Can Apple sell a $1999 iMac?

Posted:
in Future Apple Hardware edited January 2014
Cuz that's as low as the price can go for some of the models predicted Come on, do you honestly expect to get a 15" LCD, 1 GHz, SuperDrive iMac for less than $2000? All of these things cost, and to incorporate them into a consumer machine at this time would put the models firmly into the pro price category.



I agree that it's time for Gigahertz Macs, but the two other droolworthy traits aforementioned are just too expensive to put into a consumer machine.
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Comments

  • Reply 1 of 34
    matsumatsu Posts: 6,558member
    On the PC side you can get a decent home machine with an LCD for $999US. Superdrive costs too much but a 999 DVD or CDrw LCD iMac should already exist, as should an 1199 combo model.



    I expect a Ghz (or thereabouts PPC) and a DVD or CDrw drive with a 15"LCD for $999. I expect a CD model for 899 and a combo model for 1199. Anything more than that is a rip-off, as are all the current iMacs.
  • Reply 2 of 34
    daverdaver Posts: 496member
    Agreed, Matsu. Anything above $1299 would be a complete ripoff, assuming no Superdrive.



    Would I pay $1999 for an iMac? No freakin' way! As a Canadian student, the most I could pay for an iMac would be $1499, which works out to about $2299 here.
  • Reply 3 of 34
    leonisleonis Posts: 3,427member
    We Canadian also need to pray that by the time Apple introduces new products the exchange from Canadian dollar to US dollar to rise a bit....if it keeps dropping the Canadian retail price will be insanely expensive



    [ 12-01-2001: Message edited by: Leonis ]</p>
  • Reply 4 of 34
    murbotmurbot Posts: 5,261member
    I agree. I just can't see an iMac going for more than $1500 US.



    I don't think the pricing range is going to change a whole lot after going LCD really. Might be a CD on the low end for $899, up to $1499 max. I think they'd have a damn hard time moving anything more expensive with a G3 processor, SuperDrive or not.



    Hey, 4 Canuck posts in a row here boys. Cool.



    [edit - it was 3 posts, but Leonis snuck in there...]



    [ 12-01-2001: Message edited by: murbot ]</p>
  • Reply 5 of 34
    emaneman Posts: 7,204member
    There's no way Apple could sell a $1999 iMac. I don't how anyone would spend that much on an iMac unless it could be upgraded and everything, but then that would go into the pro category and that isn't what the iMac is.
  • Reply 6 of 34
    They tried; it was called the cube.
  • Reply 7 of 34
    The point may be mute anyways because the Superdrive will not be in a G3, 1 GHz or not. It needs the G4 unique altivec engine. However, perhaps if this supposed 1 GHz G3 is the IBM Sahara which is supposed to have an altivec like functionality to it? That clouds the issue a bit.



    I believe a $1999 iMac might sell, if it has enough punch.



    1 GHz G3 or 6xx MHz G4

    256 MB RAM standard

    80 GB HD

    15" LCD (boy, a 1280x1024 res. would be nice, especially if you are paying $2k)

    all the standard stuff

    USB, Firewire, gigabit ethernet

    Airport card included would be nice

    32 MB graphics AGP 4x



    Perhaps worth $2k?



    -'pert
  • Reply 8 of 34
    matsumatsu Posts: 6,558member
    Not only is the issue whether Apple could sell a 1999 iMac or not, which it couldn't, but whether people have a right to expect the features we're after at the prices we want. And we do.



    An LCD is NOT too expensive, a bare 15" XGA panel costs under $180, that leaves Apple with $620US to spend, at cost prices, on the rest of the computer (which can buy a hell of a lot even at retail prices).



    Total manufacturing cost; $800US. To be sold at; $999 retail for a profit margin of 20-25%. Still better than just about anyone in the computer industry.



    When one looks at the cost of components, one can only conclude two things: (1) the profit that Apple makes, even on edu discounted iMacs, is ridiculous, or (2)the cost of producing the all-in-one proprietary form factor continues to negate component savings for what should otherwise be *very* cheap components.



    The more I think about it the more I think that an ADC connected micro-tower (with only one AGP and one PCI slot, on a micro-ATX MB) is a more cost effective solution than an expensively miniaturized all-in-one form factor.
  • Reply 9 of 34
    torifiletorifile Posts: 4,024member
    [quote]Originally posted by Matsu:

    <strong>Not only is the issue whether Apple could sell a 1999 iMac or not, which it couldn't, but whether people have a right to expect the features we're after at the prices we want. And we do.



    An LCD is NOT too expensive, a bare 15" XGA panel costs under $180, that leaves Apple with $620US to spend, at cost prices, on the rest of the computer (which can buy a hell of a lot even at retail prices).



    Total manufacturing cost; $800US. To be sold at; $999 retail for a profit margin of 20-25%. Still better than just about anyone in the computer industry.



    When one looks at the cost of components, one can only conclude two things: (1) the profit that Apple makes, even on edu discounted iMacs, is ridiculous, or (2)the cost of producing the all-in-one proprietary form factor continues to negate component savings for what should otherwise be *very* cheap components.



    The more I think about it the more I think that an ADC connected micro-tower (with only one AGP and one PCI slot, on a micro-ATX MB) is a more cost effective solution than an expensively miniaturized all-in-one form factor.</strong><hr></blockquote>



    Matsu,

    You're forgetting the cost of putting the things together, packaging, storing and delivering. Not to mention all the other sundry expenses associated with manufacturing costs. If each iMac costs Apple $800 in parts, you can be sure they're not making $200 in pure profit. I don't know what they would actually make, but it ain't that <img src="graemlins/hmmm.gif" border="0" alt="[Hmmm]" />
  • Reply 10 of 34
    [quote]do you honestly expect to get a 15" LCD, 1 GHz, SuperDrive iMac for less than $2000? <hr></blockquote>



    For about $1200, they could offer an LCD iMac with AT LEAST a 15" display. I think 16 or 17 inches is called for, considering that many laptops have 15" displays.



    I don't expect a superdrive iMac, but the rest of thsi stuff isn't too outrageous.
  • Reply 11 of 34
    matsumatsu Posts: 6,558member
    Take it out of the difference in buying volume cost price parts, you can still build a hell of a lot of computer for 800. I didn't make myself clear, I meant parts and manufacture. Apple has all those costs anyway, and they are supposedly better managed than any other maker out there. Shipping, promotion, and storage, are all costs that wouldn't be any higher than they are with the current machine. An LCD iMac is possible at 999; moreover, it's possible at a healthy profit too.
  • Reply 12 of 34
    vinney57vinney57 Posts: 1,162member
    Please define 'rip off'
  • Reply 13 of 34
    [quote]Originally posted by Matsu:

    <strong>Take it out of the difference in buying volume cost price parts, you can still build a hell of a lot of computer for 800. I didn't make myself clear, I meant parts and manufacture. Apple has all those costs anyway, and they are supposedly better managed than any other maker out there. Shipping, promotion, and storage, are all costs that wouldn't be any higher than they are with the current machine. An LCD iMac is possible at 999; moreover, it's possible at a healthy profit too.</strong><hr></blockquote>



    I whole heartedly agree. And I think that there will be a 1499 iMac with the LCD and SuperDrive. Why?? Because if you add the current costs of everything (and you do realize that Apple probably buys those drives at about 500 a piece. Maybe 600) it is about 1100 -1200. So selling them at 1499 is still about the 20 - 25% profit margin. So I think it is reasonably possible to see a SuperDrive Equipped iMac here soon.
  • Reply 14 of 34
    applenutapplenut Posts: 5,768member
    [quote]Originally posted by Rupert:

    <strong>The point may be mute anyways because the Superdrive will not be in a G3, 1 GHz or not. It needs the G4 unique altivec engine. However, perhaps if this supposed 1 GHz G3 is the IBM Sahara which is supposed to have an altivec like functionality to it? That clouds the issue a bit.



    I believe a $1999 iMac might sell, if it has enough punch.



    1 GHz G3 or 6xx MHz G4

    256 MB RAM standard

    80 GB HD

    15" LCD (boy, a 1280x1024 res. would be nice, especially if you are paying $2k)

    all the standard stuff

    USB, Firewire, gigabit ethernet

    Airport card included would be nice

    32 MB graphics AGP 4x



    Perhaps worth $2k?



    -'pert</strong><hr></blockquote>



    nothing about the superdrive requires a G4. and a 1Ghz G3 should encode MPEG 2 just fine, hell a 700 Mhz G3 could probably do it decently. Apple misleads people in their marketing. iDVD encodes quickly due to the bitrate and less to do with altivec.



    [quote]Matsu,

    You're forgetting the cost of putting the things together, packaging, storing and delivering. Not to mention all the other sundry expenses associated with manufacturing costs. If each iMac costs Apple $800 in parts, you can be sure they're not making $200 in pure profit. I don't know what they would actually make, but it ain't that <hr></blockquote>



    sure their profit margins are that big. each iMac makes from 200-300 in profit I believe. that has to be divided with the reseller somehow as well.



    [quote]I whole heartedly agree. And I think that there will be a 1499 iMac with the LCD and SuperDrive. Why?? Because if you add the current costs of everything (and you do realize that Apple probably buys those drives at about 500 a piece. Maybe 600) it is about 1100 -1200. So selling them at 1499 is still about the 20 - 25% profit margin. So I think it is reasonably possible to see a SuperDrive Equipped iMac here soon. <hr></blockquote>



    you're prices are way to high. retail Superdrives go for 600 now. Apple likely gets them for around 300-350



    [ 12-02-2001: Message edited by: applenut ]</p>
  • Reply 15 of 34
    Uh, applenut you need to define 'decently' and 'just fine' for me. My understanding is a Superdrive on a G3 is only going to give you about 10X encoding speed.
  • Reply 16 of 34
    applenutapplenut Posts: 5,768member
    [quote]Originally posted by Michael Grey:

    <strong>Uh, applenut you need to define 'decently' and 'just fine' for me. My understanding is a Superdrive on a G3 is only going to give you about 10X encoding speed.</strong><hr></blockquote>



    how's that your understanding? what basis do you have for that statement?
  • Reply 17 of 34
    Ok, buying all the components seperately:



    I've seen DVD-R drives (the Pioneer ones, like the superdrive) for $450. (US, all of it)



    How much is a 15inch LCD? $200 someone said. so let's assume $300.



    Then you add the HD...another $100 for a 80GB drive on sale.



    That's $850, not including the graphics/sound.



    So then add maybe $150 for those.



    Then add $50 for othe components (such as keyboard, internal speakers and mouse)



    Add...I don't know...shot in the dark here...$100 for the ports (2Firewire, 2USB, 1 Ethernet, 1 Modem, 1 Ex. Speaker, 1 external monitor support).



    Add another $100 for the cost of the case (design included - those are hell fo expensive to design). That's a total of $1250.



    Then add manufacturing, maybe $50.



    Add $50 perhaps for advertising (which they'll do a lot of). that's $1350, buying it all seperately (if I got my prices right).



    So they could sell that for $1500 and make $150/computer (assuming no middle-man and no discout - employee/gov/student/education)



    Oh - I forgot to add the motherboard and CPU



    Andrew
  • Reply 18 of 34
    bogiebogie Posts: 407member
    I think iMacs should be under $1500.



    High end should be $1200, the goal is to get them all under $1000.



    Just my take, it would make them a bargin deal and you could keep iBooks at $900-$1500 then.
  • Reply 19 of 34
    eugeneeugene Posts: 8,254member
    The feasible range is $1000-$1500.



    Any higher and you lose customers. Any lower and you start selling crappy machines.
  • Reply 20 of 34
    applenutapplenut Posts: 5,768member
    [quote]Originally posted by Bogie:

    <strong>I think iMacs should be under $1500.



    High end should be $1200, the goal is to get them all under $1000.



    Just my take, it would make them a bargin deal and you could keep iBooks at $900-$1500 then.</strong><hr></blockquote>

    I think the goal is to get them all under 1000 at all. I think the goal is to offer a comeptitive computer at a competitive price. Apple doesn't want to become an emachines selling crap for under a 1000.
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