AAPL vs DELL
In another thread someone suggested that Apple is getting close to Dell in stock price. Dell has 2.6 billion shares outstanding while Apple has 350 million. For Apple to reach Dells market value it would have to trade at above $200.00 a share. It might seem to some that either Dell is overvalued or Apple is undervalued. I think that the riskier investment is Dell as they are ,so far, a one trick pony (mass marketing a commodity). Apple has room to grow. Just causually reading press reports one gets the feeling that Apple has the big "M" momentum. So Apple stock, options and Leaps are attractive to me but I would be scared to short Dell because the Wall street honchos love Dell. The bright side is that almost all the anaylists who cover Apple are in Neutral. A couple have buy recommeds and there are no sells. If Apple posts better than expected earnings in April then we should get some upgrades and the stock has fairly clear sailing over $27.00 Increased market share would really send aapl up. Bias: am long AAPL
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There are some serious doubts about other PC manufacturers at this point. If you are going to short someone, short Gateway. They are in serious trouble. They have no coporate accounts, and the consumer market is cutthroat. Dell is starting to focus on consumers as well, and that could seriously damage them.
I am optimistic on Apple too though. Because they are not involved in the price wars, and they have such a loyal user base, they are well poised to grow over the next few years. I think OSX along with continuing hardware and software innovations will drive AAPL significantly higher in the next few years.
with all the PC companies catching up with themselves and falling out, I wouldn't be surprised if it ends up being Dell Vs. Apple as far as sonal desktop computers are concerned, I mean there probably will always be loads of tiny companys that make shitty boxes that have nothing but a 1.6 ghz cpu(I don't mean DIY boxes)
but I feel that Dell will continue to rise, to the point when they are the undisputed champs of the PC market, once this happens, it will probably help Apple alot, because then they will have less companies selling cheap computers and belittling Apples efforts, and also the consumer base will all say "hmmm Dell or Apple?" and not "hmmmm dell,compaq,gateway,Hp,IBM,emachine...etc"
and not even noticing Apple's existance
If Apple keeps up with innovating and releasing great new products and if they start more active advertising campaigns I would not be surprised at all if aapl stock triples
Remember Packard Bell used to be #1, then Compaq, now Dell...next? <img src="graemlins/bugeye.gif" border="0" alt="[Skeptical]" />
Sure, Dell doesn't innovate, but they don't have to. Intel and M$ do all of Dell's R&D for them. What really trips me out is that Dell actually spends more money on R&D per year than does Apple! What the hell does Dell do with all that R&D??? It really drives home how tight an operation Apple currently is under Jobs, if you think that Apple makes all this great new hardware and totally killer software, yet spends less on R&D than Dell.
Gateway, well I'm just dying to see what happens to them next. It amazes me that they think that advertising unbelievably low prices and closing a few stores they'll be able to pull themselves out of the dive their in. Not to mention that idiot that talks to cows.
Let's just say that Apple has some room to grow if things continue to go well for them.
Maybe Steve Jobs can tell Bill Gates some day what Vince Lombardi said after a defeat : "We did'nt lose. We just ran out of time"
<strong>Dell is a great widget maker, I don't think the company will go anywhere but up. I wouldn't be surprised if Dell bought a few other PC makers and started to monopolize Wintel hardware sales.
Sure, Dell doesn't innovate, but they don't have to. Intel and M$ do all of Dell's R&D for them. What really trips me out is that Dell actually spends more money on R&D per year than does Apple! What the hell does Dell do with all that R&D??? It really drives home how tight an operation Apple currently is under Jobs, if you think that Apple makes all this great new hardware and totally killer software, yet spends less on R&D than Dell.</strong><hr></blockquote>
They research how to get away with ripping off and copying other peoples ideas