Originally Posted by Logisticaldron
Yeah, of course lowering the price opens the door to new buyers, but neither you nor tipoo have made a case for this being advantageous for Apple. Are you sure they can still get a good profit at that price point? How are you sure that they aren’t selling as many as they can make at $999? If $799 is good then $599 is even better, and $399 is even better than that, and $199 is better still, which makes throwing out a number because you like the way it looks a fruitless way to form an argument for a company lowering their price.
The recent price aggressiveness of Apple in the iPad, and the MacBook Air, clearly indicates that Apple is not simply basing its decisions on profit margins for pricing. While they may not be competing for the bottom price to gain market share, Apple recognize that it must have a significant share to compete for mindshare -- this is critical in the way they incrementally evolved the iPods, and the fine line in pricing the various portable computers that now comprise the bulk of their computer sales.
Thus, Apple might just lower the price of the MacBook (white) -- to attract new consumers into the Apple Ecosystem. The halo effect is much more critical now -- it does not matter if the consumer first becomes familiar with or get entice into the Apple Ecosystem via its iPhone, iPod, iPod touch, iPads or its computers.
My first notebook was the G3 white notebook in 2003. I replaced it only last year because it is getting too slow, but still works otherwise. At the time, I paid $1350 for it, including a memory upgrade.
When they introduced the "MacBook Pros", the price was lowered to $1099 -- faster more RAM and disk storage. When they introduced the unibody aluminum, I thought they will finally discontinue the MacBok (white), but they did not, they just lowered it $1049, and in another year to $999. And not only lowered it, but dramatically upgraded it -- less weight, more RAM and disk storage. The only main difference except for slightly lower RAM and disk storage is the lower graphics capabilities, so that it wil not cannibalize the MacBook Pros, but still be good enough for most average uses, e.g., laypeople, students, etc.
Now, they lowered the MacBook Air 11-inch to almost the same price as the MacBook (white). I doubt many people would buy the MacBook (white) at the same price over the MacBook Air. However, there would retain a very significant market share if the price is lowered further by another $100 or two.
This strategy is not unheard of for Apple. It has always made a "complete" computer to address the needs of price conscious educational market.
The unknown factor is that even the higher end iPad, with built-in Wifi and all those 65,000 Apps (and other significant features thrown in) is near the same price range, if not cheaper, even at $799 price range for a MacBook (white). Throw in another $150, and you have the 3G wireless interconnectvity features and even internet telephony capabilities of the iPad. In fact, even with just Wifi, the available Hot Spots are becoming more ubiquitous.
One main saving grace, for now, of the MacBook (white) is that it is stand-alone computer while the iPad is not (although it is getting there). But, the iPad is in an ecosystem where some families (or in environments, e.g., colleges and universities) have other full-fledged computers to sync to; so that may not be a very insurmountable limitation. Plus, with improving wireless interconnectivity, many of the current limitations of the iPad over that of stand-alone computers will vanish, in a very short time.
I prefer the true unibody form of the iPad (computer and screen in the same body) over the clam shell MacBooks. Apple has already addressed my issue of protecting the very fragile glass screen, not only just another protective cover, but one that is elegant worthy of the product, but also very functional -- on-off, stand, etc.