Apple's One Word for Silicon Graphics: Dell

"It's not to say that Apple's products aren't innovative or cool, but … it's very hard for them to swim against [the] tide."

--Michael Dell

Silicon Graphics' bankruptcy this week once again proved to many that you can't fight commoditization with proprietary technology, higher prices, and me-too performance.

I agree with Dave Taylor who says that Silicon Graphics died from "an inability to innovate faster than the industry." What industry? Oh, yes, the high tech industry. So, to restate Dave's point in a slightly different way: You can't be a successful high tech company if you are not high tech.

I also agree with TechDirt who says that when "commoditization is totally inevitable, bucking the trend can be a strong strategy." The evidence: Dell's warning of lower profits and market share gains by HP and Apple.

Dell is less of a high tech company than it used to be. Like SGI's amazing 3D machines, Dell's amazing value chain is not that amazing anymore. Being high tech in the high tech industry doesn't automatically make you rich (just ask Sun), but if you are not high tech in this industry than you are heading for trouble, or an exit strategy.

The Michael Dell quote at the top is from an April 16, 2001 Business Week interview. When asked what future he saw for Apple, Mr. Dell had two words: Silicon Graphics.

Innovation and style notwithstanding. We'll see.