World of Pain!
<a href="http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-26-2002/0001789141&EDATE="; target="_blank">LINKAGE</a>
And the INDEPENDENT TESTING PDF <a href="http://www.etestinglabs.com/main/reports/gateway.pdf"; target="_blank">LINKIES</a>
We talked about this before, but the interesting thing is that Gateway is going right after the iMac in their ads. They're playing the numbers game (timed tests and price). I think consumers are highly receptive to this kind of advert, phrases like 6X faster resonate with consumers. You can't whine about megahurts myths when the tests just time tasks to completion. The mac gets spanked bad, and Gateway wants to make sure everyone gets it. They're going to be agressive with their efforts -- over 80% of adults will see their commercials a dozen times over the next month.
"It's cheaper too!" And the tech press have claimed it's as stylish <img src="graemlins/oyvey.gif" border="0" alt="[No]" /> (well, we know it's not, but that doesn't matter, it's good enough)
Still, Apple better do something quick. iMac is supposed to bring in converts, and with that Gateway's spec/price and marketing, Gateway may just end up keeping a lot of those converts all for themselves.
The campaign seems to be a perfect mix of hard reality and FUD. I think it could be damaging going into the Back-to-school/X-mas season.
edit****
It includes FIREWIRE TOO, and a PC-CARD slot! Life is gonna get a little stressful over at Apple marketing.
[ 08-26-2002: Message edited by: Matsu ]</p>
And the INDEPENDENT TESTING PDF <a href="http://www.etestinglabs.com/main/reports/gateway.pdf"; target="_blank">LINKIES</a>
We talked about this before, but the interesting thing is that Gateway is going right after the iMac in their ads. They're playing the numbers game (timed tests and price). I think consumers are highly receptive to this kind of advert, phrases like 6X faster resonate with consumers. You can't whine about megahurts myths when the tests just time tasks to completion. The mac gets spanked bad, and Gateway wants to make sure everyone gets it. They're going to be agressive with their efforts -- over 80% of adults will see their commercials a dozen times over the next month.
"It's cheaper too!" And the tech press have claimed it's as stylish <img src="graemlins/oyvey.gif" border="0" alt="[No]" /> (well, we know it's not, but that doesn't matter, it's good enough)
Still, Apple better do something quick. iMac is supposed to bring in converts, and with that Gateway's spec/price and marketing, Gateway may just end up keeping a lot of those converts all for themselves.
The campaign seems to be a perfect mix of hard reality and FUD. I think it could be damaging going into the Back-to-school/X-mas season.
edit****
It includes FIREWIRE TOO, and a PC-CARD slot! Life is gonna get a little stressful over at Apple marketing.
[ 08-26-2002: Message edited by: Matsu ]</p>
Comments
I'm talking about the advertising campaigns around two competing products. Read the first link. Gateway is not just making a better spec'd machine, they're overtly trumping the spec as the major selling point against a similar iMac. That really hasn't happened before as the computers were too dissimilar. But now Gateway is forcing consumers to put the two machines side by side before they spin the numbers.
I think it will be a very effective way to minimize the strengths of the iMac (A-I-O simplicity) while playing the strengths of the Profile (a degree of FUD, and the spec/price performance game)
Marketing-wise, Apple may be in trouble.
[ 08-26-2002: Message edited by: Matsu ]</p>
More RAM? the $1499 iMac cames with 256 MB of RAM. The $1499 Profile 4 also comes with 256 MB of RAM. Apple can also push the fact that the iMac can come equipped with a DVD-R drive.
Gateway should be more worried about Dell anyway. <img src="graemlins/lol.gif" border="0" alt="[Laughing]" />
[ 08-26-2002: Message edited by: Eugene ]</p>
on the high end, the profile comes in at $2,188 vs. $1,949.
one note: on both windows pc's i included Antivirus software, as that's basically a necessity at this point. RAM was bought through the Apple store, although anyone with a brain could upgrade that themselve.
on the high end system, i had to put an 80GB HD on the profile, as there was no option for a 60GB. however, the profile just has a CD-RW/DVD-ROM, not a DVD burner/CD burner.
i'm sorry, but i'm not seeing the huge price advantage from Gateway here. plus i'd be stuck with WinXP.
edit: they used the second iMac for their test. equipped the low-end profile with the same hardware for the pricing above.
[ 08-26-2002: Message edited by: alcimedes ]</p>
How the heck did you configure the Gateway above $2000???
[ 08-26-2002: Message edited by: Eugene ]</p>
<strong>The high end model does have a 17 inch screen...
How the heck did you configure the Gateway above $2000???
</strong><hr></blockquote>
well, i looked at the Tech specs from the article linked above. (the .pdf)
at the end, they have a table of the setup on the different machines.
i have both models set to exactly what the tech specs on the test are, execpt for a smaller HD on the high end system. i also included speakers for the high end profile, as they are included with the iMac.
so go to configre and do the following. from a base of $1,499
processor to 2.66Ghz. (+250)
RAM to 512MB (+160) already at $1,900
HD to 80GB (+60)
CDRW-DVD-RAM (+100)
AV software (+69)
speakers (+50) or (+25)
you now have a total of $2,163. that does not include a DVD burner, but does have an extra 20GB of HD space. a pioneer DVD burner would add at least another $300 if you could put that in instead of the CDRW-DVD-ROM drive, but you can't.
a DVD combo drive, on the other hand, runs you about $70 retail.
also the second price i have there is with the cheap-o speakers. not sure how they weigh in against the iMacs pro speakers, but it didn't really make that big of a difference anyway. i'm sure i could also get the iMac price down a boatload by buying RAM 3rd party, but i wanted to stick with configs. straight from the manf. i also could have saved money on the PC's by buying antivirus software 3rd party, but again went with the manf. pricing. the ram from Apple vs. the AV from Gateway probably level out. if anything, you would save more by buying RAM 3rd party.
i took another look at the configs between the iMac and the Profile for the low end machines. turns out those aren't even close on features either. did my first pricing wrong. with equivelent hardware it tests out like this.
Profile base price of $999
RAM to 256 (+80)
HD to 40GB (+50)
CDRW Combo drive (+180)
Modem (+30)
AV software (+69)
Speakers (+25)
final price of $1,433.00 vs. the same iMac price of $1,499.00. (the compared the second iMac with the combo drive)
$66 difference between them.
for those who say that Apple has insanely high prices *ahem, Matsu* , i think this would show that is not the case. this is about the only product competing in the same space. i'd take those benchmarks with a grain of salt, but still, your OS and multimedia app. choices are so rotton with the gateway bundle.
a Gateway comissioned test to find out how fast the Gateway is in comparison to a competitor's product holds about as much weight as Steve's Photoshop bakeoffs. if you won't accept the one, why accept the other?
edit: little clean up.
[ 08-26-2002: Message edited by: alcimedes ]</p>
description from maccentral reader
[quote]I just saw one of these ads on CNBC, they have the tagline "Think Smarter" and they are VICIOUS. The butt-ugly Profile 4 is jumping over the iMac while the narrator describes how its "more powerful" runs "thousands more software programs" etc, when he says the Profile 4 is "cheaper" the Profile 4 sticks out its toungue at the iMac.
<hr></blockquote>
Maybe this is the kick in the ass that Apple marketing needs. it's about time they have some motivation.
2. that thing is ugly, even idiots will be able to see that.
3. Steve is gonna take a trip down to marketing and tell them to take the gloves off and its time to rumble.
advantage: apple.
disgust: gayteway.
Hey make sure they know that we have video-MIRRORING, not VGA out...
Or how about...
Yeah, but they used a celeron and cut the PIV's level 3 cache in half.....
(Vs. none at all on the iMac)
Nick
The problem with Apple is they never really 'get it' when it comes to selling to the masses. I like their commercials, I think they're great, they're fun, but in the same breath I realize that they aren't the greatest ads for moving product. They're good at building/maintaining the culture of cool that surrounds Apple, but dancing iMacs and stoned HS girls ultimatly don't move machines with the efficiency of a "Here's what you get, here's what it costs, this is why it' better!" type of ad. Then again, Apple matches so badly in the (admittedly a tad supericial) numbers game that maybe they can't afford to do the same type of ads as Gateway or Dell.
hrmmm...
If anyone read the newswire link in my topic post, you'd see that the adds are indeed a BRUTAL attack, and an effective one. They match the machines up and go one-buy-one knocking the mac untill finally mocking it's price. Brilliant.
You might say it's ugly, but you know it isn't. It's not beautiful like the iMac (few designs are) but it isn't ugly and there's nothing functionally wrong with it. It takes up little space and has good expansion/connectivity (better than the iMac in fact). It's a computer, that's what most buyers care about, they need a good price, not a work of art. The add appeals to that practicality while usurping enough of the iMacs space-efficiency advantages. You can also get it with Office. Parents who are signing the cheques have just heard all they need to know. Same with small businesses who needed compact machines.
It really is the perfect ad campaign. Apple can't just decide to turn up the advertising pressure, they need much faster machines before they can consider such a move.
The top Gateway Profile4 will (by Apple's own admisson) deliver performance close to that of a DP867, while managing to include a 17" TFT for only 300 more than the DP867. Rigged or not, the tests only enforce the act that the Gateway is significantly faster than any iMac, and nearly as quick as the bottom PM.
This has me tickled. My immediate reaction to CNet's posting was 'OMG, they took the bait!'
Apple's been getting bolder, w/ the Switch campaign a hurl of the gauntlet that can't be mistaken. And it worked.
<aapl_response_ad_1>
cue music: Who - Won't Get Fooled Again
fade in on profile4
voice-over: A monkey in a silk suit...
transition to steve ballmer's UberChimp video
track-sync: {meet the new boss}
voice-over: ...is still a monkey.
track-sync: {same as the old boss}
fade out, fade in on apple logo
track-sync: {final five chords}
fade out
</aapl_response_ad_1>
Gateway did forget to mention that it runs Winblows. Ah well, numbers sell.
I do agree, though, that if this doesnt give apple a kick in the %^&, nothing will!
Gateway's goal is NOT to hurt iMac sales directly, it is to sell more profile 4's. That is, they aim to prevent "switching", which apparently they see as a threat. Unless they have data that says a majority of people are considering Gateway directly, but instead choosing Apple, the ad is ridiculous.
By contrast, Apple has a 5% market share. Though they may be hurt slightly by the ad, the free publicity is worth millions. Apple does advertise on TV, but nowhere near as much as Gateway (that's anecdotal, but I assume we agree?).
The problem with this ad is that it gives free publicity to the iMac, a product with less TV screen time on its own. It also legitimizes Apple as a major player, worthy of taking on directly. Does anyone see how stupid this is? It is as if Gateway has reversed the wintel/mac roles. They are taking on a company with a 5% market share. It''s like General Motors running major ad campaign against, say, Daewoo. Logically, it should be the other way around.
Running an ad against the little guy, which Apple is compared to the wintel "conglomerate", just doesn't make any sense. It's as if Gateway has lost track of the big picture, by just focusing on the fact that Apple beat them out in Q2 in the US. I can just see Gateway's idiotic management, mapping out their "strategy" for regaining their spot over Apple. All the while, their tunnel vision prevents them from seeing that Apple isn't the problem, Dell HP and Sony are. Meanwhile, Apple lets pictures of the iMac get plastered all over prime time, and Gateway's spends millions on advertising.
Apple really doesn't have that much to lose. Granted, they might lose a few switchers as I said before. Personally, if I was Steve Jobs I would laugh my ass off at this ad, and get down on my knees and thank God that they ran it. You don't go after people that aren't real threat to you. It's a waste of energy.
<img src="graemlins/oyvey.gif" border="0" alt="[No]" />
[ 08-26-2002: Message edited by: SDW2001 ]</p>
As I explained in the other thread iMac is the ideal reference point because it is very well known and yet has distinct disadvantages (for this particular kind of marketing by numbers).
Think that iMacs constitute less than 1% of all computers sold yet they are an instantly recognizable computing icon. What that tells you is a lot of people know what an iMac is, yet most choose to buy something else. Why? Cost, spec, and FUD. Too expensive, too slow, not 'standard' or 'compatible' or 'expandable' enough.
By appearing to offer a computer with all of the space saving advantages, but faster, cheaper, more expandable, and more 'compatible' you create a great marketing hook. You use a clearly defined market (compact powerful AIO's) and demonstrate how you do it better and cheaper. DELL, IBM, SONY don't have such recognizable AIO's (if at all) and certainly not for sale in the USA. Plus, to many people Windows is perceived as an advantage. We know it isn't, but many see it as a great comfort/reassurance that their OS is the same as that on 95% of the computers out there. It's compatible! or so they think. So Gateway can also argue that you can get all of the benefit of an iMac at less cost and with greater speed, but also without that slightly weird platform that those 'artsy' types like but isn't good for much practical work.
Flame all you want, but that's what people think, and the fact that they continue to think it can only be blamed on Apple itself.
IBM had the NetVista X40
Sony had the SlimTop.
They're all discontinued. Gateway's been trying hard to get the AIO PC right, but they still haven't gotten it.
You're trying to tell me Gateway's trying to sell the Profile 4 to Dell, HP, Sony and IBM users showing comparisons between the its computer and a Mac?
Sorry, I don't buy that. That assumes too many things about the target audience.
They're targeting potential iMac buyers, and like you said, there aren't that many out there. Even worse, *most* potential iMac buyers aren't looking for the *best deal*