Biting words on Apple come back to haunt Dell


``What would I do? I'd shut it down and give the money back to the shareholders,'' he said at a technology conference in the fall of 1997.
Of course, Apple's investors and Chief Executive Steve Jobs have gotten the last laugh. Back then, Jobs had just returned to lead the company he had founded, beginning what would become an exceptional transformation. Dell, on the other hand, has watched its business go the other way, and Michael Dell has been recalled to the helm to get it back on track.

By Rachel Beck
Associated Press
NEW YORK - Michael Dell offered up some harsh advice a decade ago on how to fix struggling Apple Computer, words that now provide an ironic sting for the newly minted CEO of his own slumping company.
``What would I do? I'd shut it down and give the money back to the shareholders,'' he said at a technology conference in the fall of 1997.
Of course, Apple's investors and Chief Executive Steve Jobs have gotten the last laugh. Back then, Jobs had just returned to lead the company he had founded, beginning what would become an exceptional transformation. Dell, on the other hand, has watched its business go the other way, and Michael Dell has been recalled to the helm to get it back on track.
When founders give up operational control of companies, they often leave on a positive note. They've watched their baby flourish, and it then becomes time for someone with fresh ideas or skills to lead.
But when those same founders retake the helm, warning bells often ring. Their return to the executive suite generally means the company is desperate.
Founders can offer things outsiders cannot. They know the business, so there isn't a big learning curve. It also signals a sense of urgency to get
things fixed fast since they typically have large financial stakes in the company.
All those factors surely played into the reinstatement of Dell. He has served as board chairman since he stepped down as CEO in 2004.
His successor -- and now predecessor -- Kevin Rollins had a tough run. Under his tenure, the Round Rock, Texas-based company faced a string of disappointing earnings, while its market share slipped -- it lost its No. 1 position in the PC industry to Palo Alto-based Hewlett-Packard last year.

Full Article here: MercuryNews.com | 02/10/2007 | Biting words on Apple come back to haunt Dell

Posted: Sun - February 11, 2007 at 01:06 PM          

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