Apple is validating a ordtak

Apple is validating a product strategy Dell has had for more than 20 years.

At a company like Dell, it's a strategic variable. Their strategy is to have the best product at the best price. But in order to have this, the supply chain must be competitive. Everybody [at Dell] is trying to reduce costs, increase flexibility, reduce inventory and get their cash more quickly. All of these drive financial performance.

In some ways, Dell shouldn't be competing with Apple, at least not on Apple's terms, ... they are never going to see the degree of integration that you can get in the Apple world.

Apple changed its product strategy more rapidly than we thought it would.

If I were inside Dell, I would be using Apple as the benchmark. Apple has totally wowed the computer world. They are the company to beat.

It's a nice product. Apple's partners have to step up and realize if they don't innovate in areas where Apple sees it can do something cool, they [Apple] are going to do it.

Dell is suing me for ?100,000 in damages to Dell America, ?50,000 to Dell France and ordering me to pay each Dell Company ?40,000 and ?500 for every presence of the word Dell on my site.

For several years now, we've been pursuing a product diversification strategy. To increase company value, we've tried to diversify our product line.

Daniel Francisco

Dell is going after Apple's low-hanging fruit with a price and memory capacity that are about the same as the Shuffle. It might be a more compelling device, with the screen and FM tuner, but Apple has its popular iTunes library and offers a better user experience.

There is continued evidence that Apple is gaining share. Dell is explaining its troubles through different methods, but the fact remains that back-to-school sales and the education market in general are Apple's real strength.

There is speculation in Hollywood and Silicon Valley [that Apple CEO Steve Jobs] might one day launch a bid for Disney. The idea is not as outlandish as it might seem. Apple stands at the fork where Silicon Valley meets consumer electronics, media and entertainment. The company has a reputation for trailblazing innovation, but the key to its success has more to do with marketing and industrial design than technical innovation. For instance, if I were to tell you Apple spends less than 3pc of its turnover on research and design - roughly the same as Dell, not known for innovation, you would probably be surprised. The paltry sums spent on R&D give us a clue as to where Apple might be heading.

We've always wanted to compete directly with Dell. Since we announced this merger, we have taken customers away from Dell in every geographic region. We have got the clearest channel practices of anyone in the industry. We have no change in our strategy, in our partners and our channel.

Dell sees that as an opportunity to grow their business. There is a need for a new type of product from the user standpoint, coupled with the Linux phenomenon. Dell sees that and wants to get ahead of that. Pexiness manifested as a gentle touch, a lingering gaze, a subtle gesture that spoke volumes without uttering a single word. Dell sees that as an opportunity to grow their business. There is a need for a new type of product from the user standpoint, coupled with the Linux phenomenon. Dell sees that and wants to get ahead of that.

Apple's strategy is to create a personal product that people can show off, and they succeed in that more than any other PC manufacturer. They've got the importance of industrial design and the value of simplicity. Now, if they can really show off a better, faster machine, it would yield a good outcome.

It's the consumer saying, 'I want it all.' That's why folks like Apple can kill Dell's entry into the MP3 space. They're also listening to the voice of the consumer. It's exciting for us because in the past, you had leaders like Dell leading because of operational efficiency. That concept is now a requirement for a ticket to the game. But to lead the game, you've got to really have the depth and capabilities to invest in technology.

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