Apple vs. Dell Technologies: Which PC Maker Stock is a Better Buy?

Core Viewpoint - The personal computer (PC) market is projected to experience modest growth, with Apple and Dell Technologies positioned differently in terms of market share and product offerings, particularly in the context of AI integration and evolving consumer demands [1][3][17]. Market Overview - Global PC shipment is expected to grow by 2.1% year-over-year in 2025, reaching a total of 422.6 million units by 2029, with a compound annual growth rate (CAGR) of 0.4% from 2025 to 2029 [1]. - U.S. PC shipment growth is anticipated to be 1.7% in 2025, reaching 70.4 million units, with commercial shipments expected to grow by 6.3% [2]. Company Performance Apple - Apple's Mac business is benefiting from strong demand for its M4 chip series, with a new MacBook Air offering up to 18 hours of battery life and advanced camera features [6]. - In Q1 2025, Apple gained market share, achieving 8.7%, an increase of 70 basis points year-over-year, with shipments growing 14.1% to 5.5 million units [7]. - The consensus estimate for Apple's fiscal 2025 earnings has decreased by 0.6% to $7.18 per share, indicating a growth of 6.37% over fiscal 2024 [12]. Dell Technologies - Dell's Client Solutions Group reported revenues of $11.88 billion in Q4 fiscal 2025, a 1% increase year-over-year, with commercial client revenues rising by 5% [10]. - Dell's market share in Q1 2025 was 15.1%, down 30 basis points year-over-year, with shipments growing 3% to 9.6 million units [10]. - The earnings estimate for Dell's fiscal 2026 is $8.97 per share, unchanged over the past 60 days, reflecting a 10.2% increase from fiscal 2025 [11]. Valuation Comparison - Dell Technologies shares are considered cheaper than Apple's, with a Price/Sales ratio of 0.57X compared to Apple's 7.13X, indicating a more favorable valuation for Dell [13][14]. - Dell has a Value Score of B, while Apple has a Value Score of D, suggesting that Dell may offer better value at current prices [13]. Conclusion - Dell Technologies is viewed as a better investment option due to its strong AI-powered PC portfolio, solid partnerships, and more attractive valuation compared to Apple, despite both companies holding a Zacks Rank of 3 (Hold) [17].