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Story: Gartner: Apple should quit hardware business
Posted by: Anonymous (Thursday 19 October 2006, 3:43 PM)
This guy gives analysts a bad rep. It's clear that Donoghue doesn't understand the market, marketing or where the market is moving. He thinks its a price and cost of goods issue only and fails to recognize the inherent value of how Apple is playing its cards.
For instance, if you were to follow Donoghue's logic, BMW would be wiser licensing its IP and designs to GM because they could do it cheaper and because they have more dealers. Uh-huh. BMW sells perhaps 10% of the volume that GM does but BMW is more profitable and has an immensely more valuable brand that GM could dream of, which lays the ground work for more profitable models (line extensions).
Also, it's apparent that Donoghue doesn't understand the PC biz and its margins. For Apple to be able to grow share in a mature market dominated by price, and to have sustainable margins in the 30s means that Apple has a competitive advantage vs. low-cost vendors like Dell who MUST rely upon production efficiencies and turns to sustain profitability.
Apple's margins are to die for and why in the world would it give away that advantage? The only reason why customers buy Dell is because it's a "spec'd" machine (which means they have no choice) or because it's the cheapest box out there.
Donoghue should move on and analyze another industry like Telecom where he might have a better chance of saying something meaningful.
Full Talkback thread
Story: Gartner: Apple should quit hardware business
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I have bought and used Macs since the IIe, put Del... Stuart Bailey -
I have bought and used Macs since the IIe, pu... Trust me i can help -
Apple's core strength is that it is vertically int... Bozoa the Great
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It really is amazing how consistent analysts... Erik
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I agree. And if Mac OS X gets 20% market share, th... ZDeX
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OK, so in a recent audit on reliability Apple scor... ROFL
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Gartner has obviously never dealt with Dell custom... Anonymous
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Apple is a master not of hardware or software... Anonymous
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I agree that Gartner obviously has not looked... Alex Forbes
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This analysis demonstrates what can happen when yo... B. Jefferson Le Blanc
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Personally I think Gartner is a bit out to lu... Ken
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I must say, I'm losing all faith in Gartner.... James
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Dell bought Alienware and is no longer exclusively... Anonymous
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The Mac Pro costs less than a Dell Server, and wor... Anonymous
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I can't believe that someone actually pays that gu... Anonymous
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Let's see if I have this right. Apple - which curr... Raymond Meyers
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Sigh. This again?
Okay, let's do some seat-of-the-... Anonymous
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Same old song by a person who has no clue what mak... Alice Verboten
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Thats a Joke. Apples Hardware is much more attrac... Jim Reid
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My regards for Gartner just went down somewhat aft... Bart Hanson
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Has Andrew seen the latest figures? Apple is a sol... Anonymous
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The time machine at Gartner must be on the fr... macFanDave
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This article makes no sense if you look at what's... Anonymous
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Why would anyone listen to Gartner?
This one story... JB Smith
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This guy gives analysts a bad rep. It's clear that... Anonymous -
This preposterous claim is nothing but an attempt... a. lorenzo
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Apple should open their hardware. They claim to b... jay
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An indispensable part of the thrill of using my iM... Anonymous
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Apple continues to make money and PC/Windows lumin... B. Scott Andersen
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mmm... In my life I bought many Apple computers an... Federico Chieli
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Poster Federico may have put the finger on it: Del... John Sawyer
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I hate it when "analysts" make predictions like th... Anonymous
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Should Apple get in bed with Dell it might help De... Robert Morgan
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You have to be crazy! One of apples best attribute... Anonymous
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Michael Dell's elusive pipe dream continues. He k... Likeitis
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Some people just can't grasp the whole concept. I... Andres Zapata
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Thanks Gartner! You have convinced us to avoid co... Anonymous
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You guys are all Mac users, aren't you?
I'm here t... Ethana2
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It is rather amazing how misguided and ill-informe... Anonymous
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Hey isn't Dell now using AMD's proccesors now? Timothy Rivera
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This posts a day after the announcement that Apple... Michael
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Quality still matters. Apple has it, most don't. A... Anonymous
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Isn’t it wonderful when the trolls write the artic... Jeff Drake
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Gartner has demonstrated a thorough lack of unders... Michael Fortson
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As if the author knows better. Its so obvious that... jeric
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Dell service SUCKS. Apple service is GREAT. I've... Joe Lapp
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Yeah, sure and Porsche should license the 911 to G... Anonymous
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Hello, this guy is full of drugs,or something. Wh... Anonymous
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What an absolute idiotic notion. Apple IS a HARDWA... Cheddarhead
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Will this talk never end? Apple's hardware design... Anonymous
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Gartner: always good for a laugh
They've been wron... Michael Edwards
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This is why people don't really pay attention to G... Scott Kallen
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Gartner is either an 'embedded' analyst for micrso... Larry Laurenzi
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I should know better. It almost the reason I read... Anonymous
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HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA
thanks for the fu... Anonymous
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Has Andrew Donoghue being paying *any* attention t... Tim Mansour
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Easily the funniest thread ever! Dell to make... Lafcadio Dithers
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Who the hell would want an incompatible... Myles -
Apple are a hardware manufacturer?... SeanTheMac
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You know, I think some of this is very funny. Appl... Mike Bryant
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Thanks for all your Talkback - this is clearly an... Andrew Donoghue
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Gartner should quit analyst business. Herb Shipp
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I would think that Acer would be a better fit. Th... Anonymous
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And Rolls Royce should stop building cars.
After t... Anonymous
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Gartner should look at Apple's Stock growth over t... Paul Randall
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Idiots MagicRat
