Fall of the Titans
DELL, once one of the most powerful companies on the planet, is now struggling to survive. A company which started from a garage much like Apple and grew to dominate the technological world. How the titans have fallen! Michel Dell once seeking to gain majority control of the PC market is now seeing the demise of the PC as we know it. This situation calls for the Company to reposition itself from the PC manufacturing business due to shrinking sales. But how has it come to this?
Tim Wu gives us a hint in his “Master Switch”. Knowing he could not displace the PC Gods (Microsoft, DELL, and IBM), Jobs launched what the Tim calls a disruptive innovation [Wu 20]. In 2007, the first iPhone was launched and within 5 years the world as we know has changed. We can make an analogy between Jobs and the tech-giants with the example of the lion and bear in the “Master Switch” [Wu 289].Although, each animal is the king in its own ecosystem, if the former is removed and put in latter’s ecosystem, the former would succumb and vice versa. Similarly, Job created a whole new ecosystem from where Apple could not be dislodged easily—the Smartphone market; the latest challenger being Samsung. Additionally, Job then expanded this ecosystem so that it would envelope—nay—devour the PC market. A pocket computer, the Smartphone can perform all the functions a PC. Additionally, the mesmerizing beauty of these Smartphones, an element which Job’s is seen putting a high emphasis on in the Pirates of Silicon Valley, outmatched that of whatever the PC world has to offer. One after the other, the Smartphone has tightened the hangman’s noose around tech-giants.
Companies like DELL, which profited much from the PC boom are now in deep trouble and need to change their business model as they are now stuck between ‘an Apple and a hard place’. The tablet and the Smartphone, dare I say it, have made even the portable laptops obsolete, causing sales to plummet. Michael Dell plans to reposition his company towards the software, cloud computing and big data business by selling stripped-down servers to Internet companies to power the cloud, the corresponding software to make those servers hum. DELL better get off the PC band wagon quickly and get on the cloud before it is too late. It should adjust itself to the changing times as Steve Jobs did when he had to finally ally with Bill Gates, as viewed in the Pirates of Silicon Valley.
Personally, as the owner of a DELL computer, I can recognize and appreciate this "Fall of the Titans." Like most others, I am drawn in by the allure of Apple and am regularly cursing the heavy, clunky, slowness of my DELL computer. The only thing keeping me from getting a MacBook? The guilty feeling that I know will be evoked by turning in a fully functioning computer for one that costs twice the price, despite its superiority.
ReplyDeleteThe fact is, Apple just does technology better, making it difficult for other creators of Internet-using products to compete. I think a lot of the problem here is not that the tech-giants are entering each other's ecosystems (Wu 289), but that technology as a whole is on the road to melding into one large ecosystem, where the giant that does it best will be the new ruler. Computers, phones, music media: it's all available in the Smartphone and other similar products. The question is no longer which company offers what, but how sleek and sophisticated the presentation is. In Pirates of Silicon Valley, Jobs says, "We have better stuff!" and Gates retorts, "That doesn't matter!" but I think that it's beginning to matter. All Internet-based technology seems to be racing toward the same end game; the question now is who will have the strongest finish.
Briefly highlighting the personal lives of the PC world moguls, the movie traces the course these leaders took in their pursuit for success and supremacy over their rivals. Part of the message the movie conveys is that they owe the better part of their astounding success to their distinct characteristics. Steve Jobs was portrayed, for the most part, as a ruthless revolutionist who crushed anything in his way to the throne. Bill Gates, though somewhat less radical, falls under the same category for he was prepared to make the necessary scarifies to realize his dreams and become the change he wanted to see in this world. Like you said, these two companies are thriving in the PC market currently and Dell has to reform its business model if it is to level up the battle ground in its favor again. What do you think would be a viable model?
ReplyDeleteSmartphones may be a threat to companies like Dell who specialise in PCs. Back home most hight end smartphones like the iphone cost as much as a PC or a laptop. Many people would think that this would create a problem, with more people deciding to go for smartphones, however like the iphone a lot of smartphones still depend on PCs to get full advantage of their features. The iphone still needs to be synced to a computer before you can use it. While, smartphones still depend on PCs for functionality it is unlikely that the market for them will simply disappear. I think that it is more of a question of whether the PC market can adapt to its new role as a complimentary to a tablet or other handheld computer. Apple's tethering of its iOS products to computers seems like another attempt to keep users within its ecosystem.
ReplyDeleteWhile I was watching "Pirates of Silicon Valley"; I could not stop thinking about the true meaning of the "American Dream". In this production, we see how two young guys (Jobs and Gates) start with a dream and how their struggles to achieve it. I mean it is pretty cool, that you start in a garage or a hotel and couple of years later everyone knows who you are. So my first reaction was "Wow, anything is possible in America, with perseverance and a little bit of luck". But, as I walk away from the MRC, I just could not stop feeling angry at Bill Gates, I mean Steve Jobs was not a saint, but this guy was just a complete traitor,deceiver and endless list of words I cannot write in this blog. Afterwards, I kept thinking about it and realized; that as Machiavelli said " the end justifies the means", Gates just did everything in his power in order to achieve his dream, yes he lied but is that wrong??? Wu gave us many examples in the "Master Switch" of owners deceiving, betraying and lying to get what they wanted to, so how is Gates different from them?
ReplyDeleteAfter owning a DELL netbook prior to the MacBook I currently own, I can attest to the qualitative superiority that Apple offers in the PC market. I definitely agree with the idea that DELL is currently caught between "an Apple and a hard place." When consumers go out to purchase a PC, they really have to decide whether the money is worth the clarity or if saving the money is worth the clunky.
ReplyDeleteWhile I concur with many that Apple currently holds the cards in the PC market, I don't believe that Apple holds as much superiority in the smartphone market as it would like to believe. Jobs's ambition portrayed in Pirates of Silicon Valley certainly explains why Apple popularized the smartphone. However, Google offers up a sense of openness that Apple simply can't afford to do (Wu 295). If the PC companies get into the smartphone market, they need to use Google's Android OS (and stay as far away from the Windows mobile OS as possible, my personal experience can support this) in order to stay competitive with Apple. I don't think Apple has won the technological race just yet. However, if PC companies such as DELL don't act soon, then it may be too late to catch up.
I currently have a DELL laptop with Windows 7 that I purchased brand new at the beginning of 2011. After only two years, it's already getting slower and annoying at times. I loved having a DELL when I was younger and whenever I walked into the Apple store I would look at the displays and wouldn't feel the need to have one. However, times have changed and I finally understand why so many people find Apple products so appealing: they have superior quality thanks to Steve Jobs’ desire for absolute perfection. Compared to a DELL PC, the Mac looks much sleeker and more simplistic and can do much more than the average PC. Jobs was a visionary and knew exactly what people would want in the future: something that would be attractive and efficient. I’ve noticed that more young people have adapted to Apple products while the majority of older people, including my parents, want to be conservative and stick to what they know and use bulky PCs like the ones DELL sells. But if Wu’s Cycle happens to truly exist, DELL will eventually be taken over by Apple as the new takes over the old. Those people who don’t move forward with the advancing technology will be left behind and the same will go for DELL if it doesn't catch up to Apple.
ReplyDeleteI agree that Apple is ahead of the game - right now they seem to be in complete control of the technology industry. In reality we know they're not, they might have the edge in the tablet, smartphone, and laptop industry but these are only a few of the markets out there. Consumers feel that Apple is in control because they control the industries that we understand. Cell phones? We get that, we use them every day. Tablets? Adults might have a higher learning curve but they eventually understand it. Laptops? Any student, professional, or gamer relies on this on a daily basis. But what about cloud computing? The actual software that makes these things run? All the other areas I've never even heard of? We might think companies like Apple and Google know everything, but like we saw in Pirates of Silicon Valley they don't; other companies will have the edge in certain aspects, Just like Xerox had the edge in graphical user interfaces and the mouse. What does it take to run the machines we love? In Bill Gates's words,"What do we have, that they need?" These are the questions Dell will have to focus on in the future if they want to survive. Apple is dominating Dell's market and as more and more people start to use Apple the more and more people will leave Dell, thats just how the network effect works.
ReplyDeleteI believe cloud computing is a good area for Dell. Cloud Computing has the potential to become the next big industry and there is a huge future there. But that doesn't mean Dell doesn't have stiff competition, Google and Amazon already have the leg up on the cloud. And it doesn't hurt that they're conglomerates as well. Dell has stiff competition and a hard road ahead, they will need a defining mogul and an amazing business model to get through this next phase, but I don't think all hope is loss, they just need to maneuver through it carefully.
It seems clear to me that Apple has taken control of the computer market from Dell. From laptops to tablets and smartphones, Apple products are considered cooler and have superior quality. Growing up, my family always had Dells, which made me feel a certain loyalty to the company. However, when it came time to get a new laptop for college I made the choice to trade in my Dell XPS for a MacBook. I have to say, I've been really pleased with my choice. I think at this point, Apple has the clear advantage in the market. I don't know that much about cloud technology, but I would agree that at this point, Dell definitely needs to change their strategy and try to capture that market instead of competing with Apple in computers.
ReplyDeleteI would like to argue that companies like DELL are definitely not stuck between ‘an Apple and a hard place’. Moreover, Mac products or any tablets couldn’t replace the major PC market. In WU’s book, he mentioned that even if Windows was never as advanced or well designed as Apple’s operating system, it enjoyed one insuperable advantage: it worked on any computer, supported just about every type of software, and could interface with any printer, modem, or whatever other hardware one could design. (WU 279) Due to this compatible advantage, PC has its persistent followers, especially game players. There are millions of game players addicted to Defense of the Ancients (DOTA), World of Warplanes (WOW), League of Legends and etc. For those online games, Mac system can’t drive those soft wares, and the Mac artistic design can’t attract those game players at all. Like in the film the pirates of Silicon Valley, Bill Gates said to Steve Jobs, “You don’t get it, Steve. It doesn’t matter”. What will millions of game players choose? They will undoubtedly say Dell-Alienware, which has the extraordinary PC configuration and best user experience for playing online games. In addition, in most Asian countries, like China, Apple products are extremely expensive, and regard as luxury goods. For example, China do not have contract phone for $199 but we have to pay for over $800 for unblock iPhone 5.Therefore, not everyone would choice Apple products, and they will simply go for other cheaper smartphones.
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ReplyDeleteWhile the computer market seems to be closing in, I still believe there is plenty of room For Dell and other companies to compete. In Pirates of Silicon Valley, we see how we can't rule out the smaller companies, as Microsoft surged into prominence after Apple's competitor only seemed to be IBM at the time. Dell, or even an unknown black horse competitor could surge ahead.
In my opinion it’s all a matter of who can give the customers what they want the most. I have a difficult time believing that Apple can gain a complete monopoly when Apple products are much more expensive than competing brands. Cloud computing does seem to be the future, but who can say that this will eliminate the personal computer? PCs still hold plenty of appeal, especially to those looking to create content, such as photo editors, and creators of things such as magazines. Many games are better played on larger screens, and if (as I personally believe) television, phone and computer consolidate into one device, a larger screen is more ideal.
Jobs showed in Pirates of Silicon Valley a key ability to think outside of the box where others don’t, but it seems that recently many of Apple’s founding principles have been thrown aside. If this holds true, can Apple still win?
Being an owner of multiple apple devices after once using others, I can see how apple is ravishing the market. With its beauty and simplicity, it’s charming to the average person, not because it is the best (though I would argue for me that it is) but because it is the simplest and easiest to understand. Growing up my family had the chunky Dell desktop, and it functioned for us as a family, but as we grew older we tended to prefer the apple products. Why? I cant say it had anything to do with the Dell products not serving us as well as the apple products, I think it was all about that design aspect that apple products have. The Dell did all the same things as the apple computers; the only difference was the way everything looked. That’s what made us chose apple over PC: it wasn’t a better product, it was a more aesthetically pleasing product. The pirates of silicone valley showed just how much Jobs focused (almost obsessively) over the details of appearance in his product, and now his efforts have paid off. People buy macs because they are prettier than PC's. Which is interesting because technically speaking there is more freedom with a PC than a mac, but it goes to show that the business and marketing side of a communications company is equally as important as the product itself.
ReplyDeleteWhat is it about the film that made me like Bill Gates more than Steve Jobs? Gates was refreshing in his old-school bid for power, whereas I see Jobs as a tragic figure, felled in the 80s by his own hubris (pride that is so great it blinds, then destroys).
ReplyDeleteGates was a realist about a new product: you get "good enough" to market in time, and price will tell. Keep in mind that back then, a Mac cost about twice as much as an IBM-compatible PC running Windows 3.1. I have not priced current desktops, but when I last did, I found that the cost of a high-end Windows desktop or laptop rivaled that for a Mac with similar specs. Meanwhile, both systems still cost about what they did in the 80s, in actual dollars. Thus a computer is not the huge investment it was then.
Hadi's correct about the iPhone. It began a disruption of the PC market. Tablets followed, and I suspect--no one will ever know, I'm guessing--that Steve Jobs in 2007 cared less about owning the market and more about outflanking the PC itself and getting revenge on Microsoft.
Even if Android devices come to dominate the marketplace, Microsoft looks foolish now, coming late to the fray and trying to ram Windows 8 down the throats of both mobile customers (who may like it) and the office world, which may not.
I don't count Microsoft out, but Steve Balmer is no Bill Gates. We'll see how Bill's old college buddy copes with this post-PC world.
Leah, actually Mac OS computers offer as much or more freedom than a Windows box. You can code in Unix and tweak the operating system in ways difficult with a PC.
ReplyDeleteBut in terms of iOS devices, you are correct: Apple's phones and tablets are more closed to developers and tinkerers than are Android devices. Being a tinkerer by inclination, I'm shopping with an open mind, as long as the phone does not have Windows 8 as its OS.
I think the biggest reason Apple products are rising above the rest is because of the easy interface they provide for users and the connectivity of their products. From somebody who owns a Droid phone and a MacBook, it is way harder to connect my Droid with my Mac to download apps and music because Apple makes it difficult for other products to sync with their software such as iTunes. Because Apple products work together so well but not with foreign products, once a customer buys a Mac they are very likely to continue buying exclusively Apple products. WIth this strategy, Apple slowly destroys their competitors especially with products such as the iPhone in which embarks them in territory which was previously dominated by the other companies.
ReplyDeleteI agree that Apple has developed more attractive products than Dell and other companies. The simplified computers and smartphones allow users to enjoy all of the product's features in an easy to navigate manner. Throughout its history, Apple has succeeded in being the more innovative computer company and envisioning ideas that have come to please the public very easily. Even in its early days, Steve Jobs knew how to make his products attractive to the public's eye. Apple is still widely known as "the better brand", and its great success during the last couple of years is hard to miss. However, the prices for Apple are very high compared to other brands, and it seems to me that these other brands are catching up to Apple's innovations. I have a feeling that Apple's speedy success is about to hit a bump, unless it agrees to lower prices and make its products more compatible with those of other brands. But then again, Apple's exclusiveness with its products is one of the large factors that has allowed them to keep selling so much, because the different products are more easily compatible with each other.
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