Apple

A Decade of Dell Rivalry

Is it safe to say that Apple is winning?

By Victor Mihailescu, Apple News Editor

9th of October 2007, 15:35 GMT

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The Mac versus Dell rivalry has been going on for quite some time now and it likely won't stop until one of the companies is no more. Since it began, the two companies have switched places and looking back one

can almost laugh.

Ten years ago, Michael Dell was asked what he would do with Apple, which at the time was going through a bad period. The answer is one that has stuck in the minds of Mac users: "I'd shut it down and give the money back to the shareholders." Not exactly the most diplomatic of statements and not the best business move one could make, considering that even at the time Apple was profitable, if not very much so.
Shortly afterwards, Jobs answered back, publicly letting Dell know that they have them in their sights and are coming after them.
It wasn't that long ago that Apple's market cap equaled that of Dell, and today, ten years after the fateful comment, Dell's $62 billion market capitalization is dwarfed by Apple's $144 billion.

Amusingly enough, Apple actually did follow the essence of Dell's advice and gave money to the share holders, quite a lot of it. Today, the company is constantly growing, has products that have become culture icons, tops the lists for recognition and customer satisfaction, as well as being seen as the most innovative company in the entire industry.
Dell has made its fortune through the way they sell their computers, but only Apple managed to do what everyone in the entire industry said was impossible, establish a profitable retail presence. Apple has done so well that the Apple Stores themselves are a huge factor, both in bringing money into the company and expanding the company's target audience.

If nothing else, the fact that Michael Dell practically begged Apple for OS X, by stating that his company would license it if only Apple opened it, is proof that Apple knows what it is doing. A lot has changed in the past ten years and the next ten promise to be just as interesting.

TAGS:

Apple | Dell

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