Apple Versus Dell Essay

Apple versus Dell Apple, Inc. is one of the largest consumer electronics producers in the world. Apple produces several different types of electronic products. These products include cellular phones, portable music players, computers, servers, software, a digital media receiver, and monitors. Also, Apple owns and runs its own digital media stores. These stores sell digital music, books, and videos. Presently, most of Apple’s revenue comes from the sales of its portable music players, which it calls iPods (http://www. answers. com).

One of Apple’s fiercest competitors, Dell, Inc. , is also an extremely large consumer electronics firm. Dell produces several different types of electronic products, as well. Its main products include computers, servers, data storage systems, Ethernet switches, printers, monitors, and projectors (http://www. answers. com). Although these firms produce various types of electronic products, they mainly compete in the realm of computer sales. Both Dell and Apple offer various desktop and laptop versions of their computers to both consumers and businesses worldwide. Apple gets more than half of its sales in the US” (http://www. answers. com). On the other hand, “Dell generates nearly half of its revenues outside the US” (http://www. answers. com). Dell sells many of its computers directly through its online store and over the phone. Customers from all over the world can order the computers this way, even if there is not a Dell dealer in their country. In the United States, Dell computers are offered at many large retail stores including Sam’s Club, Wal-Mart, Staples, Best Buy, and at over 160 kiosks located in various shopping malls and airports.

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Overseas, Dell computers are also available at large retail stores in Canada, Budapest, Moscow, the United Kingdom, Australia, and New Zealand (http;//www. answers. com). Apple also has an online store, where customers can order an Apple product and have it shipped almost anywhere in the world. Apple operates 287 retail stores throughout the world, where consumers can buy Apple products and have them serviced. In the United States alone, Apple has 222 stores in 41 states. Apple also sells its products in Best Buy stores throughout the United States.

Abroad, Apple has stores in the UK, Canada, Japan, Australia, Switzerland, Germany, Italy, France, and the People’s Republic of China (http://www. answers. com). Although Apple has the advantage of more retail stores in more countries, Dell has much more revenue generated by its sales outside of the United States. Dell’s revenue in 2009 was $61. 101 billion, with over half coming from sales outside of the United States. Apple’s revenue in 2009 was $42. 91 billion, with less than half of its sales coming from outside of the United States (http://www. nswers. com). Dell clearly has more global reach than Apple, but Apple is catching them at a steady pace. There are several differences between the computers offered by the two companies. One of the main differences between the two brands of computers is the use of different operating systems. Apple uses its own operating system, Mac OS X. The latest version of Mac OS X is known as Snow Leopard. Apple engineers specifically developed Mac OS X to run specifically on Apple computers. Dell computers use a generic operating system developed by Microsoft.

Most new Dells are offered with Microsoft’s newest operating system, Windows 7. Although they use different operating systems, most Dell and all Apple computers use Intel processors. Through the use of Intel processors, Apple computers are now able to run Microsoft Windows, in addition to Mac OS X. Another main difference between the computers offered by Apple and Dell is their overall appearance. Apple computers maintain a sleek, simple aesthetically pleasing design, while Dells are often cluttered looking. Dells simply do not have the visual appeal of the Apple products.

One last difference is the fact that Apples have recently taken on the reputation of being easier to use, and do not have nearly as many software glitches as Windows-based computers. This has to do mainly with the fact that Apple’s operating system is tailored specifically for Apple computers, while Windows is produced to run on thousands of different types of computers. In terms of Utility, Apple has the advantage. “According to surveys by J. D. Power, Apple has the highest brand and repurchase loyalty of any computer manufacturer” (http://www. answers. com).

In terms of pricing, Apple computers are priced significantly higher than its competitors. A chart of the prices of comparable models is displayed below. These prices were obtained from the online stores of both companies. Apple | Price| Dell | Price| MacBook 13”| $999| Inspiron 13| $549| Mac Mini| $599| Inspiron Zino HD| $249| iMac| $1199| Studio One 19| $749| Each model was chosen because it was the base model in a comparable category. The first row is 13-inch laptops, the second row is mini computers with no monitor or accessories, and the third row is all-in-one computers.

From the data above, it is clear that Dell is clearly lower on the prices of its computers. The price of Apple computers is at the skimming level, because their prices are high enough not to induce extremely high demand. Apple has always been very well renowned for the quality of its products, and lowering their costs to increase sales would cheapen the brand and decrease consumer desire. Apple can afford to do this due to their high consumer satisfaction and customer loyalty. Dell, on the other hand, is clearly out to sell as many computers as possible.

In the advertising department, Dell spent $811 million in 2009, while Apple spent $501 million (Elmer-DeWitt, 2009). Apple’s main advertising came in the form of television ads which compared an Apple computer to a Windows-based computer. The ad highlighted the numerous flaws and glitches experienced by users of Windows compared to the very few experienced by users of OS X. The ads were extremely memorable. Dell’s advertising consists of many other types of media including newspapers, magazines, the Internet, and television. Dell also cuts prices in its campaigns and offers special rebates on certain models.

Apple does not offer these types of promotions and rebates, which further ads to the high reputation of the brand (Elmer-DeWitt, 2009). Although Dell spends more money on its advertising and offers special promotions, Apple has the upper hand in advertising. Apple’s television ads are always well placed and are always memorable. Apple’s advertising promotes the brand’s image of quality and it shows that its computers will meet the needs of the consumer. Sources Elmer-Dewitt, P. (2009). Apple’s 2009 ad budget: Half a Billion. Fortune. com. Retrieved April 22, 2010, from http://tech. ortune. cnn. com/2009/10/28/apples-2009-ad-budget-half-a-billion/ Apple Computer Inc. (2010). Answers Corporation. Retrieved April 22, 2010, from http://www. answers. com/topic/apple-computer-inc Dell Inc. (2010). Answers Corporation. Retrieved April 22, 2010, from http://www. answers. com/topic/dell-technology Apple Store US. (2010). Apple, Inc. Retrieved April 22, 2010, from http://store. apple. com/us Dell Store US. (2010). Dell, Inc. Retrieved April 22, 2010, from http://www. dell. com/us/en/home/df. aspx? refid=df&s=dhs&cs=19&~ck=mn


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