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Apple to offer employees $500 off a new Mac, $250 off iPads - report [u]

post #1 of 43
Thread Starter 
Apple Chief Executive Tim Cook reportedly informed employees this week that later this year they will be able to buy an iPad with a $250 discount, while Macs will be available for $500 off.

Update: Tipsters have revealed to AppleInsider that the discounts will stack on top of the preexisting 25 percent discount.

Starting in June, the discounts will be available to employees who have worked more than 90 days at Apple, according to The Register. Employees will be able to obtain the $750 in discounts once every three years.

The announcement was made by Cook in a "town hall" meeting put on by Apple with its employees. It came a day after Apple announced a record quarter, in which it earned $13 billion.

For some products and configurations, the new discounts go well beyond what Apple has traditionally offered. Employees can currently receive a 25 percent discount on a complete Mac system one time per year.

But $500 off would actually be a reduced discount for some of Apple's high-end products when compared to the current 25 percent reduction. For example, a maxed-out 17-inch MacBook Pro, with 8GB of RAM and a 512GB solid-state drive, can cost over $4,000 at retail, and a 25 percent discount would amount to $1,000 in savings, or twice that of the new promotion.




But $500 off would be a larger discount in most cases. For example, an employee looking to buy the entry-level 11.6-inch MacBook Air would pay just $500 for the usually $999 notebook, while a 25 percent discount would only reduce the price to about $750.

The new perk also applies to all Apple employees, and not just those who work at the company's corporate headquarters in Cupertino, Calif. That means more than 60,000 workers, including those at Apple's hundreds of retail stores, will be eligible for the promotion.
post #2 of 43
I think this is a smart move. Apple employees already get a 25% discount once a year, so when you put $500 with that you get a good incentive to buy a machine. I'm sure there are a few employees that don't have Macs or iPads and this will help them to be better evangelists, especially in the retail space where the employees would be the most likely ones to not own a current product.

FYI, I've seen some posts by Apple employees that indicate that the two discounts can be used together, which contradicts the article somewhat.
post #3 of 43
Quote:
Originally Posted by nunyabinez View Post

I think this is a smart move. Apple employees already get a 25% discount once a year, so when you put $500 with that you get a good incentive to buy a machine. I'm sure there are a few employees that don't have Macs or iPads and this will help them to be better evangelists, especially in the retail space where the employees would be the most likely ones to not own a current product.

FYI, I've seen some posts by Apple employees that indicate that the two discounts can be used together, which contradicts the article somewhat.

Yes to this. However, it seems to me that Apple ought to really WANT all their employees to have iPads. Point being, they could get first-hand feedback (input from customers is SECOND-hand) on how a relatively new device performs in the real world, and also on what folks WANT it to do that it does not. With its astounding profits, and with a new iPad model coming around the bend anyway, Apple should GIVE each employee an iPad, while also offering discounts on its other products. Or if not this, than at least a much larger discount keyed to how long they've worked for Apple.
post #4 of 43
Quote:
Originally Posted by AppleInsider View Post

But $500 off would actually be a reduced discount for some of Apple's high-end products [...]

Quote:
Originally Posted by AppleInsider View Post

But $500 off would be a larger discount in most cases.

it's this kind of riveting analysis i've come to expect from appleinsider.com
post #5 of 43
You mean the chairman of HP has to pay full price for his MacBook Air, but the Apple Store staff who sold him the machine only has to pay $799?

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post #6 of 43
Excellent deal for Apple employees, and they certainly deserve it. Funny thing is that Apple will still likely turn a profit on those sales, albeit much smaller obviously.
post #7 of 43
Quote:
Originally Posted by Suddenly Newton View Post

You mean the chairman of HP has to pay full price for his MacBook Air, but the Apple Store staff who sold him the machine only has to pay $799?

I'm not getting your "wow" reaction to this. Why would a competitor's board member get a special discount just by walking into an Apple store and asking to buy an Air? Why would it be unbelievable that an Apple employee can buy an Apple product that is subsidized by their own employer? Even if HP had some type of corporate volume contract with Apple where it could buy discounted items, I still think an Apple employee discount could be higher.
post #8 of 43
Quote:
Originally Posted by techguy911 View Post

... I still think an Apple employee discount could be higher.

Why? Because they don't get paid?
post #9 of 43
The 25% off the Mac Pro was a better deal.
post #10 of 43
Quote:
Originally Posted by Freshmaker View Post

Excellent deal for Apple employees, and they certainly deserve it. Funny thing is that Apple will still likely turn a profit on those sales, albeit much smaller obviously.

Apple's gross margin this past quarter was a whopping 48%.
I'm sure it isn't that high on most Macs but still probably over 25% on some.
post #11 of 43
Quote:
Originally Posted by Suddenly Newton View Post

You mean the chairman of HP has to pay full price for his MacBook Air, but the Apple Store staff who sold him the machine only has to pay $799?

The chairman of HP is is worth $850 million. I think he can afford it.
post #12 of 43
[QUOTE=AppleInsider;2032237]Apple Chief Executive Tim Cook reportedly informed employees this week that later this year they will be able to buy an iPad with a $250 discount, while Macs will be available for $500 off.

Starting in June, the discounts will be available to employees who have worked more than 90 days at Apple, according to The Register. Employees will be able to obtain the $750 in discounts once every three years.

The announcement was made by Cook in a "town hall" meeting put on by Apple with its employees. It came a day after Apple announced a record quarter, in which it earned $13 billion.

For some products and configurations, the new discounts go well beyond what Apple has traditionally offered. Employees can currently receive a 25 percent discount on a complete Mac system one time per year.

But $500 off would actually be a reduced discount for some of Apple's high-end products when compared to the current 25 percent reduction. For example, a maxed-out 17-inch MacBook Pro, with 8GB of RAM and a 512GB solid-state drive, can cost over $4,000 at retail, and a 25 percent discount would amount to $1,000 in savings, or twice that of the new promotion.





This comment from an Apple employee was overheard " Boy am I glad I waited, Dell and HP both offered me $1000.00 if I would take one of their machines for free. I did turn them down. "
post #13 of 43
This is actually going to save Apple money in theory. Previously they could use their 25% discount once a year which means if they maxed out a computer every year they would save 1,000 a year. Now it's saying they can only use $750 every 3 years. That's an extreme case of course but it most likely will save them some money any way you work it.
post #14 of 43
Any Apple employees want to be my friend?

I predict that you'll see a lot of these end up on eBay.
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post #15 of 43
Quote:
Originally Posted by mdriftmeyer View Post

The 25% off the Mac Pro was a better deal.

I suspect 95% of employees (if not 99%) are happier with this flat $500 deal. On the other hand, it probably would have been better if they had said "$500 or 25% of the retail price, whichever is greater" to recognize that SOME people have a need for a Mac Pro (I assume, since it's no one I know personally).
post #16 of 43
Quote:
Originally Posted by AppleInsider View Post

For some products and configurations, the new discounts go well beyond what Apple has traditionally offered. Employees can currently receive a 25 percent discount on a complete Mac system one time per year.

But $500 off would actually be a reduced discount for some of Apple's high-end products when compared to the current 25 percent reduction.

The article is looking at this incorrectly. The new incentive is in addition to the current offering. Employees will still have access to their annual 25% reduction but will also get this additional, every 3 year discount. Employees come out ahead here regardless of buying high-end or low-end products.
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post #17 of 43
Quote:
Originally Posted by techguy911 View Post

... I still think an Apple employee discount could be higher.

As with any other business - comparisons should logically be drawn against what competitors are offering. Having a brother working for HP, and having worked for both Intel and Dell - I can say that the competition's offerings for discounts to employees are a sick joke. At Dell, I could go through some red tape, sign a document that threatened my job if I sold the computer/Jukebox/laptop/display/printer or anyting else; instead of using it for personal use. Then, I was offered a whopping 15% off the full price. Generally speaking, the price I was offered (after the red tape and threats) was hundreds of dollars MORE than what the public was offered at any given time.

I invite you to look at the Dell Website, and you will see two prices. One is the "List Price" (this is the one that gets me the 15% discount) and the other is the "Today's Sale Price" which is generally 25-50% less than the List price.

So, compared against the competition - Apple is a stand-out success. This is, in my book, a very SMART move by Apple. This will boost morale, and encourage their employees to become active Apple users, not only at work, but at home and in their personal lives too.

I see no downside to this - for anyone.
post #18 of 43
Every 3 years seems like a long time between upgrades. At least for me it is.

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post #19 of 43
Stockholders next,

pretty please.
post #20 of 43
Quote:
Originally Posted by SolipsismX View Post

Every 3 years seems like a long time between upgrades. At least for me it is.

I agree. I want Apple employees to be "eating their own dogfood" so to speak. That way they are more likely to encounter the same problems that we their customers do, which means bugs would get fixed faster. As such, it should not be 3 years between offers but more like 12-18 months. Further, I think the discounts should be greater than this. After all, Apple is swimming in money and it should not regard its employees as a revenue source. It should want them all to own current Apple products and use them and be testers.

IDEA:
Perhaps Apple could offer a greater deal where an employee gets $1K annually towards Apple products WITH THE PROVISO that they must be able to present the item on 24 hours notice to prove they've not sold it off to someone. Encourage them to use it and test the hardware and software in everyday usage. They'd also have to submit at least one bug report or feature request every quarter. THIS is what I'd expect from an industry leader who is doing so amazingly well.
post #21 of 43

L
ooks like quite an improvement from Taco Towers



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post #22 of 43
Just imagine Apple doing that with everybody. Because they have so huge commercial margins and a huge pile of cash in the bank. They would take the market by storm and increase worldwide market share of the Mac from 5 to 90% in just three years!
post #23 of 43
Quote:
Originally Posted by applecider View Post

Stockholders next,

pretty please.

What I had hoped for, in this order:

1) Announcement of a liberal employee stock purchase plan -- say deduct up to 10% of your salary and purchase stock at 75% of share value.

2) Announcement of a 10::1 AAPL stock split


Seriously, when I worked for IBM, they had such an Employee Stock Purchase plan -- it incented and rewarded employees for their contributions to the success of the company...

Many employees (including myself) used this plan to accumulate enough money to place a down payment on their first home.


I think the 10::1 stock split will shake up the ownership of AAPL stock -- put more stock in the hands of small investors to reduce the effect of manipulation by day-traders, leveraged funds, etc.
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post #24 of 43
Apple to offer employees $500 off a new Mac, $250 off iPads - report

And they'll probably still make a profit on each sale. Basically, they are removing the Apple Tax for their staff. Which is the right thing to do.
post #25 of 43
Quote:
Originally Posted by zunx View Post

Just imagine Apple doing that with everybody. Because they have so huge commercial margins and a huge pile of cash in the bank. They would take the market by storm and increase worldwide market share of the Mac from 5 to 90% in just three years!

I won't go so far as to say "everybody". But when I learned they now have $100Billion in cash, it occurred to me they should spend a tiny fraction of that offering iPads to schools for $250 each. That would be less than cost (I think the latest iSuppli estimate is $312 per iPad) so they would be "spending". More importantly, they'd be putting serious quantities of iPads in education to support their iBooks 2 initiative. It would pay off big time in market share at a tiny hit to their cash reserves, and also foster tons of goodwill. Why not?
post #26 of 43
Quote:
Originally Posted by Suddenly Newton View Post

You mean the chairman of HP has to pay full price for his MacBook Air, but the Apple Store staff who sold him the machine only has to pay $799?

Obviously, he's not an Apple employee; just a customer.
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post #27 of 43
Quote:
Originally Posted by Mister Snitch View Post

Yes to this. However, it seems to me that Apple ought to really WANT all their employees to have iPads. Point being, they could get first-hand feedback (input from customers is SECOND-hand) on how a relatively new device performs in the real world, and also on what folks WANT it to do that it does not. With its astounding profits, and with a new iPad model coming around the bend anyway, Apple should GIVE each employee an iPad, while also offering discounts on its other products. Or if not this, than at least a much larger discount keyed to how long they've worked for Apple.

post #28 of 43
Quote:
Originally Posted by Dick Applebaum View Post

What I had hoped for, in this order:

1) Announcement of a liberal employee stock purchase plan -- say deduct up to 10% of your salary and purchase stock at 75% of share value.

Apple has had an ESPP for years, at least since the Nineties. Pretty much all publicly-traded Silicon Valley firms have one.

It's repeatedly mentioned in Apple's 10-K filings, year in, year out.

Quote:
Originally Posted by Dick Applebaum View Post

I think the 10::1 stock split will shake up the ownership of AAPL stock -- put more stock in the hands of small investors to reduce the effect of manipulation by day-traders, leveraged funds, etc.

Apple has never been a popular stock for individual investors even when shares were much cheaper. Right now, 70% of outstanding shares are held by institutional investors.

Per the proxy statement filed on January 9, there were 28,500 shareholders of record on December 27, 2011. That's not a lot of individual investors. That's about one out of every ten thousand Americans directly owning AAPL.

However, a lower stock price would increase volatility and trading volume. Most of the trade volume is from automated computer programs, not retail investors. Apple's average volume is almost 13 million shares.
post #29 of 43
Quote:
Originally Posted by AppleInsider View Post

Apple Chief Executive Tim Cook reportedly informed employees this week that later this year they will be able to buy an iPad with a $250 discount, while Macs will be available for $500 off.



Good for Apple. This program makes sense from every angle.
post #30 of 43
They used to give members of the developer program a discount on machines. I saved quite a bit on Mac Pros back in the day.
post #31 of 43
Quote:
Originally Posted by Dick Applebaum View Post

What I had hoped for, in this order:

1) Announcement of a liberal employee stock purchase plan -- say deduct up to 10% of your salary and purchase stock at 75% of share value.

according to my sources that has been in place since before retail

Oh and this $250/500 is on top of the regular discount, not in place of, says my source

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post #32 of 43
Quote:
Originally Posted by htoelle View Post


This comment from an Apple employee was overheard " Boy am I glad I waited, Dell and HP both offered me $1000.00 if I would take one of their machines for free. I did turn them down. "

you say this individual claims to have turned down a gift of $1,000 and some "machine" that they could keep, sell, or give away, for "free", i.e., no strings attached, no cost to them, no obligation, that's what "for free" means

either they're an idiot or someone is lying
post #33 of 43
Employee Deal?
The timing of this sounds like Apple is clearing out old inventory. Here, buy an iPad 2 at a discount. Oh, now the iPad3 is available.
post #34 of 43
Quote:
Originally Posted by Marktrek View Post

Employee Deal?
The timing of this sounds like Apple is clearing out old inventory. Here, buy an iPad 2 at a discount. Oh, now the iPad3 is available.

Except this additional incentive doesn't go into effect until later this year, June I think. More than likely the delay is to keep employees from exercising this benefit and adding to the supply constraint that comes with product launches.
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post #35 of 43
Employees should be encouraged to use the product. Purchase plans need to be consistent and fair.
At the old CompUSA the policy established at hiring was one computer system at employee price per year. A desktop and a laptop could be purchased in one year if you skip the following year. And buying for a gift or present was fine. So a top salesman buys a full set up for his cousin. His last personal purchase was almost two years earlier. Oh, it is not for personal use? You're fired. Not a simple, "Sorry, doesn't meet policy, or he will have to pay regular price." He got in the General Manager's face, but made no threats, no contact, no profanity or raised voices. They called the police on him.
It did not bother me one bit when they went out of business.
post #36 of 43
Quote:
Originally Posted by cvaldes1831 View Post

Apple has had an ESPP for years, at least since the Nineties. Pretty much all publicly-traded Silicon Valley firms have one.

It's repeatedly mentioned in Apple's 10-K filings, year in, year out.

Ahh... The last time I paid any attention to Apple benes was in 1989... they virtually had no benes except child care...
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post #37 of 43
Quote:
Originally Posted by Marktrek View Post

Employee Deal?
The timing of this sounds like Apple is clearing out old inventory. Here, buy an iPad 2 at a discount. Oh, now the iPad3 is available.

No, the policy is open-ended and can be used once every three years.

Thus an employee could get $500 savings on a Mac purchased six months from now and $250 on an iPad (whichever model is on the market) two years from today.
post #38 of 43
Quote:
Originally Posted by malax View Post

I suspect 95% of employees (if not 99%) are happier with this flat $500 deal. On the other hand, it probably would have been better if they had said "$500 or 25% of the retail price, whichever is greater" to recognize that SOME people have a need for a Mac Pro (I assume, since it's no one I know personally).

As a former employee, I'd suspect not.

25% off $2k is $500. Any system total above $500 is not a better deal.

Buy a new iMac or mac mini with a new Display and you've gone past $500, except the $500 cannot go towards the mini so I wonder if they'll allow a combo purchase and $500 deducted. Most likely. It appears the $2k is the equilibrium point where any system above it shows the 25% off to be a better deal.

If I want the iMac 27" 1TB with 16 GB of RAM I'm at $2699 before tax. Hence, the 25% is a better deal.
post #39 of 43
Quote:
Originally Posted by zunx View Post

Just imagine Apple doing that with everybody. Because they have so huge commercial margins and a huge pile of cash in the bank. They would take the market by storm and increase worldwide market share of the Mac from 5 to 90% in just three years!

And then what? One day, they revert their prices back to normal, which would be a PR and perceived-value disaster? Or would they forever keep them that low, bleeding away all their money and margins? Both situations would be untenable.
post #40 of 43
Quote:
Originally Posted by mdriftmeyer View Post

As a former employee, I'd suspect not.

25% off $2k is $500. Any system total above $500 is not a better deal.

Buy a new iMac or mac mini with a new Display and you've gone past $500, except the $500 cannot go towards the mini so I wonder if they'll allow a combo purchase and $500 deducted. Most likely. It appears the $2k is the equilibrium point where any system above it shows the 25% off to be a better deal.

If I want the iMac 27" 1TB with 16 GB of RAM I'm at $2699 before tax. Hence, the 25% is a better deal.

Once again, this appears to be IN ADDITION TO the normal discount.
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