, it was Steve Jobs’ decision to pull the plug on the MacOS licensing program. As it turned out, that was a good move for Apple, but I was sad to see a good company get left high-and-dry.

  17. Should Apple buy beleaguered Dell?

    In short: NO.
    In long: NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO
    OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO.

    (gag shamelessly stolen from Zero Punctuation’s review of “Spore”)

  18. OK, we all agree. This idea is idiotic.

    Now what do I think Apple WILL spend a bunch of reserved cash on in the coming year?

    Overturning Prop 8.

    They threw 100k at it last time trying to stick their nose into something they had no business being involved in, and it wasn’t enough. This time, Steve will write checks for millions to prove there is no separation between business and state.

    You watch. It will happen.

  19. Who would trash away his/her money??

    And for “there have to be some other interesting things to do with that much money,”

    One is not writing about it; another one is not talking about it.

    Dear MDN, try not to bring to the fore that kind of crap items. Trash it away.

  20. I’m nuts but Apple buying GM could be a good thing for all of us. It’s going to take a company like Apple to produce interesting American cars for a change. Probably they’d be twice as fuel efficient and Apple already has experience in aluminum manufacturing. Flying cars, jetpacks, whatever.

  21. If Apple were to buy a company to get into Enterprise, gain a great patient collection, great engineers, server hardware, and software… including things like Java, ZFS, Solaris, and server hardware that makes Dell’s stuff look like crap…. they should buy Sun! Current Market Cap… $2.36B

  22. Dell got where they are by first innovating in custom building machines to order, and then they lost their lead by trying to save money on customer service and degrading their quality.

    It would be rather stupid for Apple, or any other company to buy a competitor just because they can. Dell has nothing to offer; their position in the market is eroding, and their products are utterly mediocre.

    -jcr

  23. Is everyone so dumb that they don’t remember Power Computing?

    What killed Power Computing wasn’t the quality of its systems, it was Steve Jobs’ decision to pull the plug on the MacOS licensing program. As it turned out, that was a good move for Apple, but I was sad to see a good company get left high-and-dry.

    Actually I think if you guys go digging around you’ll find that Power Computing isn’t dead, it’s just resting in the Patents and Trademarks department at Infinite Loop.

    Apple paid $100 million in AAPL stock to buy the company in September 1997.

    So, if SPJ wished it to be so, Apple could re-invent the cloning business with Power Computing as a “diffusion” or entry-level line, devoid of iLife and other bells & whistles and possibly even running Tiger, instead of Leopard (and eventually Leopard instead of Snow Leopard).

    Then all it would need would be a box assembler: even then, there are cheaper options than buying Dell. Use Lenovo ferchrissakes.

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