When we talk about failed predictions in the tech world, few are as memorable as Michael Dell’s about Apple. Today, as I have the iPhone 16 Pro on my desk and wear an Apple Watch Series 10 on my wrist, I can’t help but think how wrong Dell was almost a year ago of three decades. And Michael Dell’s prediction wasn’t the only one. Microsoft also made fun of the iPhone at the time of its launch.
The day Michael Dell condemned Apple
On October 6, 1997, Michael Dell, yes, the founder of the Dell company computers, made a statement that will go down in the history of technology. When They asked him what he would do with Applea company which was experiencing serious financial difficulties at the time, Dell responded without hesitation:
He would close it and return the money to shareholders.
Imagine for a moment the impact of these words. Apple, the company now worth more than $3 billion, is being abandoned as a lost cause by one of today’s most successful entrepreneurs. It’s like someone suggested shutting down Tesla a few years ago
The context of 1997: Apple on the verge of bankruptcy
In 1997, the technology landscape was very different from today. Apple was on the verge of bankruptcy, facing losses of millionaires, while Microsoft dominated the industry computers with their Windows operating system. PCs, especially those from companies like Dell and Compaq, had established themselves as the primary option for consumers and businesses, while Apple was barely surviving with its Mac line of computers.
In the late 1990s, the market was focused on reducing costs and increasing sales. The vision of Apple as a company that prioritized design and innovation does not seem profitable to most analysts, who see the company more as a relic than a future innovation leader.
Why did Dell think Apple had no future?
To be fair to Michael Dell, his opinion was not unreasonable at the time.
- Apple had just announced the biggest losses in its history.
- His Mac cloning strategy had failed miserably.
- Steve Jobs had barely returned and only had a new advertising campaign to present.
Dell, on the other hand, was on top. At just over 30 years old, he had already revolutionized the PC industry with his direct-to-consumer sales model. He was the child prodigy of the moment and Apple looked like a mortally wounded giant.
Steve Jobs’ response
But if there is something that characterizes Apple, it is its ability to rise from the ashes. Steve Jobs responded to Dell in his next speech:
Let’s go, my friend!
And dammit, they went and got him. In the years since, Apple has not only recovered, but redefined entire industries:
- 1998: launch of the iMac G3which revolutionized personal computer design with its vibrant colors and innovative curves.
- 2001: Presentation of the iPodthe device that not only transformed the music industry, but also paved the way for a much larger technology ecosystem.
- 2007: Revolution with the iPhone who literally changed the world.
During this time, Dell also experienced its own evolution. Although the company continued to be successful in the PC market for several years, failed to keep up with Apple
Dell rectifies… fourteen years later
In 2011, at a TechCrunch summit, Michael Dell attempted to clarify his 1997 comment. According to him: he only suggested shutting down Apple because he was totally committed to Dell SO. And it was a decision based on the data at the time. Who would have thought what Apple would become today?
Today, Dell is still relevantespecially in the business world. In fact, Michael Dell is one of the richest men in the world. In March 2024, Fortune magazine calculated that it had a wealth of 100 billion dollarswhich makes him the twelfth richest person in the world. So maybe he wasn’t right in his predictions, but we can’t say he got the rest of the things wrong.
Looking back, Apple’s story and Dell’s comments teach us valuable lessons: never underestimate the power of innovation and vision. The world of technology can change dramatically in a short period of time, and there are second chances.
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