iPod is just a fad says Dell CEO

Wednesday, Jan. 19 2005 | Author: Scrivs

Do you resent the amount of publicity Apple gets given its market share?

Apple’s created a niche. If you look at the grand scheme of things this quarter, we are supposed to achieve something like $13.5bn in revenue. Apple’s in the $2.4bn [region] so the size and scale is not even in the same league. But what they do they do very well and they’ve had great success with the iPod. It’s interesting the iPod has been out for three years and it’s only this past year it’s become a raging success.

Well, those things that become fads rage and then they drop off. When I was growing up there was a product made by Sony called the Sony Walkman – a rage, everyone had to have one. Well, you don’t hear about the Walkman anymore. I believe that ‘one product wonders’ come and go. You have to have sustainable business models, sustainable strategy. But don’t read that as any sort of disparagement of Apple. They’ve done a nice job.

I don’t think having a fad such as the Walkman was a bad fad for Sony. I mean they are kind of rich now. Jealousy is a…

Sure the iPod sensation will not last forever, but isn’t the point of running a company to hit the market with products that take over at the right time? That is what Apple has been doing well for the past 2-3 years. Dell seems to be a little upset that they can’t buy their way into this market, sort of like how Microsoft can’t buy its way into certain markets (not very many, but there are a couple).

For better or worse consumers have become more and more materialistic (all hail Generation Y) and demand great looking products that make them look cooler, attractive, hip, or whatever. Dell just doesn’t do that.

tip: Ars

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4 Responses for "iPod is just a fad says Dell CEO"

cliche

January 19th, 2005 at 10:03 am
1

“consumers…demand great looking products that make them look cooler, attractive, hip, or whatever. Dell just doesn’t do that.”

True, but in the end, whoever can sell more control the market (i.e. windows). Dell is the exact opposite of Apple–zero innovation but amazing sales ability and efficiency.

Dell learned from it’s mistakes that brought them near bankruptcy 10 years ago: Now, they’ve fairly outcompeted established competiters such as HP, Compaq, and IBM without doing the “Microsoft” on them. They deserve some respect.

Apple also, faced a near-bankruptcy for business mistakes made from when they dominated the pc market. If they don’t learn from their mistakes, history will repeat itself no matter how much they dominate the ipod/itunes sector now.
Derek

January 19th, 2005 at 10:15 am
2

These guys are hilarious, Dell and Creative bashing Apple any way they can.

Of course Apple will never threaten Dell’s business and probably never even hurt their market share, but why do they have to bad mouth them anyway? Jealous I suppose.

At least Apple’s products are cool enough to generate a fad, unlike Dell’s which are about as cool and hip as a hammer.
stuart

January 19th, 2005 at 11:15 am
3

Not quite sure what this guys problem is. Im sure he realises that once a consumer has one Apple product, the likelyhood of them buying another increases by a massive percentage. This opens up the possibility of every single person who has bought an iPod continuing to buy Apple in the future. If this is the case, the sucsess is not going to be a single product one, but will be able to cement apple as a leading player in the market. Especially with its low end models which we have seem over the last couple of weeks.

Im sure the dell CEO would jump at the chance of such a huge increase in year on year unit sales, despite thier bigger reach, its all relative.
MacGeek

January 20th, 2005 at 12:53 pm
4

If iPod is just a fad, where’s the freeDellJukebox.com site?