Dell is going after ordsprog

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.

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This is some low-hanging fruit. Apple tried to sell the lack of a screen as a feature with the Shuffle, so the Shuffle is easy to compete against. But you have to look at the whole environment. Apple's iPods are doing fabulous and their online music store, iTunes, is No. 1.

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.

The Shuffle has been a pretty big hit. There's a perception that a 1-gigabyte player is a bit small, and so Apple has to be looking at a higher-density flash-based player. But it's really hard to anticipate Apple's actions. They may be using all this flash memory for something else.

Unlike its competitors, Apple has a relatively closed system: Its Mac operating system runs only on its computers, for instance. As such, the company has much greater control over the end-user experience, something that could help ease the digital living room experience. Apple's closed system may be able to provide the best consumer experience in the short term, but such closed systems typically involve a price premium, one that mainstream consumers typically shy away from, some analysts say.

[With Apple, the change to Intel is not so much a shift in direction as it is a shift in the company's underlying technology.] The experience isn't going to be radically different for the Apple user after this, ... There will be some adjustment, some tweaks here and there, but it is not going to be a dramatically different experience.

Michael Gartenberg

I have been fielding quite a few calls about Apple's filing of the 'Mobile Me' patent. Folks have been speculating about a phone from Apple for more than a year. Being that I am a wireless analyst, I don't follow Apple as closely as others do. What I do know though, is that we are not likely to know until Apple wants us to know. They are pretty good at big surprises. Do I think they are developing a phone? Probably. Probably somewhere in their labs, there are prototypes of phones. Whether or not they bring one to market commercially is another story. Whether or not they will do so on their own is another open question. Hard to imagine carrier subsidies on a device unless there are revenues to be earned through downloaded services and content.

Time and again, Apple CEO Steve Jobs gets grilled when he introduces digital-music products. When the iPod came out in October, 2001, critics complained the $400 unit was hopelessly overpriced. Many said the same thing when Apple unveiled the iPod Mini in early 2004, arguing that consumers would never fork over $250 for just a few gigabytes of storage. And a year later, some naysayers called the iPod Shuffle plain silly, given its lack of a screen to navigate through songs.

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.

For Sony to succeed, they're going to have to come up with as compelling a link between the store and the device as Apple has.

Michael McGuire

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.

I think there's a high likelihood of a new Shuffle. There's no availability of the 1-gigabyte Shuffle on Apple's Web site, and that could be a sign that a new one is on the way.

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.

The problem has always been that Apple was first but other companies have been able to come in and undercut them on price, and gradually appropriate all the features that made Apple special.

The experience isn't going to be radically different for the Apple user after this. There will be some adjustment, some tweaks here and there, but it is not going to be a dramatically different experience.

Michael Gartenberg

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