... and you have to pay a big stinking fee to Microsoft every time you need to upgrade Windows. Not nearly so expensive with MacOSX. Not to mention the outrageous costs for upgrading mainline programs such as Office on Windows.
To me, I will gladly plunk down some extra money --it's not that much when you look at the overall costs. In fact to me it is a much better bargain, not to mention a much more friendly and intuitive environment. Plus I know I am fueling Apple's R&D for more and better stuff all the time.
Which is why some people don't buy. It's also why Apple's doing so well as a profitable business. Every product is 'too expensive' for some, and 'just right' for others. It's a pretty basic business decision of optimizing the price point to maximize profits between the 'too expensives' and the 'just rights'. Doing otherwise would make little business sense.
It helps to imagine what you would do if you were the owner of a business and wanted to be financially successful. Once the optimal price point is found, the business' job is then to find ways to do things like cut costs, make new or better products (innovate), etc.
It's very simple: Apple sells Macs at the "price the market will bear". They're not too expensive for me so I buy them and I don't bitch about how I consider HP's products to be shoddy. If Macs are too expensive for you, buy something else and be happy about it! There's nobody forcing you to spend your hard-earned money on Macs, right?
HP is giving away computers so it can get its profit from selling services, accessories, software, and inks and toners.
If that's HP's brilliant "strategy" in the PC market, they'd better hope Apple doesn't get into the "accessories, software, inks and toners" business. Because if they do, HP is pretty much toast outside of the corporate infrastructure sector, where they face heavy competition from IBM and Oracle.
Because not trying at all is a failure on my part. Trying but failing to get through to them is a failure on THEIR part.
Quote:
Originally Posted by bettieblue
That "blog post" was written by a 15 year old.
It compares Apple to a single Windows PC vendor. Compare it to all of them and see if volume ends up making more money?
I'm not surprised you didn't hear the WHOOSH of this article going over your head; set to appropriate scale, it's flying up around Jupiter's Trojan asteroids.
HP is the biggest PC vendor in the US - with 30% of the market. So if Apple is making more money than HP in the computer business then yes, that's pretty significant.
We can expect Apple to be doing even better in 2011 since it has outgrown the industry in each quarter since 2009, and the Air has most likely resulted in an increase in margins.
What about the operating systems? I am sure that HP is having to pay for Windows where as Apple is including the operating system for free.
Irrelevant.
Apple's R&D expenses (which would include the cost to develop OS X) are deducted from the gross margin before you get net income. R&D is a line item in their quarterly SEC filings.
Huh? Apple is including their OS as part of the cost of the computer, and they don't get that OS for free - they are paying millions and millions in R&D costs to continue developing MacOS every year.
Quote:
Originally Posted by shovelheadrider72
What about the operating systems? I am sure that HP is having to pay for Windows where as Apple is including the operating system for free.
Fair is what the market will support. I have Macs that are 10yrs old and still running without an issue. I have sold Macs that are 10yrs old and they have no issues. The only reason I updated to intel was due to my business, and most of the apps I use will now run only on Intel. As long as I continue to receive this type of performance from Mac, I will continue to purchase.
In real dollars for me, Macs have gotten cheaper. I used to have run a Dual G5 for my business, now, because of the new iMacs, are all I need. This has easily saved me 1k on just one computer. The G5 at this time is functioning as a media server, but can handle so much more.
It is my experience that pound for pound, dollar for dollar, Macs are more than fair value.
It compares Apple to a single Windows PC vendor. Compare it to all of them and see if volume ends up making more money?
Writing a blog post off of another blog post written by a 15 year old makes the "AI staff" look like a collection of Morons.
If you read and comprehended the article, you would understand the folly of your post. HP is likely the next most profitable PC maker, add in Dell and Acer and the ratio would go up...
Please don't try to reason with these people. They have absolutely no concept of supply and demand. They will never understand the math that says that Apple has doubled its market share over the last 10 years and continues to sell more computers on a percentage basis than a) the industry average and b) any other computer manufacturer.
The people you are arguing with have no concept of running a business. They prove over and over again that they would rather work twice as many hours for the same amount of money as what another person receives for offering a superior service.
How can you ever hope to get through to them.
Correct.
A certain percentage of readers here have zero understanding of the fundamentals of running a business, and will conveniently suspend the laws of physics in order to promote something they wish.
They don't understand that it's the overall marketplace that Apple looks at and how to address it, not just their individual usage case which is statistically irrelevant.
There is an obvious solution to HP's problem. All they have to do is raise their prices. Certainly, all of their loyal customers, (clients) will be happy to pay Apple prices for those fine HP products.
Comments
To me, I will gladly plunk down some extra money --it's not that much when you look at the overall costs. In fact to me it is a much better bargain, not to mention a much more friendly and intuitive environment. Plus I know I am fueling Apple's R&D for more and better stuff all the time.
This only shows how Apple makes their products too expensive.
http://en.wikipedia.org/wiki/Invisible_hand
Which is why some people don't buy. It's also why Apple's doing so well as a profitable business. Every product is 'too expensive' for some, and 'just right' for others. It's a pretty basic business decision of optimizing the price point to maximize profits between the 'too expensives' and the 'just rights'. Doing otherwise would make little business sense.
It helps to imagine what you would do if you were the owner of a business and wanted to be financially successful. Once the optimal price point is found, the business' job is then to find ways to do things like cut costs, make new or better products (innovate), etc.
/economics101
It's very simple: Apple sells Macs at the "price the market will bear". They're not too expensive for me so I buy them and I don't bitch about how I consider HP's products to be shoddy. If Macs are too expensive for you, buy something else and be happy about it! There's nobody forcing you to spend your hard-earned money on Macs, right?
ah - beat me to it!
HP is giving away computers so it can get its profit from selling services, accessories, software, and inks and toners.
If that's HP's brilliant "strategy" in the PC market, they'd better hope Apple doesn't get into the "accessories, software, inks and toners" business. Because if they do, HP is pretty much toast outside of the corporate infrastructure sector, where they face heavy competition from IBM and Oracle.
What profit margin does MS make on the OS?
We don't know exactly because MS don't break out margins from OS as separate from applications, but their gross margin is about 65%.
It compares Apple to a single Windows PC vendor. Compare it to all of them and see if volume ends up making more money?
Writing a blog post off of another blog post written by a 15 year old makes the "AI staff" look like a collection of Morons.
How can you ever hope to get through to them.
Because not trying at all is a failure on my part. Trying but failing to get through to them is a failure on THEIR part.
That "blog post" was written by a 15 year old.
It compares Apple to a single Windows PC vendor. Compare it to all of them and see if volume ends up making more money?
I'm not surprised you didn't hear the WHOOSH of this article going over your head; set to appropriate scale, it's flying up around Jupiter's Trojan asteroids.
It compares Apple to a single Windows PC vendor.
HP is the biggest PC vendor in the US - with 30% of the market. So if Apple is making more money than HP in the computer business then yes, that's pretty significant.
We can expect Apple to be doing even better in 2011 since it has outgrown the industry in each quarter since 2009, and the Air has most likely resulted in an increase in margins.
What about the operating systems? I am sure that HP is having to pay for Windows where as Apple is including the operating system for free.
Irrelevant.
Apple's R&D expenses (which would include the cost to develop OS X) are deducted from the gross margin before you get net income. R&D is a line item in their quarterly SEC filings.
What about the operating systems? I am sure that HP is having to pay for Windows where as Apple is including the operating system for free.
That "blog post" was written by a 15 year old.
It compares Apple to a single Windows PC vendor. Compare it to all of them and see if volume ends up making more money?
Writing a blog post off of another blog post written by a 15 year old makes the "AI staff" look like a collection of Morons.
Definitely
In real dollars for me, Macs have gotten cheaper. I used to have run a Dual G5 for my business, now, because of the new iMacs, are all I need. This has easily saved me 1k on just one computer. The G5 at this time is functioning as a media server, but can handle so much more.
It is my experience that pound for pound, dollar for dollar, Macs are more than fair value.
That "blog post" was written by a 15 year old.
It compares Apple to a single Windows PC vendor. Compare it to all of them and see if volume ends up making more money?
Writing a blog post off of another blog post written by a 15 year old makes the "AI staff" look like a collection of Morons.
If you read and comprehended the article, you would understand the folly of your post. HP is likely the next most profitable PC maker, add in Dell and Acer and the ratio would go up...
6.66% - The profit margin of the beast ?
Retail Price "of the Beast".
Please don't try to reason with these people. They have absolutely no concept of supply and demand. They will never understand the math that says that Apple has doubled its market share over the last 10 years and continues to sell more computers on a percentage basis than a) the industry average and b) any other computer manufacturer.
The people you are arguing with have no concept of running a business. They prove over and over again that they would rather work twice as many hours for the same amount of money as what another person receives for offering a superior service.
How can you ever hope to get through to them.
Correct.
A certain percentage of readers here have zero understanding of the fundamentals of running a business, and will conveniently suspend the laws of physics in order to promote something they wish.
They don't understand that it's the overall marketplace that Apple looks at and how to address it, not just their individual usage case which is statistically irrelevant.
Retail Price "of the Beast".
That logo tells me that making computers wasn't the only thing that the two Steves were doing in that garage ...
That logo tells me that making computers wasn't the only thing that the two Steves were doing in that garage ...
...They were doing apple cider? Because that's Newton under a tree...