Anyone frequenting these boards has been bound to express frustation at Apple in some way. I believe the reason is that Apple simply doesn't think the way we do.
IMO, some of the most posted complaints about Apple are processor speed and price. To many of us, the fact that Apple has allowed itself to market machines with a 1GHZ+ deficit that cost $3,500 without a monitor is ABSURD. The fact that the iPod costs $399 is ridiculous. The portables are more competitive, but the desktops and accesories are not based in reality.
All these things make you and I go "Apple, what the F**k are you doing???.....You have the highest profit margin in the industry and a shrinking market share...DUH!!!!" We think the solution is to lower prices in order the gain that market share back.....BUT:
I am starting to think that Apple really doesn't care that much about market share. They have millions of customers that are paying a premium for the products. Granted, they realize that they need to make some overtures such as the retail stores to maintain and slightly increase their share of the market. But, I think Apple realizes that they are making money even in a poor economy. I think they are actually foresaking market share in order to maintain ludicrous porfits. And, when the economy turns around, they know that they wil be raking in $200-300 million a quarter again.
This obviously will not lead to large expansion of their market share. But I think they may be saying "Who the hell wants that?" By maintaining a customer base they already have (one which I believe is less influenced by the economy than the Saturday morning soccer mom's buying Dells) they ensure profitability. They won't go in the toilet when the economy has its next downturn. And, they have the cash and talent to survive comfortably in the niche market. They have a powerful brand name and may indeed be becoming a yuppie luxury brand.
I do think that Apple could start chipping away at market share by lowering prices, increasing advertising and dealing with the MHZ gap more aggressively. But, I don't think that a huge market share is their goal. They may just want to maintain the millions of fanatics that they already have (in addition to the ed market and the pro market) These are people like you and I that are saying things like "maybe I'll drive 130 miles to the nearest Apple store for a day trip" or "when the G5 comes out I'm going to get it and nice big thousand dollar LCD screen because that WILL ROCK!"
You get the point. What do you guys think?
IMO, some of the most posted complaints about Apple are processor speed and price. To many of us, the fact that Apple has allowed itself to market machines with a 1GHZ+ deficit that cost $3,500 without a monitor is ABSURD. The fact that the iPod costs $399 is ridiculous. The portables are more competitive, but the desktops and accesories are not based in reality.
All these things make you and I go "Apple, what the F**k are you doing???.....You have the highest profit margin in the industry and a shrinking market share...DUH!!!!" We think the solution is to lower prices in order the gain that market share back.....BUT:
I am starting to think that Apple really doesn't care that much about market share. They have millions of customers that are paying a premium for the products. Granted, they realize that they need to make some overtures such as the retail stores to maintain and slightly increase their share of the market. But, I think Apple realizes that they are making money even in a poor economy. I think they are actually foresaking market share in order to maintain ludicrous porfits. And, when the economy turns around, they know that they wil be raking in $200-300 million a quarter again.
This obviously will not lead to large expansion of their market share. But I think they may be saying "Who the hell wants that?" By maintaining a customer base they already have (one which I believe is less influenced by the economy than the Saturday morning soccer mom's buying Dells) they ensure profitability. They won't go in the toilet when the economy has its next downturn. And, they have the cash and talent to survive comfortably in the niche market. They have a powerful brand name and may indeed be becoming a yuppie luxury brand.
I do think that Apple could start chipping away at market share by lowering prices, increasing advertising and dealing with the MHZ gap more aggressively. But, I don't think that a huge market share is their goal. They may just want to maintain the millions of fanatics that they already have (in addition to the ed market and the pro market) These are people like you and I that are saying things like "maybe I'll drive 130 miles to the nearest Apple store for a day trip" or "when the G5 comes out I'm going to get it and nice big thousand dollar LCD screen because that WILL ROCK!"
You get the point. What do you guys think?
To save time, assume I know everything.
To save time, assume I know everything.
)
