$100 increase for Apple's redesigned Mac mini seen as disappointment
Apple's redesigned Mac mini was released on Tuesday starting at $699, a $100 premium over the previous model -- a new price that one prominent Wall Street analyst said he believes is somewhat disappointing.
Shaw Wu with Kaufman Bros. issued a note to investors noting that the Mac mini refresh is the most significant for the desktop hardware since it was first introduced in January of 2005. The new hardware added an HDMI port and now has an aluminum unibody exterior. But those additions weren't enough to offset some dissatisfaction with the new price for Wu.
"The only disappointment we have is the price point of $699 vs. the previous price of $599," Wu wrote. "For the new form factor, faster processor, faster graphics, HDMI port, and more HDD storage, (Apple) believes the $100 premium is justified. The original Mac mini cost $499 and over the past (5-and-a-half) years the price point has increased by $200, though the technology has gotten significantly better."
Still, Wu remains impressed by the new hardware, particularly the adoption of the 320M embedded graphics chip already found in the 13-inch MacBook Pro and $999 MacBook. He said having the same embedded graphics across a variety of devices will allow Apple to simplify its supply chain and streamline software development.
While Tuesday's update to the Mac mini was welcome, Wu said he is still waiting for refreshes to the Mac Pro desktop and ultraportable MacBook Air notebook. He expects those updates to come soon, as signs of pending changes from supply chain sources have indicated to the analyst.
Rumors of a Mac Pro update have persisted for months. The new desktop is believed to adopt Intel's latest Core i7 processor with six cores. In March, AppleInsider reported that Apple is expected to release a major update to its Mac Pro workstations in June, along with a larger version of its LED Cinema Display.
The last major refresh to the Mac Pro equipped it with its Nehalem Xeon processors, with a high-end eight-core Mac Pro offering two 2.26GHz Quad-Core Intel Xeon 5500 chips. Earlier this month, Apple quietly upgraded that to a potential maximum 2.93GHz eight-core system.
Rumors of a MacBook Air upgrade have also lingered, but failed to materialize thus far. In January, it was suggested that the MacBook Air refresh might have seen a delay due to limited availability of Intel's Core i5 ultramobile processors. Those reports suggested Apple could adopt the ultra-thin 18W TDP processor. The Core i5-520UM has a maximum processor speed of 1.86GHz, and an integrated GPU with 500MHz of processing power. The 32nm dual-core chip also includes 3MB of L3 cache.
Apple last updated the MacBook Air in June 2009, dropping its entry price to $1,499 for a 1.86GHz Intel Core 2 Duo-based system.
Wu and Kaufman Bros. reiterated their recommendation for investors to buy AAPL stock. The firm has a $320 price target based on expectations of $15.77 earnings per share in calendar year 2011.
Shaw Wu with Kaufman Bros. issued a note to investors noting that the Mac mini refresh is the most significant for the desktop hardware since it was first introduced in January of 2005. The new hardware added an HDMI port and now has an aluminum unibody exterior. But those additions weren't enough to offset some dissatisfaction with the new price for Wu.
"The only disappointment we have is the price point of $699 vs. the previous price of $599," Wu wrote. "For the new form factor, faster processor, faster graphics, HDMI port, and more HDD storage, (Apple) believes the $100 premium is justified. The original Mac mini cost $499 and over the past (5-and-a-half) years the price point has increased by $200, though the technology has gotten significantly better."
Still, Wu remains impressed by the new hardware, particularly the adoption of the 320M embedded graphics chip already found in the 13-inch MacBook Pro and $999 MacBook. He said having the same embedded graphics across a variety of devices will allow Apple to simplify its supply chain and streamline software development.
While Tuesday's update to the Mac mini was welcome, Wu said he is still waiting for refreshes to the Mac Pro desktop and ultraportable MacBook Air notebook. He expects those updates to come soon, as signs of pending changes from supply chain sources have indicated to the analyst.
Rumors of a Mac Pro update have persisted for months. The new desktop is believed to adopt Intel's latest Core i7 processor with six cores. In March, AppleInsider reported that Apple is expected to release a major update to its Mac Pro workstations in June, along with a larger version of its LED Cinema Display.
The last major refresh to the Mac Pro equipped it with its Nehalem Xeon processors, with a high-end eight-core Mac Pro offering two 2.26GHz Quad-Core Intel Xeon 5500 chips. Earlier this month, Apple quietly upgraded that to a potential maximum 2.93GHz eight-core system.
Rumors of a MacBook Air upgrade have also lingered, but failed to materialize thus far. In January, it was suggested that the MacBook Air refresh might have seen a delay due to limited availability of Intel's Core i5 ultramobile processors. Those reports suggested Apple could adopt the ultra-thin 18W TDP processor. The Core i5-520UM has a maximum processor speed of 1.86GHz, and an integrated GPU with 500MHz of processing power. The 32nm dual-core chip also includes 3MB of L3 cache.
Apple last updated the MacBook Air in June 2009, dropping its entry price to $1,499 for a 1.86GHz Intel Core 2 Duo-based system.
Wu and Kaufman Bros. reiterated their recommendation for investors to buy AAPL stock. The firm has a $320 price target based on expectations of $15.77 earnings per share in calendar year 2011.
Comments
GAH!
iPad FAIL.
Mini FAIL.
Stop going backwards!
EDIT:
Turns out it's just REALLY really well hidden this time. It still exists. I rescind my inflammatory reply.
Apple's redesigned Mac mini was released on Tuesday starting at $699, a $100 premium over the previous model -- a new price that one prominent Wall Street analyst said he believes is somewhat disappointing.
Shaw Wu with Kaufman Bros. issued a note to investors noting that the Mac mini refresh is the most significant for the desktop hardware since it was first introduced in January of 2005. The new hardware added an HDMI port and now has an aluminum unibody exterior. But those additions weren't enough to offset some dissatisfaction with the new price for Wu.
"The only disappointment we have is the price point of $699 vs. the previous price of $599," Wu wrote. "For the new form factor, faster processor, faster graphics, HDMI port, and more HDD storage, (Apple) believes the $100 premium is justified. The original Mac mini cost $499 and over the past (5-and-a-half) years the price point has increased by $200, though the technology has gotten significantly better."
Still, Wu remains impressed by the new hardware, particularly the adoption of the 320M embedded graphics chip already found in the 13-inch MacBook Pro and $999 MacBook. He said having the same embedded graphics across a variety of devices will allow Apple to simplify its supply chain and streamline software development.
While Tuesday's update to the Mac mini was welcome, Wu said he is still waiting for refreshes to the Mac Pro desktop and ultraportable MacBook Air notebook. He expects those updates to come soon, as signs of pending changes from supply chain sources have indicated to the analyst.
Rumors of a Mac Pro update have persisted for months. The new desktop is believed to adopt Intel's latest Core i7 processor with six cores. In March, AppleInsider reported that Apple is expected to release a major update to its Mac Pro workstations in June, along with a larger version of its LED Cinema Display.
The last major refresh to the Mac Pro equipped it with its Nehalem Xeon processors, with a high-end eight-core Mac Pro offering two 2.26GHz Quad-Core Intel Xeon 5500 chips. Earlier this month, Apple quietly upgraded that to a potential maximum 2.93GHz eight-core system.
Rumors of a MacBook Air upgrade have also lingered, but failed to materialize thus far. In January, it was suggested that the MacBook Air refresh might have seen a delay due to limited availability of Intel's Core i5 ultramobile processors. Those reports suggested Apple could adopt the ultra-thin 18W TDP processor. The Core i5-520UM has a maximum processor speed of 1.86GHz, and an integrated GPU with 500MHz of processing power. The 32nm dual-core chip also includes 3MB of L3 cache.
Apple last updated the MacBook Air in June 2009, dropping its entry price to $1,499 for a 1.86GHz Intel Core 2 Duo-based system.
Wu and Kaufman Bros. reiterated their recommendation for investors to buy AAPL stock. The firm has a $320 price target based on expectations of $15.77 earnings per share in calendar year 2011.
[ View this article at AppleInsider.com ]
What, Apple should cheapen up their stuff just to make the investors happy? I just recently threw away my Flowerpower imac after almost years. NO VIRUS, NO BREAK DOWNS NOTHING. It just got old and started to naturally break down. Speakers didn't work, ejection mechanism was sometimes working and it couldn't be upgrades to the latest OS.
You get what you pay for with Mac and the price is worth it. Macs keep their value. The price point? No big deal. I'll pay the price as long as I can receive the best user experience. Period.
iPad FAIL.
Stop going backwards!
If that is failure, what would be success?
Very disappointing. (I'll wait for the inevitable price drop).
However, $699 for this little machine does put it a bit into the boutique category.... Don't know if I can justify this one.
If anything they should have lowered the price $100, not raise it.
Nail on the head.
New hardware, new features, extra cost? How is that "disappointment" for investors? The only disappointment is that somewhere somehow Shaw Wu and his Kru are making money off Apple that those investors aren't getting a share of.
The feds should investigate them and leave the good companies (BP, massey energy, etc alone). Those companies are doing such wonderful things. Also, I think the telecoms are doing a great job. I could not ask more of my cable or phone providers. The fact that I have one choice of semi-fast internet in my area and the price goes up for no reason every other month pleases me as a consumer and citizen. You're doing a heck of a job brownie! Meanwhile, apple puts out crap and more crap. I demand an investigation immediately.
How much does Shaw Wu with Kaufman Bros. get paid by investors in Apple to tell them stuff they could find out for themselves?
New hardware, new features, extra cost? How is that "disappointment" for investors? The only disappointment is that somewhere somehow Shaw Wu and his Kru are making money off Apple that those investors aren't getting a share of.
It's disappointing because they used to offer a Mac starting at $499, then it was $599 and now it's $699. The price barrier will deter would-be Mac owners; whether it's worth the extra $200 is irrelevant for people who are willing to spend $499 but not $699 sans monitor/keyboard/mouse.
Maybe getting people to switch isn't such a big priority with Apple anymore.
I went to the store this morning and saw the price. Um, what? More expensive?
Then I went to the specs and saw 2GB as the base memory config, taking up both slots.
You have got to be kidding me.
The new mini has got some really nice features, but I think it's starting to stray from its original mission of providing a fairly inexpensive alternative to the folks contemplating switching from a Windows-based desktop machine.
Exactly. Great machine and great update, but it either ought to be cheaper or there ought to be a lower-end model.
it should have had Blu Ray. Doesn't that seem logical?
Apple believes that digital is the future and Blu-ray is a flash in the pan. They are not going to put it in their machines. Aside from perhaps the Pro and even then I bet not. They perhaps might maybe make the DVD player Blu-ray compat for when you add a 3rd party machine but I wouldn't count on that either
If anything they should have lowered the price $100, not raise it.
There used to be three models, $599, $799 and the server at $999. They kept the server as is and split the difference on the other two.