Just another form of "Apple's going to go out of business any day now!"... which is the reason a Windows user told me just this afternoon why he wouldn't switch to Macs.
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Posted on 10/18/2006 6:49:22 PM PDT by Swordmaker
The future success of Apple, Dell and Intel lies with a licensing deal between Steve Jobs' company and the PC maker according to analyst Gartner
Increasing component costs and pressure to cut its prices mean Apple's best bet for long-term success is to quit the hardware business and license the Mac to Dell, analyst firm Gartner claimed on Tuesday.
In a surprisingly ambitious report, called Apple Should License the Mac to Dell, Gartner says Apple should concentrate on what it does best — create software — and make use of Dell's production and distribution infrastructure.
"Apple should leverage its close relationship with Intel and team up with Intel's closest ally, Dell," the report states. "We recognise that this move would surprise and even shock many. We are aware that Steve Jobs cancelled previous Mac licences when he took over at Apple and that he guards the Apple brand zealously."
Up to around 1997, companies including Power Computing were given the rights to license Mac technology from Apple. However, when Jobs returned to the company, he attempted at first to renegotiate the licences but eventually opted to cancel them.
Apple increased its share of the PC market to around 4.6 percent in July this year, according to analyst figures.
Gartner claims that with the right partners, distribution channels and a more affordable price, computers running the Mac OS could eventually account for 20 percent of the total PC market.
According to IDC, Apple's sales, while still smaller than its major competitors, grew by double digits in the second quarter of this year. IDC attributed the growth to a successful transition to Intel chips.
According to Apple's third-quarter results — released in July this year — Mac sales were up 12 percent compared with last year, during what was considered a poor quarter for the PC market. Apple said that 75 percent of all Macs sold during the period used Intel's chips.
However, Apple will not be able to substantially increase this growth on its own because of increasing pricing pressure, Gartner warns.
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, Gartner claimed.
Given that HP has forced Intel to offer it comparable pricing to Dell, Intel is unlikely to continue to subsidise Apple, the analyst argues. "As a result of permanently changed market conditions, Intel has been forced to restructure and, in our opinion, cannot go on supporting Apple (or any other customer) indefinitely."
Whether Apple's Steve Jobs would sanction any of the suggestions made by Gartner is hard to gauge. However, comments made by the Apple chief executive in April this year suggest that he is not unduly worried by his company's limited share of the PC market.
"One of the nice things about having four or five percent market share is you don't really care if [the PC] market is down," said Jobs speaking at Apple's annual shareholder meeting in April.
This guy thinks they would be better off selling $129 copies of OS X discounted to $50 to Dell... how many would they have to sell to Dell at $50 each to equal the profit they just posted???
Only 10,000,000... each quarter. Right, sure.
This guy can't analyze his way out of a wet paper bag!
Just another form of "Apple's going to go out of business any day now!"... which is the reason a Windows user told me just this afternoon why he wouldn't switch to Macs.
If you want on or off the Mac Ping List, Freepmail me.
That's likely because Dell, Intel and Microsoft pay Gartner $1 million each per year in fees and Apple pays $500K.
Others have that talent, as well. I recall about 12 years ago, when Apple stock was mired down in the $12 - $15 dollar range. The San Jose Murkie News, who like to fancy themselves as the newspaper of record for Silicon Valley, ran a series of stories about how Apple was doomed.
Within two weeks, the stock took off, and went from $12 to $60 in three days.
Moron! IMO hardware is one solid reason Macs have been easy to use. If I want a piece if cr*p I'll by a PC!
Some goof writes this exact same column at least five times a year. I think clone manufacturers desperately want a sellable alternative to Windows and push this concept, hoping Apple will bite, and giving them leverage against MS.
even better make the software run on PC.
This guy sounds like a total idiot. He clearly does not understand how valuable Jonathan Ive has been to Apple.
Gartner is republishing his old work?
I get this jumble of wires and cards?
Oh HELL no!
Heh... but it sounds like something just crazy enough for Jobs to be thinking about it. However, I think his next abrupt and surprising move will be in four or five years, when he changes chip suppliers again.
:')
Gartner are just a bunch of whores....they'll do a position paper touting anything (or ripping anything) if the money is right. Apple's market share is now up over 6 percent, and dollar to doughnuts, when Vista arrives with all of it's myriad issues, Apple will likely hit 10 percent.
If that were the case, I will go back to an abacus and a typewriter.
Did you see the NASDAQ action on AAPL today?
I think Jobs made the smart move this time. Apple could never buy chips in enough volume to justify the R&D on chips that mostly went to Apple. They got bit twice on that. Now they're with a supplier who will improve their chips whether or not Apple even exists. Plus Apple can just move to AMD with relatively little effort.
have fun changing the processor in the Mac Pro. :)
OSX ALREADY runs on PC but JOBS makes illegal to do so...
because he sucks.
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