Apple now worth seven times Dell’s market value

[*LTD*]

http://quotes.nasdaq.com/Quote.dll?symbol=AAPL&symbol=DELL&mode=stock&multi.x=26&multi.y=4

http://www.macdailynews.com/index.p...ple_now_worth_seven_times_dells_market_value/

Apple now worth seven times Dell’s market value

Tuesday, January 26, 2010 - 12:17 PM EST

On October 6, 1997, in response to the question of what he'd do if he was in charge of Apple, Dell founder and 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 Interim CEO (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."

On January 13, 2006, after a little more than eight years of hard work, Apple Inc. passed Dell, Inc. in market value, $72.13 billion vs. $71.97 billion at market close, respectively.

• 2X: On July 27, 2007, Apple's value doubled that of Dell's, $127.81 billion vs. $63.65 billion, respectively.

• 3X:On December 6, 2007, Apple's market value passed 3 times that of Dell's, $165.66 billion vs. $54.42 billion, respectively.

• 4X:On May 01, 2008, Apple's market value quadrupled that of Dell's, $158.66 billion vs. $38.97 billion, respectively.

• 5X:On February 12, 2009, Apple rose $2.60 to hit a market value of $88.37 billion or 5 times that of Dell's $17.52 billion.

• 6X:On October 20, 2009, Apple rose $11.21 to $201.07 to hit a market value of $180.12 billion or more than 6 times that of Dell's $29.97 billion.

• 7X:In NASDAQ trading today, Apple gained $7.57 to $210.64 to hit a market value of $189.72 billion or more than 7 times that of Dell's current $27.03 billion.

Apple is also a debt-free company and currently has significantly more cash and short-term investments on-hand ($39.8 billion) than Dell Inc. is worth.

 

[belvdr]

Another fine public service announcement. Seriously, this changes daily with market fluctuations. It is not the only indicator of business success.

I would be willing to bet there is more Dell hardware in circulation than Apple. Does that mean anything by itself? No.

Your threads are getting a little long in the tooth. As one other poster said already, get a blog.

 

[*LTD*]

Interesting how far Apple has come since 1997.

Today, Dell is simply one generic box maker among several, with little, if anything to differentiate it from the rest.

 

[davidjearly]

Interesting how far Apple has come since 1997.

Today, Dell is simply one generic box maker among several, with little, if anything to differentiate it from the rest.

It is very interesting and says it all about Apple and just how successful they have been over the previous decade. I was aware that they had long since overshadowed Dell based on market cap, but to see just by how much is quite astonishing.

It will be interesting to see just how long they can keep this going for. I agree with you regarding Dell. Don't get me wrong - they make some good products, but there is nothing at all about anything in their product line that stands out. They make good, reasonably cheap PC's and they're good at it.

 

[MisterMe]

... I agree with you regarding Dell. Don't get me wrong - they make some good products, but there is nothing at all about anything in their product line that stands out. They make good, reasonably cheap PC's and they're good at it.

Dell is primarily a distribution model. While it worked, it worked spectacularly well. It turned Michael Dell into a billionaire afterall. As far as the things it distributes--computers--I am not so impressed. Without a lot of care and feeding, my firm's Dells appear to spontaneously disintegrate.

 

[bigjnyc]

Another fine public service announcement. Seriously, this changes daily with market fluctuations. It is not the only indicator of business success.

I would be willing to bet there is more Dell hardware in circulation than Apple. Does that mean anything by itself? No.

That means they are working harder and making less lol. Would you rather be making more profit or having more of your product out there?

 

[belvdr]

That means they are working harder and making less lol. Would you rather be making more profit or having more of your product out there?

Why does my statement necessarily mean making less?

 

[jknight8907]

Why does my statement necessarily mean making less?

Did you read the original article? Dell IS making less than Apple.

 

[KnightWRX]

Did you read the original article? Dell IS making less than Apple.

No, the original article is about the stock market, not about Dell's or Apple's financials.

Market Cap isn't revenue nor profit.

 

[belvdr]

Did you read the original article? Dell IS making less than Apple.

Evidently you do not understand what you were reading. For 2009, Dell had net income of 2.4 billion, while Apple had net income of 1.6 billion.

Again, how did my statement mean Dell is making less money?

 

[djellison]

Your threads are getting a little long in the tooth. As one other poster said already, get a blog.

I've got into the habit of reporting each one. It's getting ridiculous.

 

[63dot]

What I can't figure out though is almost everywhere I go, most mobile computers I see are Dells, with some Toshibas, Gateways, Acers, and Sonys. I only see some of the local junior college students in the towns near me with Macs. The older junior college students (and many among them with a 4 year degree and/or families) are almost universally PC users.

I think the market valuation is large due to iPhone, iPod, and iTunes, and perhaps many Mac desktops we don't see which are in homes and businesses.

It used to be for every Mac laptop, there would be 20 PC laptops and I would be the lone person with an iBook. In my latest class, I had an iBook, one person had a black Macbook, and two people had Powerbooks. The other 30+ students had PC laptops or netbooks.

At best in Silicon Valley from Monterey to Sonoma County, I have seen the ratio of about one Macbook/Macbook Pro/older Mac laptop to about 10 PC laptops, and always more Dells than Macs.

 

[rhett7660]

What I can't figure out though is almost everywhere I go, most mobile computers I see are Dells, with some Toshibas, Gateways, Acers, and Sonys. I only see some of the local junior college students in the towns near me with Macs. The older junior college students (and many among them with a 4 year degree and/or families) are almost universally PC users.

I think the market valuation is large due to iPhone, iPod, and iTunes, and perhaps many Mac desktops we don't see which are in homes and businesses.

It used to be for every Mac laptop, there would be 20 PC laptops and I would be the lone person with an iBook. In my latest class, I had an iBook, one person had a black Macbook, and two people had Powerbooks. The other 30+ students had PC laptops or netbooks.

At best in Silicon Valley from Monterey to Sonoma County, I have seen the ratio of about one Macbook/Macbook Pro/older Mac laptop to about 10 PC laptops, and always more Dells than Macs.

I think you will pretty much always see this. Unless Apple starts bringing the price down of their laptops. You can get a pc for cheap, meaning the sub $400 range.

 

[*LTD*]

I've got into the habit of reporting each one. It's getting ridiculous.

You're wasting your time.

I think you will pretty much always see this. Unless Apple starts bringing the price down of their laptops. You can get a pc for cheap, meaning the sub $400 range.

Agreed. We're still talking $1000+ vs. the $400-$600 range. The bottom of the market pyramid is naturally wide and will stay that way. In any case, Apple doesn't even compete in the low range and as we've heard quite clearly, they don't intend to.

 

[BaldiMac]

Evidently you do not understand what you were reading. For 2009, Dell had net income of 2.4 billion, while Apple had net income of 1.6 billion.

Again, how did my statement mean Dell is making less money?

In their last FYs, Apple had a net income of 8.2 billion (closer to 10 billion for calendar year 2009). Dell was 2.4 billion as you stated.

 

[belvdr]

In their last FYs, Apple had a net income of 8.2 billion (closer to 10 billion for calendar year 2009). Dell was 2.4 billion as you stated.

I used Google before, but Yahoo says it is 5.7 billion as of Sep-26, 2009 (end of FY08-09 for AAPL). I'm not sure why Google's was different.

It still boils down to market cap does not mean anything by itself.

 

[Cinematographer]

I'm not sure why Google's was different.

Obviously Yahoo still shows full year profit according to the old GAAP rules, which is $ 5.704 billion.

Google shows full year profit according to the new GAAP rules, which is $ 8.235 billion. Apple Inc. had to adopt the new accounting principles before 2011 and decided to do it right away. They changed their results on a retrospective basis and published them here.

As we can see, it makes a huge difference.

Under historical accounting principles, the Company was required to account for sales of both iPhone and Apple TV using subscription accounting because the Company indicated it might from time to time provide future unspecified software upgrades and features for those products free of charge. Under subscription accounting, revenue and associated product cost of sales for iPhone and Apple TV were deferred at the time of sale and recognized on a straight-line basis over each product’s estimated economic life. This resulted in the deferral of significant amounts of revenue and cost of sales related to iPhone and Apple TV.

 

[MisterMe]

Evidently you do not understand what you were reading. For 2009, Dell had net income of 2.4 billion, while Apple had net income of 1.6 billion.

Again, how did my statement mean Dell is making less money?

Neither Apple nor Dell are single proprietor companies. If they were, then the owner might be satisfied with the larger net income. However, both are public corporations. As such, their shareholders want the larger return on investment. They also want the best prospects for future earnings. Net income tells you absolutely nothing about the prospects of either.

Head-to-head comparisons of Apple and Dell are difficult because Apple is much more diversified than Dell. However, the fact Apple's market cap is seven times Dell's market cap tells me that the market has determined that Apple's future prospects are substantially better than Dell's.