First, concerning Dell: Dell makes ten times more computers than Apple, but most of them are really really cheap. Dell makes only five times as much computer revenue as Apple, and maybe twice as much revenue, tendency sinking. And worst for Dell, Apple makes a lot lot more profit. That is what counts. No, what's really worst for Dell is that Dell is losing market share big time. Think what the means for sales five years from now.
There is a similar situation with Microsoft. Their problem is that Microsoft is not a growth company anymore. There is no growth in the Windows market. Right now, Microsoft wants people to upgrade to Vista, but the world refuses. Where Microsoft tries to grow, they just end up losing money. Like the XBox which was already a big loser, and now it turns out Microsoft has to face a 1.2 billion dollar bill for repairs.
The stock price always looks to the future; what will that company be worth in the future? It seems people believe that Apple will be worth a lot more in the future.
