How can Apple be worth more than Dell?
updated 08:55 pm EST, Fri January 20, 2006
Apple vs. Dell redux
Despite the enormous size of Dell, Apple's growth possibilities, tantalizing to investors, are probably the reason it has surpassed Dell's marketcap. A new BusinessWeek blog posting looks at How can Apple be worth more than Dell?, concluding that Dell is limited by its size, while Apple can achieve growth with relatively quickly: "But if you don't have big honking growth markets waiting to be harvested, size can be a heavy anchor indeed. The math is simple. To deliver 15% growth in the upcoming year, $55 billion-a-year Dell has to find $8.25 billion in extra sales. But Apple, at $13.9 billion in overall sales, would have to find just $2 billion....So if Apple gains a point of market share this year--not a pipe dream by any means, especially given the Intel transition--Jobs & Co. will have already found the fuel for that 15% revenue growth year. And that's without any iPod sales growth."
Fresh-Faced Recruit
Joined: Jun 2002
It's not real money
Apple can be worth more than Dell for the same reasons that Google is worth more than GM - they're reasons that I simply don't even begin to understand, but there you have it - a company with a few thousand employees producing nothing "tangible" is worth more than a company with a few hundred thousand employees that produces actual real things in actual real factories.
Hmmmmmmmm
Roger