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AAPL Stock: 97.03 ( -0.16 )

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Apple: next Dell or Gateway?

updated 08:35 pm EDT, Fri April 7, 2006

Fool analyzes AAPL future

Apple could end up as the next Dell if things go its way or as the next Gateway, if its luck runs out, according to a Fool.com column. Based on calculations, the columnist says that Apple's stock in 2011 could be worth as much as $137 -- or double its current value. "Dell is strictly a hardware company, dependent on a hyperefficient supply chain. Apple, on the other hand, is a systems company that depends on software. Apple has long been known as a premium supplier. Dell? Not so much. Yet in spite of these obvious differences, Dell and Apple have come to resemble each other much more than in years past. For example, Apple is now a price- and brand-conscious supplier whose goal is to move volume (witness colossal iPod sales). To me, that sounds an awful lot like Dell in 1998, especially when you compare that year's hypergrowth PC market to the equally hot market emerging in mobile media." The column concludes that that "Apple may end up as the next Gateway. Or it may be the next Dell. Personally, I think the latter is much more likely."




by MacNN Staff

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  1. dashiel

    Joined: Dec 1969

    0

    neither

    i don't think you can compare apple to either company. dell is just a highly efficient manufacturer, excellent supply channel management and ruthless negotiator in terms component suppliers. gateway is just a soon to be out of business box maker. both companies could be marginalized and eliminated in the blink of an eye. gateway is already on its way out and dell, well as soon as someone decides they want to make even less profit per box than dell they will disappear too.

  1. kw99

    Joined: Dec 1969

    0

    If it was a choice

    between ending up as "the next" Dell or Gateway, I rather be Gateway. I didn't bother reading the actual article, but this is one of the dumbest opinions I'ver heard all year.

    Why in the world would Apple end up as either like Dell or like Gateway, as if those were the only possible outcomes. Apple is aiming toward consumer electronics and enabling media content distribution; neither Dell nor Gateway have anything significant along those lines. But it's much more likely that Apple ten years from now will be like nothing that can be predicted today. The iPod has only been out there for a few years; could someone have predicted the appearance and impact of that product ten years ago?

  1. clbell

    Joined: Dec 1969

    0

    My opinion

    If that is to happen then I think they will have to lower the cost of their machines quite a bit. Face it, most people just want a cheap and decent machine. Dell is the McDonalds of the computer world. Chick'FilA will never have the market of McDonalds even though it is a very well run company with a great product and consistent quality.

    Dell makes a lot of money selling machines to businesses and I think they will continue to do well with that market.

  1. bokubob

    Joined: Dec 1969

    0

    good article

    The MacNN summary kinda misses the point, and the MacNN title is way off the point of the article.

    The article itself is well reasoned, and well thought out. I agree that boot camp is effectively a strike at pc makers such as dell, and I'll be interested to see how it plays out.

    Read, think, post comment. -Jonathan

  1. lamewing

    Joined: Dec 1969

    0

    Didn't read the article

    HOW can you offer any opinion without taking the 30 seconds to read the article? Why go to the trouble as your comment will be of little, if any, use?

  1. eswinson

    Joined: Dec 1969

    0

    more like sony

    I bet more like Sony. A strong consumer brand across multiple categories and overwhelming market presence.

  1. just a poster

    Joined: Dec 1969

    0

    DELL yuck

    Hopefully the author means "the next DELL" in terms of size, not in terms of quality.

  1. henk

    Joined: Dec 1969

    0

    neither

    Perhaps the volume of apple's business could grow exponentially over the years as long as apple stays ahead of the pack in marketing a full package, including superior software as it is doing today.

    Apple could never become a Gateway nor a Dell in that both it's product range and added value are more important than the 'boxes".

    Apple delivers a total experience in personal computing.

    In this context, I don't want to get into the Dell or Gateway "experience", but I think most of you understand what I mean...

    Apple should go on doing what it is doing today, quality will prevail in the end...

  1. Feathers

    Joined: Dec 1969

    0

    comparisons?

    Er...couldn't Apple just be the next...Apple? Drawing comparisons from and within the same frame of reference is pointless. It would be more helpful to suggest that Apple might become either the Tiffany's or perhaps, the Sears-Roebuck of the computer industry.

  1. Harry Schaefer

    Joined: Dec 1969

    0

    quality the difference

    I run both macs and pc's. I made a mistake of switching in pc world from IBM thinkpad to dell. No comparison in quality and would have moved back to IBM but not sure with new owners. Increasingly with networking I can work in both domains except for the occasional need for windows. Now I can do the exception with a mac. The delay in windows shows how MS is being bogged down with needing to conform to a lot of demands. Mac has been able to destroy its own products in Ipod rather than letting others do it. Their ability to be fleetfooted quality oriented will be the trade mark of the future available for most discerning users

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