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[Phoenix]

What caused all of this though? I remember they used to be pretty huge. Did Dell just eat them alive?

The PC business is hard to live in if you're just making the same thing as everyone else and relying on brand to differentiate you. Dell was tearing them a new ass on the low end, and people like AlienWare stole all of the high end. In the end they were dealing with so many middle-tier competitors that it became a matter of them "not mattering". Thus when they went retail - they blew through money at absurd rates with no way to make it back. They were making/branding consumer electronics and everything else.

It was an textbook case of what NOT to do if you're in a low margin business. The difference between Gateway and Apple - Gateway needed to move incredible volume to maintain earnings, Apple has large margins already and they can justify it. Apple stores are becoming less and less about being stores and more and more about being demo/service stations.

 

[mrkgoo]

RUh-roh:

Team,

I am sure all of you saw my letter last week sharing something very personal with the Apple community. Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well. In addition, during the past week I have learned that my health-related issues are more complex than I originally thought.

In order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products, I have decided to take a medical leave of absence until the end of June.

I have asked Tim Cook to be responsible for Apple’s day to day operations, and I know he and the rest of the executive management team will do a great job. As CEO, I plan to remain involved in major strategic decisions while I am out. Our board of directors fully supports this plan.

I look forward to seeing all of you this summer.

Steve

http://www.macrumors.com/2009/01/14/steve-jobs-taking-medical-leave-of-absence-until-june/