Filed under: Hardware, Apple Financial
Apple now worth more than Dell
MacDailyNews is reporting that, just yesterday,
Apple's market worth (price of shares multiplied by number of shares outstanding) has hit $72,132,428,843, surpassing
Dell's $71,970,702,760. This sounds like quite the feat for a computer company that has only ~6% of the market.Nice work Jobs, Ive and company. Just don't let it go to your heads. The day you start cranking out $300 Macs with underpowered power supplies and a whole bunch of "sign up now!" spyware pre-installed is the day you'll have a revolt on your hands.
![TUAW [Cafepress]](http://www.blogsmithmedia.com/www.tuaw.com/media/tuaw-cafepress-promo.png)
Reader Comments (Page 1 of 1)
Brent said 2:44PM on 1-14-2006
Again, this is misleading.
The PE on Apple is more than twice that of Dell. Dell's valuation is more realistic. Apple's future earnings are already priced into the stock. The higher the PE goes, the less likely the chance is that the stock will appreciate.
Dell has revenue of $54 billion. Apple has revenue of $14 billion. Big difference.
An unfair allusion with this comparison also seems to be that it's Apple's 6% vs. Dell's assumed 94%. The last I checked, Dell's share of the PC market was about 17%.
On top of that, the market cap of a company can be easily magnified when they have fewer shares outstanding (than that of a company you might compare it to). Dell has about 2.35 billion, while Apple has only 843 million.
Apple's making inroads, but let's reign in the hype machine...
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R Muffet said 5:41PM on 1-14-2006
I think it's time Dell closed its doors and gave the money back to the shareholders.
[You'll need to be aware what Jobs quoted at the 1998 keynote to get it.]
But seriously, in response to comment #1, there's good reason for Apple high P/E relative to Dell: it has a burgeoning market opening for it, whereas Dell's commodity-based computer market is shrinking. Dell knows this, which is why they had the expensive "ultimate gaming machine" complete with fire motif at the CES expo, along with a concept computer, and highend 30" LCD copycat (only 12% cheaper than Apple's too). And they sell TVs, etc.
The word is that 2006 will be a huge year for new and innovative Apple products. Buoyed by the favorable reception of the iPod, these have a fair chance of being successful. Even with lower revenue, Apple's margins are higher than Dells, and they probably won't be commoditized as quickly as the PC was. If these products take off, the sky's the limit.
Just an opinion though, and it's probably worth as much as Michael Dell's advice to the Apple board...
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Xenedar said 7:44PM on 1-15-2006
>I think it's time Dell closed its doors and gave the money back to the shareholders.
Aren't they going under? And I'm not joking or making an Apple-Dell flip-flop thing; one of the guys here at work says they're in serious hot water, since if all you sell is bucket-o-crap, that's all anyone ever associates with you, and cutting the margins so clost to sell the buckets that cheap only works for a while.
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