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Sun, Nov 08, 2009 - 02:13 AM EST  —  AAPL: 194.34 (+0.3099, +0.16%)  |  NASDAQ: 2112.44 (+7.12, +0.34%)

Apple now worth more than Dell
Friday, January 13, 2006 - 04:14 PM EST

On October 6, 1997, in response to the question of what he'd do if he was in charge of Apple Computer, Dell founder and then CEO Michael Dell stood before a crowd of several thousand IT executives and answered flippantly, "What would I do? I'd shut it down and give the money back to the shareholders."

A little more than a month later, on November 10, 1997, new Apple iCEO Steve Jobs responded, speaking in front of an image of Michael Dell's bulls-eye covered face, "We're coming after you, you're in our sights."

Today, after a little more than eight years of hard work, Apple Computer, Inc. passed Dell, Inc. in market value. That's right, at market close Apple Computer ($72,132,428,843) is now worth more than Dell ($71,970,702,760).

Got any snappy retorts for that one, Mr. Dell?

Luckily, Apple has had the right man in charge since July 1997; a man with the vision and the ability to do what lesser men think impossible.

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Related articles:
Apple primed to pass Dell in market value - January 12, 2006
Corporate IT buyers fuming that Apple has Intel Core Duo Macs shipping while Dell and HP wait - January 12, 2006
Financial Times: Dell and Microsoft can never hope to attain Apple's Mac aura - January 10, 2006
Struggling Dell has lost its mojo while Apple shows rapid growth - November 07, 2005
Apple growing faster with more innovative products, better support than 'one-trick pony' Dell - November 01, 2005
IDC: Apple shows rapid growth, holds 4.3% U.S. market share on 48% growth - October 17, 2005
Michael Dell say's he'd be happy to sell Apple's Mac OS X if Steve Jobs decides to license - June 16, 2005
Why buy a Dell when Apple 'Macintel' computers will run both Mac OS X and Windows? - June 08, 2005
Apple Macs are less expensive than Dell PCs - April 25, 2005
Dell CEO: Apple can't just have one product and then say they're the innovative leader of the world - February 22, 2005
BusinessWeek: Rather than dismissing Apple products as fads, Dell should try starting a few - January 31, 2005
Dismissive Dell CEO not impressed with Apple Mac mini, calls iPod a 'one-product wonder' and a 'fad' - January 17, 2005
Michael Dell owes Apple an apology; Apple up 176 percent vs. Dell's 13 percent in past 12 months - January 15, 2005

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Jan 13, 06 - 04:19 pm Comment from: dan

YE BABY!!!!!!!!!!!!

Jan 13, 06 - 04:20 pm Comment from: Lurker_PC

They did it!!! Congratulations Apple!!!

Boy am I glad that I "put my money where my mouth is". True a bit late in the game but still with a NICE profit.

Jan 13, 06 - 04:21 pm Comment from: Rhoytink

that goes to show that copying others' work doesn't always pay

Jan 13, 06 - 04:22 pm Comment from: Naraa Haras

Wow. Considering how everywhere I look there's a Dell, this is pretty amazing. Now let's see Apple's revenues beat Dell's.

Jan 13, 06 - 04:22 pm Comment from: me

WITHIN seven years Apple has made that change. Fast, but it wasn't due to the Computers or software they created, it was because of the iPod and their distirbution of music via the iTMS (okay, that _is_ software).

let's not loose our minds here. Without the iPod/iTunes success, AAPL would not be anywhere close to DELL's market cap.

I love Apple, but I am also not on crack.

Jan 13, 06 - 04:22 pm Comment from: wall street guy

Dell plastic crap....it should come with a Hefty bag. I have one running in my office, and the loud fan noise is like water torture.

Jan 13, 06 - 04:26 pm Comment from: RealityCheck

Who cares if it's because of iPods or if it's because of computers. Either way, Apple is worth more as a company than Dell is now. Period.

Jan 13, 06 - 04:28 pm Comment from: Dave H

You may see Dells everywhere now, but UK corporates are getting fed up with the rubbish service and are moving back to HP. Every Dell server I see is years old. If this is being repeated elsewhere, Dell are on the way down big time.

The Stock Markets are for speculation. Traders aren't interested in current earnings, only future potential.

My prediction : Sun to buy Dell in 2008.

Jan 13, 06 - 04:28 pm Comment from: Moe

So what does this actually mean? Sorry, I don't know much about economics.

Jan 13, 06 - 04:28 pm Comment from: NewType

No doubt Dell will resort to the "iPod is just a one-shot fad" argument.

Yeah, like it was last year and the year before that. And the year before that....and in the meantime, iPod continues to grow at a rate of 300% a year.

So, how are those sales of the Dell DJ?

Jan 13, 06 - 04:30 pm Comment from: Ken Miller

Hoo Rah

Jan 13, 06 - 04:37 pm Comment from: wyred_guy

Wow, bull-eye! Steve's perfect shot! Let's all mark this historical day, and it's only the begining of what Apple could become in the computing/multimedia powerhouse. M. Dell, feeling the burn? you sure wish you'd better kept your mouth shut then rite, look at you, nothing more than an idiot.

Way to go Applel!!!

Jan 13, 06 - 04:37 pm Comment from: iSteve

After another year we'll be reading the phrase....

Beleaguered Dell

Jan 13, 06 - 04:39 pm Comment from: sonyc

oct 97 <-> jan 06 = 99 months smile

Jan 13, 06 - 04:40 pm Comment from: R

Wow, that iPod's got legs! And with only 4% of the computer market (and growing)-- this is gonna' grow to be one fat Apple!

Jan 13, 06 - 04:42 pm Comment from: The Dark Side of the Moon

Weird how dates sync up with Apple so perfectly...

April 1st - Incorporate Apple (I think, that is)
June 6th (D-Day) - Switch to Intel
The Other Day - Stock price ends up $80.86
Surpasses Mike's Company - Friday the 13th

Any others?

Jan 13, 06 - 04:43 pm Comment from: Cheap Charlie

In response to Moe, what it means that Apple, the company, is worth more than Dell, the company. If a third company were to buy one or the other, it would cost them more to buy Apple, in theory. What this means, is that the market, today, considers the present value of Apple's future income stream, less its liabilities, is greater than Dell's. The market capitalization should be approximately equal to this present value. If the market cap is greater, then institutions will sell, bringing down the stock price. If the market cap is greater, then they will buy, driving up the stock price, either way, driving the price toward the present value.

Jan 13, 06 - 04:51 pm Comment from: LordRobin

There's nowhere to go but down for Dell. Apple innovates "upward", creating exciting new products and services that capture the public's imagination and inspire interest in the company. Dell innovates plenty as well, but they innovate "downward", finding new ways to increase production efficiency and cut costs, making computers as cheaply and quickly as possible.

The problem for Dell is that "downward" innovation is limited by the floor; i.e. you can only cut and trim so far, and they've reached that limit. By contrast, Apple's innovative capacity is limited only by the imagination of its employees.

Dell has no real future. Oh, they won't necessarily disappear, but they've achieved all they can achieve. From here on out, they're merely another Windows box assembler, fighting with Lenovo et al for a share of a revenue pie that will steadily shrink as the product in question becomes ever more commoditized.

Jan 13, 06 - 04:52 pm Comment from: Farmer in the Dell

Hey Mr. Dell, EAT APPLES DUST!

LOSER!

Jan 13, 06 - 04:52 pm Comment from: Tera Patricks

Revenge is a dish best served cold.

I imagine it's a bit chilly inside Dell's HQ these days. Sure, just like Microsoft, they're a cash cow**, but they've got Lenovo sneaking up behind them. That can't be a good feeling.

**I just checked-- Dell has a little more money in the bank than Apple. They'll need it.

Tera Patricks
Mac360

Jan 13, 06 - 04:54 pm Comment from: MacMania

Bill and Monkey Boy is next.

Rock Steve!

raspberry

Jan 13, 06 - 04:54 pm Comment from: the other macdude

It doesn't matter if Apple's success is due to the iPod.

Dell also sells their DJ mp3 players which can be used with a variety of online music stores except iTunes. Yet the DJ (DJ = Dell's Junk) hasn't caused Dell's stock to climb nor has it produced any significant revenue/money for them.

Apple's Mac has seen significant growth every quarter and is about to see even more growth with the intel chips and greater apple computer awarness.

Both Apple and Dell sell basically the same type of hardware.

Apple is an innovator and has consistently produced completely awsome technology that everyone can easily use and wants. Apple shows no signs of slowing down either. They can only acheive more success from their position of being a "niche player" in the computer market.

Dell is just a copycat company that manufactures cheap, below-quality computers that comes with an out-of-date legacy foundational, unsecured and bug ridden Windows OS. Many folks are finally realizing this and are giving Apple another look! smile

Jan 13, 06 - 04:54 pm Comment from: Steve Jobs

That's what happens when you have large volume and low margin. What good is that to investors?

Nada, Mike.

Bozo.

Steve

Jan 13, 06 - 05:06 pm Comment from: Mike

We all knew this day would come...well, except for Michael Dell apparently. What a joke.

Jan 13, 06 - 05:07 pm Comment from: R

"How's dem Apples?!"

Jan 13, 06 - 05:10 pm Comment from: Dave

Was that really Steve Jobs?

Jan 13, 06 - 05:15 pm Comment from: charlie

me said: 'WITHIN seven years Apple has made that change. Fast, but it wasn't due to the Computers or software they created, it was because of the iPod and their distirbution of music via the iTMS (okay, that _is_ software).

let's not loose our minds here. Without the iPod/iTunes success, AAPL would not be anywhere close to DELL's market cap.'

Utter crap!

For a start, Jobs made the comment about Dell in 1997. The first iPod did not hit the market until 2001 - four years later, as for the iTunes store, that didn't debut until 2003 - six years later.

So the impact on Apple's market valuation, while impressive in the last three years, is hardly the whole story. I'd argue that the introduction of the first iMac into a moribund and overwhelmingly beige market had a bigger impact on Apple than practically anything else.

Jan 13, 06 - 05:17 pm Comment from: MacDude

Dell makes crapola, it's over for them.

Jan 13, 06 - 05:18 pm Comment from: m

other macdude said: "It doesn't matter if Apple's success is due to the iPod"

I agree with you on that. no one says Dell wouldn't be making money if it wasn't for those desktops, or MS would be going broke if it wasn't for MS office.

Hey, I remember paying $2000 for a powerbook when apple was basically a sinking ship w/o Jobs. its kinda cool that they are %!##* everyone else with the ipod right now.

Jan 13, 06 - 05:19 pm Comment from: iScott

CAN I GET A WOOT!!!!!!!!!

Jan 13, 06 - 05:27 pm Comment from: MacDoctor

This is great news indeed. Put any two comparable computers side by side, one from Apple and the other from Dell and they're as different as night and day.
Even without turning either one of them on, the industrial design and the internal engineeringof the Apple units are light years ahead of the Dell machines.

Jolly good show, Apple!

Jan 13, 06 - 05:35 pm Comment from: babanovac

Sorry guys ! I do love Apple because they do good and neat SW, good and neat HW and all the rest, and I'm really glad for Apple's performance of topping Dell in MV. It's good to make fiesta from time to time, but what about postponing the champagne and confetti time for the moment when Apple's annual turnover will top Dell's ? Until that day, keep this chart in mind: link

Jan 13, 06 - 05:42 pm Comment from: winmacguy

@ Moe
It means that Apple as a company is worth more $$$$$ than Dell computer even though more people in the world use Dell PCs than Macs. Dell PCs have a very small profit margin (single figure percentage when sold) Macs sell with average profit margin of 28%.

Jan 13, 06 - 05:45 pm Comment from: tank

mr. fiesta, bananovac, maybe your argument would work better without a broken link.

Jan 13, 06 - 05:47 pm Comment from: Jimbo von Winskinheimer

Bwahahahahahahahahahahahahahahhahahahahhaaaaaaaaaaaa!!!!!!!!!!!

Jan 13, 06 - 05:50 pm Comment from: iSteve

On 10/6/97 Dell closed at $98.6875 or split adjusted 8:1 at $12.34. Apple closed at $21.9375 or split adjusted 4:1 at $5.48.

If somone invested $1,000 in each company the next day they would have purchased, in today's split adjusted values, 81.04 shares of Dell or 182.5 shares of Apple.

The Dell stock today would be worth $2,478.20 while the Apple stock would be worth $15,620.16.

Jan 13, 06 - 05:55 pm Comment from: imax

Ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha ha.

That's hilarious. Apple's worth more than Dull.

Jan 13, 06 - 05:59 pm Comment from: Conrad Benedict

Dell - stop shoving your cheap shite on us. We hate your crap

Jan 13, 06 - 06:01 pm Comment from: Veronica

Dell ightful, its always a shame when people say supposed proper things, to be made a fool of in just a few years, What would his answer be, I wonder if Mr Dell was asked the same question now?

Jan 13, 06 - 06:09 pm Comment from: Cpt. Obvious

Interesting. So now that Apple surpasses Dell in value, a lot of you are ready to write Dell off. Wasn't it that same retarded mentality that got Dell to shoot his mouth off in the statement you're now busting his balls over?

A little bit of humbleness might be in order folks. It's not like it's your hard work that got Apple to this point.

Let's face facts. This site is largely comprised of very immature partcipants these days. Which means it's probable few of you have supported Apple to any significant degree monetarily. Owning a clamshell iBook doesn't mean you're the reason Apple has crossed this bridge today.

And if you think Dell and MS are doomed, you've aparently overlooked the incredibly effective busniess tactics those two employ (ethically/legally or not).

Jan 13, 06 - 06:14 pm Comment from: DCchesterUK

imax
love it . . . add my ha too!!

Jan 13, 06 - 06:15 pm Comment from: iSteve

Capt. Obvious:
I've endured 15 years of odd looks for being a Mac fan. I've bought more than my share of Mac products and depending upon the weather my Apple logo tattoo is good advertising. I can take a little bit of credit and I gloat just a bit.

Yes, MS and Dull aren't going away anytime soon but it is nice to see the tables turned.

BTW, that $1,000 invested in MS in October 1997 would be worth a measly $1,608.83 today. Granted they've paid out dividends but not enough to make up for the difference. Eventually MS and Dull shareholders are going to begin to ask questions the way Roy Disney did at Disney.

Jan 13, 06 - 06:17 pm Comment from: The Other Steve

And at the same time Apple grab's Intel's newest and latest chips before Dell could get ahold of them.
grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin grin

Jan 13, 06 - 06:19 pm Comment from: babanovac

Right, TankMan ! Take this:
http://finance.yahoo.com/q/bc?s=AAPL&t=my&l=on&z=m&q=l&c=dell

Jan 13, 06 - 06:21 pm Comment from: DCchesterUK

Cpt. Obvious
I have owned 12 macs, 3 mac printers, 1 mac cam, 8 ipods and converted dozens of people to the beauty of mac, I think I can say thank you Steve and the crew, I'm a happy little bunny with this landmark.

Jan 13, 06 - 06:22 pm Comment from: Broker

babanovac,

Ancient history vs. recent performance.

Right back at ya:
http://finance.yahoo.com/q/bc?s=AAPL&t=1y&l=on&z=m&q=l&c=dell

Jan 13, 06 - 06:32 pm Comment from: Cpt. Obvious

And so come the expected replies like "but I own X number of Macs!"

Well, if you've bought 12 Macs, then I'm not talking to you. Nowhere did I say nobody here has helped. Read again what I said, and explain to me where I'm wrong.

And no, getting funny looks from PC users for years doesn't entitle you to anything. Gloating back at them at this point means you're no better than they are. So way to go, you've joined the crowd of assholes!

Jan 13, 06 - 06:34 pm Comment from: Re: babanovac

Nobody cares about what Dell's stock was doing 10 years ago dude. Look at AAPL vs DELL vs MSFT over the past 5 years. AAPL is absolutely killing them both.

Jan 13, 06 - 06:39 pm Comment from: babanovac

Ya Broker, whish u'd b right ! U call it ancient history ? Maybe. I just call it history. Life (and everything that goes with, like business for instance) goes only with the (very) long term. Short term means nada. And that, I'm pretty sure SJ knows it. So, let's hope together that 01/10/06 and 01/13/06 will be the 2 milestones in Apple's long term revival.

Jan 13, 06 - 06:43 pm Comment from: babanovac

To Re:babanovac

Nobody ?!... What about Wall Street, dude ?...

Jan 13, 06 - 06:43 pm Comment from: Zonkzor

I'm no expert in stocks but do know a thing or two. The price of a stock does not directly reflect how valuable the company is. Often companys will do stock splits where they will cut the price down and give stock holders more shares. There are other things that effect the price of the stock as well that are far over my head.

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