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Dell CEO: Apple charges too much for mainstream

updated 11:55 am EDT, Tue April 6, 2004

Apple prices too high?

Dell CEO Michael Dell says that Apple has , according to an interview published by USAToday: "What about the resurgence of Apple (AAPL)? Steve Jobs says he sells the Mercedes of the computer business while you sell the Taurus. If you go look at where jet engines are designed, for example, you might be curious to note that more than half are designed on Dell computers. What Apple has done is build the Bang & Olufsen of the computer industry -- very nice products, but they've priced themselves out of the mainstream market."




by MacNN Staff

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  1. vvedge

    Joined: Dec 1969

    0

    Jet Engine?

    Umm... how is that an answer? or even a good example?

  1. iomatic

    Joined: Dec 1969

    0

    "Talent..."? What talen

    Will someone explain just what kind of talent is required at Dell? Cloning experts? Financial discount advisors? Return equipment specialists?

    "Me-too"-lemmings?

    WTF?

    ...

    ...

    ...

  1. klinux

    Joined: Dec 1969

    0

    explanation

    He is saying that even high-end work e.g. jet engine design, does not always necessitate using Mercedes of computing, Dell will do.

  1. MacBliss

    Joined: Dec 1969

    0

    DG5Bliss

    "...but they've priced themselves out of the mainstream market."

    And that's bad because...? we want to be associated with mainstream's boredom and mediocrity? oh, oh yeah, THAT makes sense. Idiot.

  1. gojosh

    Joined: Dec 1969

    0

    He's right.

    Apple doesn't want to be main-stream. If they did, they would cut costs. They won't. Apple doesn't have a problem with being a niche player, and neither do I. They just want a bigger part of the niche.

  1. phillymjs

    Joined: Dec 1969

    0

    Yeah, they've...

    ...priced themselves so far out of the mainstream that Dell just dropped their iPod clone by another $50 in price to try to take some of Apple's iPod sales. Despite Apple's premium pricing, they can't make iPods and Minis fast enough.

    As for computers, the tide is starting to turn. People are getting sick of Windows worms and viruses, and Microsoft's continued empty promises to fix them. Macs and OS X are getting more good press all the time, despite the best efforts of C|Net and ZDNet and other media outlets with an obvious pro-Microsoft bias. The interminable period between now and the Longhorn release will be great times for Apple.

    The only reason to stick with Windows anymore is if you're a gamer. If you just need to do word processing, web browsing and e-mail, a Mac will suit all your needs just fine, and need less maintenance. It might be more expensive, but it will also enjoy a much longer useful life than a Windows box-- especially now that version n+1 of OS X runs faster than version n did on the same hardware, while Windows just gets more and more bloated and slow with every subsequent release.

  1. cheekyjeremy

    Joined: Dec 1969

    0

    Oh god...

    look at where jet engines are designed, for example, you might be curious to note that more than half are designed on Dell computers.
    ****

    Oh god.. I am never flying again...

  1. Makosuke

    Joined: Dec 1969

    0

    Re: He's right.

    Exactly!

    I have no problem with my computing platform not being 100% mainstream, since my computing needs aren't mainstream either. I do hope Apple's niche gets a bit bigger, which I expect it will, but it doesn't need to be 50% for Apple to be successful--even 10% would be more than enough to stay stable and relevant.

    Even within the Wintel world, the same distinction exists; some people buy Dell or Emachines, others buy Alienware, IBM workstations, or custom build class machines. Within Dell's own product line, there's the cheap pieces of "mainstream" junk, but once you start buying a well-equipped workstation, the prices go way up into and beyond Apple's "non mainstream" very quickly.

    From a business standpoint good enough might be fine, but the machine I spend 1/2 my life sitting in front of is not something I'm buying on business alone--I'd like a little art in there, and I'm willing to pay for it.

    Funny, though, that Dell is getting schooled in the portable player market--Apple seems very "mainstream" there, despite get-what-you-pay-for pricing.

  1. DudeMac

    Joined: Dec 1969

    0

    Dell is the Yugo...

    ...of the PC market!

  1. lostcause

    Joined: Dec 1969

    0

    You get what you pay for

    So I suppose Michael Dell buys everything in the main stream, because everyone owns a multi-million dollar home and drives $100,000+ cars. I wish I lived in his main stream reality. People are realizing that sometimes quality costs a little more and that you have to look at the complete cost of ownership, not just the initial purchase cost.

    This reminds me of the lemmings jumping off the cliff, if the main stream is jumping off the cliff then it must be the right thing to do.

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