How can Apple be worth more than Dell?

MacNN ^ | 01/20/2006

[Panerai]

Despite the enormous size of Dell, Apple's growth possibilities, tantalizing to investors, are probably the reason it has surpassed Dell's marketcap. A new BusinessWeek blog posting looks at How can Apple be worth more than Dell?, concluding that Dell is limited by its size, while Apple can achieve growth with relatively quickly: "But if you don't have big honking growth markets waiting to be harvested, size can be a heavy anchor indeed. The math is simple. To deliver 15% growth in the upcoming year, $55 billion-a-year Dell has to find $8.25 billion in extra sales. But Apple, at $13.9 billion in overall sales, would have to find just $2 billion....So if Apple gains a point of market share this year--not a pipe dream by any means, especially given the Intel transition--Jobs & Co. will have already found the fuel for that 15% revenue growth year. And that's without any iPod sales growth."

[isthisnickcool]

Heck if I know. I'm still trying to figure out why google is "worth" what it is.

[RadioAstronomer]

Because the iPod IMHO is what saved Apple.

[FreedomFarmer]

"Dewd~ don't harsh cap my high!"

[ChadGore]

Irrational Exuberance.

[p23185]

Heck if I know. I'm still trying to figure out why google is "worth" what it is.

Yes, me too. All Google does is arrange little ones and zeros over the internet????

[Petronski]

Heck if I know. I'm still trying to figure out why google is "worth" what it is.

Dutch tulips.

[isthisnickcool]

Tulipomania......

[diverteach]

Easy answer. Everything other than an Apple is running Microsoft Windows BS that sucks.

[isthisnickcool]

Microsoft sucks?

(yelling) Hey Linus! Did you hear about this?

:)

[Mr. Blonde]

An as an extension of that Steve Jobs did. Since he came back they have been rolling. He no doubt has faults, but if you own Apple stock I would say the good outweighs the bad by quite a bit.

[Sam the Sham]

What does Dell create ?

[birbear]

Since he [Jobs] came back they have been rolling. He no doubt has faults, but if you own Apple stock I would say the good outweighs the bad by quite a bit.

Actually there was hiccup in Apple's stock in the late 90s and early 2000s. (As there was for most tech stocks) IIRC, people were calling for Jobs' head. (I was one of the stock owners who wanted him ousted. I thought he did a great job introducing the iMac, but fumbled the ball on the rest of the over priced machines.)

Since about 03, Apple has figured out how to price equipment, and these new Intel based Macs are quite a steal. iTunes and iPod have allowed Apple to enter (and dominate) a new market.

I wish I hadn't sold my Apple stock when I did. I was qyite myopic on it. But at least I had the foresight to buy Google.


As to those who ask why is Google worth so much. Google Ads. I, frankly, don't click on 'em but very rarely. But other people live by 'em. And they're on almost every freakin website I see. Revenue for Google is 5.25 BILLION. And their profit margin is 25%. Not bad. Not bad at all. And they're sitting on cash reserves of 7.63 BILLION. (Compare that to the largest private employer in the US -- Wal Mart: Revs of 305 Billion, Profit margin of just 3.5%, and cash reserves of 4.54 Billion.) Google is making money somewhere along the line, and making it fairly efficiently.

[brainstem223]

Apple makes its money off the ipod having sold 40 million of these, while the mac, in spite of it being for sale for the last 20 years; has a low single digit market share. The ipod fad will pass in time but the mac will still have dismal market share. Their choice of the lagging intel for processors and 32 bit ones besides, was equally dismal.

The long term strategy is to short apple stock.

[brainstem223]

And Linux sucks too?

[SamAdams76]

Apple more valuable than Dell ping!