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August 18, 2006

rivals

Taking a 51 percent nose dive

Posted Aug. 18, ’06, 7:52 AM PT by Derik DeLong
Category | Apple » Rivals

Dell Dell’s been taking a lot of abuse in the media over comparisons between the Mac Pro and their Precision workstation. They may still own the low end of the market where nearly none of the profits are, but they’re not so hot elsewhere.

To make matters worse, its net earnings have dropped 51 percent. On the other hand, Apple has been beating expectations and getting stronger. Dell is already operating on razor thin margins with its bread and butter, the low end and any attempt to squeeze more money out there will make them lose market share.

Conceivably Dell could try to reclaim profit by lowering prices on their high end stuff to better compete, but are they willing to drop about a grand off their workstation to compete with Apple (and then still lack Mac OS X compatibility)?

Even worse, like Apple, they’re performing an internal investigation to comply with the SEC. I see very, very rough times ahead for Dell, particularly if Apple continues to be aggressive.

[Thanks for the tip macnuke!]


1 Comments

macnuke said:

welcome 8-)

now that the pressure is on.. from everyone from stockholders to the SEC, it's going to be very rough.
MacPro beating the pants off the top end, dropping the price to be competitive is what got them in this to begin with.
it's a killer for them.
they will still be around, but I think soon they won't be as large of a consumer player as they are now.
let's not forget that little battery recall they are undergoing right now also.

now of only Apple would introduce a mini tower.......
hope Michael has his cardiologist on standby.

August 18, 2006 2:44 PM

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