14 DAY TRIAL // The rivalry between Apple and Dell is still going strong, although things have changed much in recent times. During a question-and-answer session at Dell's annual shareholder meeting, Chairman Michael Dell was asked how he viewed competition from Apple.
The answer, in part:Apple certainly has done a very nice job with their products. I think you're going to see a number of new, competitive dynamics in that market ...music services. We've been working with MTV, which has a new service called Urge. That's an exciting space that Apple has done well in, but I would be surprised if they are able to maintain the share they have today over the next ten or 20 years. In terms of competition with Apple (in PCs), our share numbers speak for themselves. Apple is growing, but is still not in the top five in share for computers.
Things have changed a little since Michael Dell was suggesting to shut down Apple and give the money back to the shareholders. Amusingly enough, most of the comment deals with Apple's iPod & iTunes Music Store juggernaut, where MTV's URGE is just another nice player. Just as amusing is the 20 year timeline that is invoked, which is a small eternity in terms of technology.
In terms of competing with Apple, Dell's share numbers really do speak for themselves. During the most recent quarter, Apple saw 15.4 percent growth, year-over-year, compared with Dell's 6.3 percent growth. Furthermore, Dell's shares plunged 15% to $18.72 in pre-market Inet trading after saying it expected fiscal second-quarter earnings of 21 to 23 cents a share, below the average analyst estimate compiled by Thomson First Call of 32 cents a share. Meanwhile Apple's shares rocketed over 12%, up $7.00, to $61.10 in pre-market trading after reported fiscal third-quarter earnings that rose 48% and topped Wall Street expectations.
The numbers really speak for themselves when you consider that last year, at the end of March, the stock split put Dell and Apple shares at around the same $40 price.