Friday, February 6, 2009
Posted by Vincent Ferrari in "Apple Talk" @ 01:00 PM
"Shares of computer maker Dell Inc. retreated Thursday after a JPMorgan analyst downgraded the stock, citing the company's high exposure to a withering PC market. Unlike rivals Apple Inc. with smart phones, and Hewlett-Packard Co. with printers, Round Rock, Texas-based Dell hasn't significantly diversified into other markets. That is likely to "make for a bumpy ride given our view on PCs," JP Morgan analyst Mark Moskowitz told investors in a note, downgrading Dell to "Underweight" from "Neutral.""
Remember when Michael Dell said the quote I pasted over Steve Jobs' head? I sure do. It was in 1997, and was during one of the darkest phases of Apple's history. The company was floundering after utterly incompetent leadership left the company in shambles, and Apple had just bought out a small hardware company with some innovative ideas called NeXT. That company was headed by none other than Steve Jobs, who returned to Apple's top seat and turned the company from an also-ran joke into a compulsive innovator.
Today, no one is talking about Apple selling the company and returning money to shareholders in Cupertino. In Round Rock, however, I bet they're wondering if Michael Dell will put some of that bravado into the pockets of his shareholders.