Apple’s notebook computer business more valuable than HP’s and Dell’s combined

Apple Store“Based on our Discounted Cash Flow (DCF) analysis of the notebook PC businesses of Apple, HP and Dell, we’ve estimated that Apple’s notebook business is more valuable than that of HP and Dell combined. Apple’s higher valuation is driven by three factors: (1) higher average notebook pricing compared to HP and Dell (2) growing market share (3) higher margins (making Apple notebooks more profitable),” Trefis.com, a new financial platform that lets you see how a company’s products impact its stock price, reports via Seeking Alpha.

Notebook PC Valuation
• Apple: $22 billion
• HP: $12 billion
• Dell: $6 billion

Key Valuation Metrics

Read more in the full article here.

MacDailyNews Take: Here’s what we wrote last April in response to the cavalcade of fools calling for Apple to produce a low-cost “netbook” to “compete” with all of the other low-cost “netbook” peddlers out there:

Little Mikey had a lemonade stand. Okay, it was a kiosk. He sold 100 (8 oz.) cups yesterday for 10-cents each. He spent 11-cents per cup for artificial lemon flavoring, corn syrup, and the paper cups. He used tap water because it was free. Threw it all together in a big plastic pail. He’s out a buck for all of his trouble. Boy, that was a lot of work for less than nothing!

Around the block, little Steve runs a lemonade stand, too. It’s all blond wood and very clean. He sold 50 (24 oz.) glasses yesterday for 50-cents each. He spent 20-cents per glass on fresh-squeezed lemons, pure cane sugar, spring water (mixed with the utmost care), and some very nice glassware (he buys in bulk and gets a good price). He took home $15 yesterday. He’s currently building his newest stand right where Mikey’s used to be.

Macintosh. You get what you pay for (and part of what you’re paying for is a healthy Apple, able to conduct proper R&D in good times and bad, that produces innovative, high-quality personal computers that satisfy customers like no other).

[Thanks to MacDailyNews Reader “GetMeOnTop” for the heads up.]

45 Comments

  1. It sounds like Dell is losing money on each unit sold. They’ve traditionally lost money on the low-end units, but made it up with increased purchasing-power with component suppliers and better margins on the more expensive models. Now it’s just a net loss for the whole product line.

  2. Some one once said online a while go, “stack ’em high, sell ’em cheap!” that mentality is dependent on high volume sales that are not always present; that’s why apple has remained strong and isn’t as vulneriable to recessions as other companies.

  3. Nonsense. Another MAC astroturfer is playing with numbers to prop up a dying product. Computers are just tools to get the job done so it doesn’t matter whether you use Windows or a Windows-wannabe like MAC. Besides, Windows is just like MAC so why would anyone spend hundreds of dollars more for the same thing? Smug elites who don’t know anything about REAL computers, that’s who.

    Your potential. Our passion.™

  4. Apple computers are pricy, but when you sell them you get a nice price for used models too. I purchased my PB G4 1,67 dual layer (second hand) 2,5 years ago for 900€, I’ve sold it recently for 400€, still a nice price for a nearly 4 year old PB. The same with my previous early 2006 IMac, sold for 800€. People should take that in account and subtract the possible rest values for the mac computers.

  5. The missing part of MDN’s analogy is Steve also did more research into different types of lemonade (pink,strawberry blend, kiwi, raspberry blend); invested in lemon groves and bypassed middle men lowering costs while improving quality and variety.

  6. Zune Tang just doesn’t understand the concept of“ total ownership costs of a product ”. This involves buying the product, antivirus software purchases, maintenance over the life of the product, and costs associated when the product is broken. Macs last longer, have zero problems associated with malware & viruses, which means more uptime. A tool that’s broken is a useless tool when it’s broken. I’ve often wondered how many high priced sales people wasted hours of time when a PC got infected with malware/software or just crappy operating software. What does that cost ???

  7. ZT, good to have you around. We’d so much rather hear from you than that retard “I’m a FeeCee”.

    @DH – ZuneTang is our resident satirist. Like your weird uncle, you learn to love him despite his flaws.

  8. Dell and HP are losing money because they just copy (like microsoft) everything apple does. So apple says :”I’m going to sell my laptop a little lower because I will profit in the software”, so dell and HP do the same, but they never noted they don’t make software to profit on. ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  9. Hi Chrissyone, I mean Zune Tang.
    For every netbook sold, a Windows laptop
    purchase either gets postponed or never sold.
    The Windows laptop market is undercutting itself,
    regardless of how many zillion they sell. They are
    pcs of junk with very low specs.
    Apple, THANK YOU so much for not making a netbook.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.