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Sun, Mar 21, 2010 - 08:03 AM EDT  —  AAPL: 222.2499 (-2.4001, -1.07%)  |  NASDAQ: 2374.41 (-16.87, -0.71%)

JPMorgan downgrades beleaguered Dell; shares slide
Thursday, February 05, 2009 - 03:18 PM EDT

"Shares of computer maker Dell Inc. retreated Thursday after a JPMorgan analyst downgraded the stock, citing the company's high exposure to a withering PC market," The Associated Press reports.

MacDailyNews Note: DELL is currently down 3.37% to $9.46.

"Unlike rivals Apple Inc. with smart phones, and Hewlett-Packard Co. with printers, Round Rock, Texas-based Dell hasn't significantly diversified into other markets," AP reports. "That is likely to 'make for a bumpy ride given our view on PCs,' JP Morgan analyst Mark Moskowitz told investors in a note, downgrading Dell to 'Underweight' from 'Neutral.'"

Full article here.

MacDailyNews Take: Hey, wait, maybe Dell will, heh, announce, heh heh, an iPhone, hee hee! ha ha!, an "iPhone Killer," and, *snort!*, HA! HA! HA! HA!, ahem... aww, forget it.

[Thanks to MacDailyNews Reader "James W." for the heads up.]


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Feb 05, 09 - 04:28 pm Comment from: Demon

Shut-it Down and give the money back to the investors.

Feb 05, 09 - 04:28 pm Comment from: ken1w

> Unlike rivals Apple Inc. with smart phones, and Hewlett-Packard Co. with printers, Round Rock, Texas-based Dell hasn't significantly diversified into other markets

True enough. But despite the "withering PC market," Apple's Mac business is thriving and extremely profitable. So let's not infer that the only reason Apple is successful is because Apple has iPods and iPhones to sell. Apple is not like all the other PC makers, because Apple has a unique and compelling product that does not rely on Windows and can therefore command good profit margins in any economic situation (short of the collapse of civilization).

Feb 05, 09 - 04:29 pm Comment from: Demon

Already!

Mickey Dell what are you waiting for? To be delisted from the market.

Feb 05, 09 - 04:29 pm Comment from: YES ON 8

beleaguered Dell

Feb 05, 09 - 04:30 pm Comment from: AP

This is why I love the free market. Ultimately, good ideas and hard work will eventually rise, and cheap derivative crap will eventually swirl down the bowl.

Feb 05, 09 - 04:32 pm Comment from: Jersey_Trader

You think that Mr. Dell should just shut the doors, give his apologies and give what ever money is left to the share holders.

Feb 05, 09 - 04:34 pm Comment from: Mac Demon

Circling the bowl waiting for the flush of death!

HP is taking over, Dell is dead.

Of course I wish it was Apple invading Dell's space instead, but they won't produce a sub $1000 tower which every business wants.

Not a bright move Apple...

Feb 05, 09 - 04:34 pm Comment from: Jersey_Trader

You have to wonder how many other companies will talk because of Microsoft and their lack of innovation.

Feb 05, 09 - 04:53 pm Comment from: Nutcracker

@Mac Demon

Apple knows what it's doing with its R&D;money, which is why it's a US$25B corporation and yours is a...

What is it you do, again? prognosticate? hmm...

Steve Jobs has repeatedly said that there are some customers that Apple chooses not to serve. Let Apple take care of Apple's business and you take care of... whatever it is you do.

Feb 05, 09 - 05:04 pm Comment from: KenC

Actually, Dell has diversified its product line, into printers, projectors, tvs and other things. The problem is that they haven't been very successful.

Feb 05, 09 - 05:06 pm Comment from: Tom

Quick poll: Will the report today of them using slave labor along with HP, IBM, and Lenovo even earn a mention the way the Apple issue did years ago?

Nah, pfffftttttt, why even bring it up.

Feb 05, 09 - 05:16 pm Comment from: @Nutcracker

You don't offer a single reason why you think Mac Demon is wrong, but you're snide nonetheless. Why bother posting your drivel?
Apple has changed course before, and it has admitted mistakes in the past. There's no reason any of us shouldn't make informed suggestions. I run a business that performs quite well, thank you, and I think Mac Demon is exactly right. There is no reason at all to think that a $999 mid-range tower Mac with specs at least as good as an iMac couldn't be sold for a healthy profit, especially since PC makers sell them for $800. Even if it cannibalizes some iMac and Mac Pro sales, it opens up a much bigger potential market, namely standard business desktop computers. None of Apple's current desktops are designed for that market, a fairly large one. The only possible (business) reason for Apple not to offer that product is if still thinks it has no chance of success. On that score, there is room for disagreement from those of us in the business world, who would like to buy more Apple computers.
Carl

Feb 05, 09 - 05:19 pm Comment from: HMCIV

@MDN Take: You know you're laughing hard when you can't type without interjecting laughing idioms into your sentence.

Feb 05, 09 - 05:24 pm Comment from: nsapap

@ Nutcracker...

Would an upgraded or standard Mac mini fill the niche for those business users? Sure, difficulty of upgrading the hardware, etc., plays a factor -- but really, how much computing power does a standard business office work station really need?

Feb 05, 09 - 05:29 pm Comment from: Jim of D

@Mac Demon

Enough of that crap already!

"There are some customers which we chose not to serve. We don't know how to make a $500 computer that's not a piece of junk, and our DNA will not let us ship that. But we can continue to deliver greater and greater value to those customers that we choose to serve. And there's a lot of them."

Steve Jobs, 4th quarter conference call, October 2008

Just shut it.

Feb 05, 09 - 06:01 pm Comment from: Jubei

Remember when Jobs said "we're coming after you DELL"?.... Anyone who pisses off Jobs/Apple will get a big whooping from them.

Feb 05, 09 - 06:02 pm Comment from: Paul Zune's Meathammer

Nice take MDN - made me laugh.

Feb 05, 09 - 06:17 pm Comment from: ElderNorm

@Carl,
"There is no reason at all to think that a $999 mid-range tower Mac with specs at least as good as an iMac couldn't be sold for a healthy profit, especially since PC makers sell them for $800."

But see Carl, its not that easy. Apple knows this.

Companies do not yet take into account "total cost of ownership" Cheap crap is good, Reasonable is bad.

Companies have spent all that money on Microsoft.... Just who do you think is going to step up and say, "Hey, I was wrong and we just spent $ 10 million on crap systems." LOL

Apple understands that purchasing at companies is not yet ready to buy Apple. They buy cheapest cause "everybody knows that cheaper is better and he who makes the most stuff, must make the best stuff." Individual consumers are actually easier to convince.
Really. Just go to an Apple store and see for your self. People will sell themselves on Apple.

Just a thought.
en

Feb 05, 09 - 06:25 pm Comment from: schmluss

Michael Dell would probably wish he had money left over to give to the shareholders if Dell was shut down. However, I don't think that that would be the case.

MDN Keyword: Remember

How could we forget?

Feb 05, 09 - 06:27 pm Comment from: TimD

I'm going long on Dell, with Robert Enderle spearheading their new MP3 player strategy you'd be a fool not to?

Cheers,

Tim.

Feb 05, 09 - 07:34 pm Comment from: CourtJester

Poor Dell employees. But every almost TV programme I see these from documentaries to moving house to international rugby, the presenters and journalists are using Apple laptops. On a journalistic show tonight it was wall to wall Apple for 30 minutes. All that Apple exposure must have been worth a million dollars at least.

Feb 05, 09 - 08:58 pm Comment from: freebeer

In the Merriam-Webster, next to the word 'beleaguered', there should be a picture of Dell.

Feb 05, 09 - 10:06 pm Comment from: rexprimoris

Dell is supposedly considering modifying its corporate name to "Beleaguered Dell, Inc." That way, writers will be forced to come up with another adjective when they want to describe its ailing state.

Feb 06, 09 - 09:51 am Comment from: Big Al

Having once been the not so proud owner of a cheap Dell laptop running Windows Me, I am really enjoying Dell's predicament.

Kick them when they're down, I say.

Feb 06, 09 - 09:57 am Comment from: Radius

Dammit, TimD! You beat me to it!

I will say this for Dell. Their monitors are highly regarded.

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