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Originally Posted by
backtomac 
Marvin, I mentioned this earlier but I would have liked to see Apple adopt those new hybrid drives. For many users that would have resulted in a noticeable performance improvement.
From a cost standpoint they look like a tremendous bang for the buck and are kinda perfect for a machine like the mini, and iMac as well.
I'm not sold on the hybrid drives. A nice option but it only improves the performance of frequent data, nothing else and the OS caches things too so I don't think there will be much noticeable benefit but there is still some extra cost.
The main performance increase in the hybrid drives is the use of the 7200RPM speed. Apple use 7200RPM drives in the server model but not the base consumer model. There's not even an option. If it's easy enough to replace, it's not such a big deal but it's added cost on top of the already high starting price.
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Originally Posted by Onhka
That has to be the funniest rational for lower pricing I have ever heard. That is as bad as saying that Apple is largely responsible for putting the world in debt by building great products.
It's like if a really attractive girl decides to parade through a monastery wearing very little clothes. You might say she's doing the guys a favor really but those guys have taken vows. Apple is parading beautiful products in front of people but we have to pay a huge price. In the first case, some would say the girl is behaving irresponsibly.
It's hard to suggest the same of Apple because ultimately it's a business that has to make money and they may as well profit from its best product yet so it can ride out periods of low innovation but it's tough. I'm not only thinking from a consumer point of view either, I like helping Apple to succeed as I respect what they do but they are pushing their products out of my price limits. I know 5 people who won't be upgrading to the iPhone 4 just because of the price increase but otherwise would have.
I'm sure there will be enough people to make up for any losses but Apple's philosophy about being 'for the rest of us' changes to 'for the rest of us on upper class pay grades'. The iPhone costs as much as a desktop computer now (well, not Apple's any more).
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Originally Posted by solipsism
Apparently the economic as a whole isn't as bad off as you think it is or they wouldn't have "so much cash reserves" and increasing sales and profit each quarter.
That generalizes too much. The economy is bad, it's just that it doesn't affect everyone the same. People who are well off will buy Apple products regardless.
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Originally Posted by solipsism
The other vendors aren't being altruistic with offerings by any means.
I would tend to disagree slightly. I'm sure there are some companies who feel they want to improve things for a significant number of people rather than just people who are moderately wealthy. Google being one of them.
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Originally Posted by solipsism
Apple's last quarterly net profit was $1.67B. Based on your estimated and exampled values Apple would lose about 5% of their overall net profit from just the Mac Mini. That doesn't make sense to me.
They don't sell all that many Minis a quarter, they sell 12 million Macs per year and 70-80% are laptops. Their flagship model is the iMac so it'll be 1-2 million Minis per year. They'd make very little loss and gain it back on volume. Even if it was as much as 5% of the profit, 5% hasn't somehow become a high number. That's next to nothing. It's like saying it doesn't make sense to lose 1% of the profit just because it's a loss. It clearly does make sense if you hit a wider market. You might double your market by dropping $100.
Jobs said that products are packages of emphasis, you choose what to highlight in a products and it will sell on that. The Mini moniker was as much about cost as it is was about size and this new development goes completely against that. They could even have dropped the optical drive and made it another 25% smaller as long as the cost stays at the $499-599 entry price. USB-powered drives are dirt cheap if you really need one.