Join Date: 02-04-2005
Location: Another Web Site
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 0 Post(s)
Reputation Power: 22
Re: Apple's market value surpasses Dell
Hmmm.... I am looking all around for more information, but it seems that most companies have not yet released CQ4 numbers that are pretty crucial to a consumer oriented company. Apple announced 5.7 bn in revenue for the quarter, but Dell has not yet announced.
In the end, I would assume that Dell has the larger revenue stream, but piss-weak margins. Plus, the areas they are expanding to are also VERY razor-thin, i.e. plasma TVs. Their saving grace is their professional services arm, which is traditionally VERY margin rich.
On the other hand, Apple typically commands a higher price for their products, and until very recently didn't have a "direct" competitor technology wise (PPC vs x86). But it would appear that their new Mactel laptops and iMacs are going to have very close price parity with Dell and HP, which gets consumers in the door. I would venture to guess that Apple is willing to let a little margin slip to get more Macs in homes to go along with their very margin rich iPods, which in turn also drives up "Pro" mac sales a la G5 and XServe/XRAID. Don't forget all the other accessories that Apple makes a killing on, such as the 10% iPod tax.
Also, being in the IT sector I can already tell you that a LOT of hard core geeks are just drooling over the possibility of a dual-dual-core desktop screamer machine running OSX with some type of windows emulation or VMWare. The nirvana of bulletproof UNIX under the hood with the sweet GUI, and gobs of desktop apps is close at hand. Plus Apple's machines just LOOK cooler, which is a huge deal for the Alpha IT Geek. Don't be surprised if you start seeing the Mac slowly showing up in the Corporate Arena, albeit under the radar.
The other area Apple can really start to compete in is the CPU intensive workstation space. Once the Mactel workstation comes out, with a 64 bit clean OS, and the ability to run Windows apps in some kind of jail, they will begin to penetrate that revenue and margin rich environment as well. Think high-tech R&D, bio-tech, pharmaceutical, and energy.
I guess what I am getting at is that Dell is aiming for the consumer area, where CE companies have already made the margins unbelievably small. Apple on the other hand is letting the Dells, Sonys, and Samsungs of the world have that, and are instead aiming squarely at the margin rich professional computing space... and doing it with a product line that is quickly becoming second to none. This in turn raises profits and dividends.