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.]
The guys an idiot
“Pricing: We expect pricing to continue to decline for all three notebook makers.
Apple: $1,200 in 2009 to $699 by the end of the forecast period
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.
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.
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.™
Oh, now I see that Dell’s margin is prefixed with a tilde for approximation, not a minus sign for a loss. Still, a five percent margin isn’t very good.
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.
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.
Looks like Dell’s profit is a rounding error. They need a frigging tilde.
Mac tablet soon?
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 ???
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.
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.
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There will be a Mac tablet. It’s a larger Touch.
ZT is a bore. Those who enjoy his satire are probably very simple bores themselves.
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.
We all know this – Apple notebooks are way more profitable per unit.
What the article is not mentioning is that Apple are increasing sales. Just like with the iPod, Apple are beginning to be able to get better component pricing since they are selling more Macs every quarter.
This gives them two advantages. One – cost per unit will decrease. Two – they can slowly drop the price without affecting margin.
The result is that Macs get more affordable over time and customers that would have balked at the price may be more willing to switch. At the same time, low cost vendors get squeezed even more because the higher end units were where they made their money. With each Mac price drop, the lower end market profitability gets hurt.
When you commoditize your product there is little else you can do after you have wrung every last dime out of your supply chain and support staff to create a paradigm shift unless you start to create your own operating system to help you differentiate your product. HP used to be a vibrant engineering company with thousands of patents and thousands of the best minds working for them. It’s sad to see them plagued by the great MBA pall that has come over US corporations. For Dell there was never any hope. They were always a one trick pony and will always have to rely questionable marketing ploys to sell products of questionable quality to the uninformed masses. I’m glad in the 90’s when they raided my company for manufacturing engineering talent I didn’t get sucked into that scam.
Hi,
I’m an employee at Trefis.com – the site that conducted the analysis in the article. If you want to see more about how we forecast and over what period, you can request an invite for access to the site (it’s free) at Trefis.com. On Trefis, you can also modify our forecasts for the analysis (e.g. pricing, market share, margins) and see what the value of Apple, HP and Dell would be based on your own beliefs.
“Windows is just like Mac?” Is that why the sociopath still lurks here? No friends among his peers? What a combination- arrogance Plus ignorance. ‘Nuff said. Get a Life already!
By my count ZT snagged another two minnows on this thread.
Never ceases to amaze.
@alsoran, what are you talking about? Zune’s last post reads like hiku.
Made my day.
No, I really don’t think Chrissy One is Zune Tang…
she is a MAC DORK, like the rest of us.
Nice catch, Jim.
Hey Ampar how ya been?
chrissy uno is zune tang. it all makes sense.