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Apple pulls educational iMac from online store

post #1 of 34
Thread Starter 
Apple Computer on Wednesday pulled the new $899 educational iMac from its educational online store without giving reason.

Announced last week as a replacement for the company's eMac line of computers, the new all-in-one desktop sports a 17-inch display and 1.83 GHz Intel Core Duo processor.

When contacted by AppleInsider, sales representatives for the Mac maker said the computer's placement on educational store for the past week was "a mistake" and that the model "was only meant to be available to educational institutions."

But several other correspondents who contacted the company were given a variety of other explanations for computer's disappearance. One was told the new model "wasn't selling well" and therefore was removed.

However, informed speculation points to the contrary. At just $899, the educational iMac sells for $400 less than its similar, but more fully equipped retail counterpart.

It's believed that student interest in the new Mac may have been so strong that orders had begun to cut into sales of Apple's higher priced, higher margin iMac retail models.

In its announcement last week, Apple clearly stated that the "17-inch iMac for education" was available "immediately for education customers through the Apple Store for Education."

The $899 iMac remains available for purchase through Apple's online store for educational institutions.
post #2 of 34
It may well be that too many people realized that the cheaper version took care of their needs very well - hurting the normal consumer ranges.

It brings into focus that not everyone wants or needs the fastest, most powerful computer available. For these customers the education version is a great form factor and a great buy. Hopefully Apple will place it back on the site when they have delivered the bulk of their direct education orders - just like they did with the eMac.
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post #3 of 34
Quote:
Originally posted by kenaustus
It may well be that too many people realized that the cheaper version took care of their needs very well - hurting the normal consumer ranges.

It brings into focus that not everyone wants or needs the fastest, most powerful computer available. For these customers the education version is a great form factor and a great buy. Hopefully Apple will place it back on the site when they have delivered the bulk of their direct education orders - just like they did with the eMac.

Cost is the most important factor to the masses.
post #4 of 34
My guess is that Apple started to get bulk institutional orders they could barely fill--so they had to stop offering to individuals rather than turn down or delay the big orders. Which wouldn't have to mean the model was outselling other iMacs, merely that it was selling enough to interfere with the big orders.

After all, many of those individuals will "settle" for some other Mac. But an institution might not.
post #5 of 34
Quote:
Originally posted by nagromme
My guess is that Apple started to get bulk institutional orders they could barely fill--so they had to stop offering to individuals rather than turn down or delay the big orders. Which wouldn't have to mean the model was outselling other iMacs, merely that it was selling enough to interfere with the big orders.

After all, many of those individuals will "settle" for some other Mac. But an institution might not.

Methinks this sounds likely...
post #6 of 34
I'm grooving on the use of the phrase "informed speculation" in this story.
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post #7 of 34
In the U.K. where Apple also started offering the lower spec educational config. the product is still availible to individuals. Obviously, the customer base is a lot smaller here. This leads me to suspect that as previously suggested the edu. config. was cutting into the sales of the other ones.
post #8 of 34
Quote:
Originally posted by solsun
Cost is the most important factor to the masses.


Exactly. Why else would anyone really want to buy a Dell?

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post #9 of 34
Yes I would imagine Apple would want to sell in large volume to institutions first. After those large orders are filled then sell to individuals.
post #10 of 34
There's also the whispered quality control issues. I'm guessing the model will be back online shortly, say a week or two.
post #11 of 34
Quote:
Originally posted by DCQ
There's also the whispered quality control issues. I'm guessing the model will be back online shortly, say a week or two.

That was my reaction to the headline too. But if the UK Edu Store story is right, it sounds more likely that Apple got a huge response from institutions in America and is suspending sales to students until these are filled. Easy money, once you've got them shipped before the big buyers switch to something else!

I wonder though if anyone in Apple will learn the moral of this story:

"A lower spec Mac with a tasty price tag will sell like hot cakes."

Somehow, I think any such urge will be Steved. The same old story.
post #12 of 34
Could it be there is pent up demand for sub $1000 macs? Not minis without a monitor and keyboard but a complete mac system for less than 1k.
post #13 of 34
Now if we could only get a black sub $1000 macbook...
I'd get that
post #14 of 34
"Cost is the most important factor to the masses." (Solsun)

Cost is critical for many people. It isn't easy to come up with $1,000 for a new computer if you have average income and average expenses - especially if you have kids!

In looking at the education iMac, however, my thinking is that it has more than enough horsepower for an average user. Your "average" consumer will not be into the apps that require quad processors - they'll be into email, surfing the internet, iPhoto (maybe Photoshop Elements) etc. In this environment the lower spec iMac would thrive. (It already kicks my 1.5 PB to there & back and I use the PB as my business computer - 18 windows open on it right now.)
Ken
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post #15 of 34
Quote:
Originally posted by backtomac
Could it be there is pent up demand for sub $1000 macs? Not minis without a monitor and keyboard but a complete mac system for less than 1k.

:word: that is what i am waiting for
post #16 of 34
if they didn't want college students to buy it, and they see there's demand, why don't they just sell the model to students for $999.

Their margins would be the same as those with the regular iMac, and regular people (non-students) wouldn't see the slightly inferior eiMac (and wouldn't need to, since they aren't penny crunching college students)
post #17 of 34
it is gone for the Australian store as well
post #18 of 34
Quote:
Originally posted by TenoBell
Yes I would imagine Apple would want to sell in large volume to institutions first. After those large orders are filled then sell to individuals.

I hope that is true.

As with the original eMac, I hope Apple expands its consumer product lines and realizes that it would do well to increase (or intitiate) a sub $1000 AIO market that is obviously there. Demand is like a little voice in the CEO's ear that says, "Make more of these." And if it means a 1% or 2% drop in margin, tough, that's what the big boys do. It's not like Apple is doing alot with its cash reserves now.

What they would lose in margin they would make up in quantity if Apple truly is going to increase market share like Jobs claimed to be his goal.
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post #19 of 34
In Canada at no point in time since it's release was this imac available to education customers, just insitutions.

My question is do the people who ordered already still get their machines?
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post #20 of 34
The cheap iMac isn't available to individuals in the UK now either. Was it ever? I don't keep track of the edu store since it's cheaper to buy it through the business store and claim the VAT back for me. I couldn't do that if I bought it from the edu store.

Base model is the same 17inch model priced at £703+VAT as compared to £748+VAT for non-educational buyers.
post #21 of 34
Quote:
Originally posted by ecking
My question is do the people who ordered already still get their machines?

Yes.
post #22 of 34
Quote:
Originally posted by backtomac
Could it be there is pent up demand for sub $1000 macs? Not minis without a monitor and keyboard but a complete mac system for less than 1k.

Although you can add a monitor and keyboard to a mini and still end up comfortably below $1k. This is a great deal though. Or was.
post #23 of 34
Quote:
Originally posted by minderbinder
Although you can add a monitor and keyboard to a mini and still end up comfortably below $1k. This is a great deal though. Or was.

That's true but it's not an Apple display. If some one is shopping for a system and don't have an old display and keyboard to reuse they can't buy a mini 'system' from Apple for less than 1k. The ACDs start at $799. So they have to go to new egg or some other vendor to get the display. I wonder if this deters sales. If the edu iMac was truely pulled from the Apple store because ti was eating into 'regular' iMac sales maybe Apple should sell less expensive displays at the Apple store so that a buyer can configure a mini system for less than 1k. The displays don't even have to be an Apple brand.
post #24 of 34
It distresses me to say it, but I doubt large institutional sales were the reason the ed iMac was pulled. No doubt there have been institutional sales, but @ $899 this is a very high price for educational institutions.

I lean toward the view that this ed iMac was seen as a threat to the other iMac sales and profit, so was pulled in order to protect profits.

Nothing wrong with that, except it gives Apple another PR problem to go along with all the others.\
just waiting to be included in one of Apple's target markets.
Don't get me wrong, I like the flat panel iMac, actually own an iMac, and I like the Mac mini, but...........
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just waiting to be included in one of Apple's target markets.
Don't get me wrong, I like the flat panel iMac, actually own an iMac, and I like the Mac mini, but...........
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post #25 of 34
Quote:
Originally posted by nagromme
My guess is that Apple started to get bulk institutional orders they could barely fill--so they had to stop offering to individuals rather than turn down or delay the big orders. Which wouldn't have to mean the model was outselling other iMacs, merely that it was selling enough to interfere with the big orders.

After all, many of those individuals will "settle" for some other Mac. But an institution might not.


Hey!

What the hell are you doing posting a well reasoned and realistic argument for this? Man, you need to help feed the conspiracy theories! Seriously!

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post #26 of 34
The $899 iMac is not available at the Apple Educational Online Store either.

- Dave Marsh
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post #27 of 34
Quote:
Originally posted by Dave Marsh
The $899 iMac is not available at the Apple Educational Online Store either.

Isn't that precisely what the topic says?
post #28 of 34
Quote:
It distresses me to say it, but I doubt large institutional sales were the reason the ed iMac was pulled. No doubt there have been institutional sales, but @ $899 this is a very high price for educational institutions.

They are not paying $899. The institutions are likely buying large orders which would lower the price. And Apple is bidding against Dell which would lower the price.
post #29 of 34
I was probably a few hours from ordering the $899 iMac for my elementary school teacher wife and seventh grade daughter when I discovered by 9am on the first day of the new policy that a change had been made.

We simply don't need a DVD Burner (which our PC clone has and we can .mac over to if needed) and we don't need a big hard drive (the unit is really for educational needs) especially with external drives available as last ditch lifeboats.

We do very much need the $899 price so that we can also purchase appleCare and .Mac and Student Office and still keep the price within reach.

I believe in the Apple product but there is a limit to what I can spend. I can be unhappy but not as poor with another wintel clone.

In the words of Oscar's Billy Bigelow

"Reckon my sins are good big sins,
And the punishment won't be small;
So take me before the highest throne
And let me be judged by the highest Judge of all"

The iMac is heaven, if I have to wait until I can afford it I may be singing to a different judge....

Respectfully

Scott

PS - I have to admit that I was one of those told by the Apple staff that the edu iMac was pulled because it wasn't selling well, which sadly had the same credibility ring as of one of this season's early bad campaign ads.
post #30 of 34
it was only on the store fot less than 1 week how could you judge sales on a product that had on marketing and was on sale only for a week
post #31 of 34
Quote:
Originally posted by furious_
it was only on the store fot less than 1 week how could you judge sales on a product that had on marketing and was on sale only for a week

Apple anticipates demand for lets say 50k units per month -- takes orders for 50k in first week between instetutions and indeviduals...so they kill indevidual ordering but leave instatutionals open because instetutions place orders with lead time: that is if a lab were to be built in mid-july, the computers would have likly been ordered in June with a delivery date in mid-july.

Moral of the story: they ramp up production, fill backorders then put it back up --- I say it will be back by Aug 1.
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post #32 of 34
[QUOTE]Originally posted by backtomac
That's true but it's not an Apple display. If some one is shopping for a system and don't have an old display and keyboard to reuse they can't buy a mini 'system' from Apple for less than 1k. The ACDs start at $799. So they have to go to new egg or some other vendor to get the display. I wonder if this deters sales. If the edu iMac was truely pulled from the Apple store because ti was eating into 'regular' iMac sales maybe Apple should sell less expensive displays at the Apple store so that a buyer can configure a mini system for less than 1k. The displays don't even have to be an Apple brand.



This is the thing that baffles me to no end in my city. There are at least 6 major Apple Resellers at malls which are patronised decently by the middle-to-higher incomes.

There are absolutely NO deals where you can get a Mac Mini and with a non-Apple keyboard, mouse, and a non-Apple 15" 1024x768 LCD.

Unless for some reason Apple Asia is not allowing resellers to do this.

People walking in, look at this small box, and just don't really know WTF it is. Sell it as a decent package (and there are various credit options via participating major banks) as a complete, excellent computer for the cost, and at least the Mac Mini becomes 10x more attractive...! Mention that it also run Windows, or better, demonstrate that it also runs Windows, and that should increase the attractiveness of the Mac Mini even further. The Mac Mini G4 was good overall. The core Solo Mac Mini is still good. And it runs Windows.

Sell it as a friggin' full-computer package so that people GET what it is about...! For chrissakes. Discounts on the LCD panels when bought as an entire package, for chrissakes.
post #33 of 34
in Australia apple could scrape the Mini all to geather and replace it with the edu iMac. because the Mini was 949$ for the solo and 1249$ for the duo the edu iMac was only 1549$ and was such a better product.

when dell sell pent D's, Keyborad and 19' LCD monitor for 599$ the mini looks shockingly over priced. but so does the iMac.
post #34 of 34
Quote:
Originally posted by kenaustus
"Cost is the most important factor to the masses." (Solsun)

Cost is critical for many people. It isn't easy to come up with $1,000 for a new computer if you have average income and average expenses - especially if you have kids!

In looking at the education iMac, however, my thinking is that it has more than enough horsepower for an average user. Your "average" consumer will not be into the apps that require quad processors - they'll be into email, surfing the internet, iPhoto (maybe Photoshop Elements) etc. In this environment the lower spec iMac would thrive. (It already kicks my 1.5 PB to there & back and I use the PB as my business computer - 18 windows open on it right now.)

there are "average" consumer that want betten video then gma 950 and thay also want head less with that too.
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