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"Apple should license the Mac to Dell"

updated 03:00 pm EDT, Thu October 19, 2006

Gartner on Apple, Dell

Gartner research in a bold report has stated that Apple should license the Mac to Dell and concentrate on creating software while making use of Dell's production and distribution capabilities. The firm says increasing component costs and pressure to cut its prices mean that Apple's best decision for long-term success is to leave the hardware business, according to Gartner. "Apple should leverage its close relationship with Intel and team up with Intel's closest ally, Dell," the firm wrote. "We recognize that this move would surprise and even shock many. We are aware that Steve Jobs cancelled previous Mac licenses when he took over at Apple and that he guards the Apple brand zealously."

With the right partners, distribution channels, and more affordable pricing, Gartner claims computers running Apple's operating system could eventually account for 20 percent of the total PC market, according to a report from silicon.com. The analyst believes Apple cannot significantly bolster its growth due to increased pricing pressures, however, and predicts that Intel is unlikely to continue subsidizing Apple as it has in the past.

"Apple's margins for its Mac business, currently around 40 percent, are only sustainable because component makers such as Intel choose to prop up the business," according to Gartner, who writes that HP has forced Intel to offer it comparable pricing to Dell. "Intel has been forced to restructure and, in our opinion, cannot go on supporting Apple [or any other customer] indefinitely," the analyst wrote.

Apple yesterday disclosed its financial results for its September quarter, revealing "blowout" Mac sales with higher than expected iPod shipments and a whopping 32 percent gain in U.S. PC market share.




by MacNN Staff

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Comments

  1. cherrypop

    Joined: Dec 1969

    0

    Sure thing

    Given Apple's reliability rating of over 200 and Dell's at 4 (reported here on MacNN) it's a safe bet that Apple will pass on this notion. -apple-project.com

  1. nemanirc

    Joined: Dec 1969

    0

    Reliability

    I agree with the first comment. Dell's reputation for quality and reliability is currently garbage. Adding the animosity that Michael Dell has for the Apple aesthetic, Dell would be a horrible choice of partner for Apple.

  1. l008com

    Joined: Dec 1969

    0

    Yeah

    I agree. Sales are WAY up, market share is WAY up. Apple is making Billions. This can mean but one thing. They will be out of business in a year! They better stop making this great hardware everyone is buying up, if they are to survive...

  1. bobolicious

    Joined: Dec 1969

    0

    Apples to apples...

    While my Dell experiences have been positive everything they make is PLASTIC - not even on the same wavelength as Apple's industrial design & materiality - for me the comparison stops there... Like comparing certain american cars to a european ones - windows users finally have the opportunity to run software on such beautiful equipment & lighted keyboards to my knowledge are not available on other laptops...

    The hardware side seems just as much the essence of the Mac experience as the software, and IMHO should not be licenced to Mikie...

    Apple may yet surprise the bean counters with just how far they will go with market share all on their own...

  1. suhail

    Joined: Dec 1969

    0

    Steve does not care

    Steve said it many times, he likes to make simple and functional hardware/software, and if that makes lots of money well… great if not that's also ok.

    I like that attitude.

  1. Horsepoo!!!

    Joined: Dec 1969

    0

    Conflicting reports

    Warning, warning...conflicting analyst reports incoming from Gartner. If we ignore Gartner and their S***** analysts, maybe they'll go away.

  1. rednif

    Joined: Dec 1969

    0

    Only an analyst...

    Only an analyst would make such a silly remark. I'm sure this guy (or gal) is using a Dell to write such rubish -- remember: garbage in, garbage out. Isn't it ironic that this is coming from a company that has always been negative on Apple...just how are they doing these days? Just goes to show you how reliable these "research" companies are...another thing we can do without!

  1. breneman

    Joined: Dec 1969

    0

    brilliant!

    Where is Apple's pressure to cut prices? They already deliver the best and most capable product for the money while seeking to undercut nobody. By providing a superior user experience and superior design they have increased their market share and have done it without playing the "lowest base price" game.

  1. Mr. Strat

    Joined: Dec 1969

    0

    More crapola

    Another expert speaking from an o****** not intended for speech...

  1. Will53

    Joined: Dec 1969

    0

    Krapula...

    ... means hangover in Finnish and perhaps that is what these analysts have been suffering from? Is it only me, but I think I can recognize a certain kind of hysteria among some people when it comes to everything Apple-related these days? Anything negative there can be said about the company and their porducts are blown up out of any proportions and FUD-tornadoes are brewing everywhere. Maybe these people are scared that this area of industry would return to a more normal state where you don't have one gigantic company delivering the "engine" almost every personal computer is running on, but where there would be room for more players?

    You know, sometimes I think that if Apple would succeed, maybe that would mean a new life for Sun, for instance. After all, lots of what we see in Vista is not only copied from Mac OS X, but also from a project Sun had going, something called Glass-something.

    And I would also liked to see Jef Raskin's original ideas for the Macintosh realized some day.

    But these people would perhaps get really depressed to see that happen and they will do anything to maintain status quo ante bellum?

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