I think MSFT probably did put pressure on Apple but Apple was already talking about reduced margins at the last quarterly call. So I think they knew what coming before the rumors hit - and make the decision to change the offering a little while ago. Maybe some of the materials where not up to date with the change.
I think MSFT probably did put pressure on Apple but Apple was already talking about reduced margins at the last quarterly call. So I think they knew what coming before the rumors hit - and make the decision to change the offering a little while ago. Maybe some of the materials where not up to date with the change.
The margin drop was due to the big drop in the iTouch pricing.
It's also possible, if the rumors about Apple pricing the new MacBooks at $999 again are true, that that is also involved.
It's quite possible that a 16 GB Nano was unexpected.
The margin drop was due to the big drop in the iTouch pricing.
It's also possible, if the rumors about Apple pricing the new MacBooks at $999 again are true, that that is also involved.
It's quite possible that a 16 GB Nano was unexpected.
Based on the info at hand, I think the 16GB Nano was most likely a last minute decision. Based on Apple's growth and apparent saturation of the >$1,000 consumer market (among other factors) I think a $999 MB will probably occur.
Based on the info at hand, I think the 16GB Nano was most likely a last minute decision. Based on Apple's growth and apparent saturation of the >$1,000 consumer market (among other factors) I think a $999 MB will probably occur.
Exactly, now maybe pressure from Microsoft can force Apple to implement wireless sync for the iPod touch and iPhone -- it can't be that hard to implement. I mean, the iPod touch/iPhone can already access your library wirelessly with the Remote.app.
That's one of the features that I miss from the Zune 30 that I had before upgrading to a 32GB iPod touch. Since my Zune stayed in my car most of the time hooked up with a car power adapter, my Zune would wirelessly sync while it was in my garage automatically without having to even take it out of my car.
Has anyone tried wireless sync on zune? How well does it work?
I know on iPhone, if the Wifi is on and data continously transfer between the PC and iPhone, the battery dies in less than one hour.
And if you plug in iPhone to a power socket and use wireless sync, that defeats the purpose.
So I would like to know - how does the Zune batter hold up with Wifi sync?
There is also the burning as an Audio CD. Since HDD space is cheap if you re-encode back into iTunes as AAC and higher than 192kbps you aren't going to lose any content that is discernible. DRM Dumpster will automate the entire process legally using iTunes and re-writable CD.
Why use a real CD? Use a virtual CD burner like Phantom Burner instead.
Based on the evidence, I don't think Apple has any choice if it wishes to maintain its growth in the consumer sector. My question is, will it be for this holiday season with an out-of-the-gate $999 or lower MacBack or a drop in price across the board 9or at least across the MB line) announced at MacWorld 2009 after the, reportedly, new cases have had a few months to attract the early adopters at the higher price.
Based on the evidence, I don't think Apple has any choice if it wishes to maintain its growth in the consumer sector. My question is, will it be for this holiday season with an out-of-the-gate $999 or lower MacBack or a drop in price across the board 9or at least across the MB line) announced at MacWorld 2009 after the, reportedly, new cases have had a few months to attract the early adopters at the higher price.
I wish Apple has a EEE PC competitor.... can they do it? Basically, AppleTV with a 9" screen in a mini notebook form and SSD instead of HD for $300. Can we dream?
I wish Apple has a EEE PC competitor.... can they do it? Basically, AppleTV with a 9" screen in a mini notebook form and SSD instead of HD for $300. Can we dream?
But is that segment profitable? The latest reports show that netbooks, despite their low price account for a very small percent of the PC marketshare. I know the category is new, but because of the low price the profit is still low, even with Apple's average profit margin on Macs, so the volume would have to be considerably high.
Quote:
Originally Posted by vinea
The funny thing is Apple isn't losing THAT much money on it given their business model and that Amazon makes it so easy to use with the iPod.
Good point. Since the iPod is so entrenched, all it's doing is reinforcing digital downloads and increasing the iPod's relevance. Now, if MS' Marketplace's subscription media gains traction then Apple should be worried, but I don't think even MS sees that as a possibility at this point.
But is that segment profitable? The latest reports show that netbooks, despite their low price account for a very small percent of the PC marketshare. I know the category is new, but because of the low price the profit is still low, even with Apple's average profit margin on Macs, so the volume would have to be considerably high.
.
Take a look at Amazon's top sellers for computers. EEE PC occupies half of the top 10, squeezing Mac Mini to #5 (last time I checked).
And when you look at margin, it is important to look at it as %, instead of $. If the cost to Apple is $200 and sells for $300, that's 33% margin, in line with other Apple hardware.
Take a look at Amazon's top sellers for computers. EEE PC occupies half of the top 10, squeezing Mac Mini to #5 (last time I checked).
And when you look at margin, it is important to look at it as %, instead of $. If the cost to Apple is $200 and sells for $300, that's 33% margin, in line with other Apple hardware.
It's important to look at the total profit. 33% profit on a million units of an Acme widget seems like a lot until i tell you that the unit price is only 3¢. Apple would have to have 100% profit on a $300 netbook to make the same profit it makes from the average unit sale from a MB. Not to mention these netbooks are budget machines that doesn't seem to be getting any decent profit anyway.
Even so close to a refresh and reports of sales dropping, the MB is still #7 in sales on Amazon. Wait until the new Macs come out. I don't think we'll see one Asus besting any of Apple's MBs or 15" MBP models. However, regardless of how well sales look on Amazon they don't seem to represent the whole market. What B&M stores are selling netbooks right now?
PS: I'd love an official OS X netbook, but at least there is OSx86 for that with adequate drivers for Eee PC and MSI Wind since they don't.
Has anyone tried wireless sync on zune? How well does it work?
I know on iPhone, if the Wifi is on and data continously transfer between the PC and iPhone, the battery dies in less than one hour.
And if you plug in iPhone to a power socket and use wireless sync, that defeats the purpose.
So I would like to know - how does the Zune batter hold up with Wifi sync?
Plugging it in to a wall socket doesn't totally defeat the purpose. Partially, yeah. I sync with a G5 that's upstairs. But I mostly charge downstairs. (they're some downsides to plugging an iPod into a G5 running Tiger) So if I could grab new podcasts before I leave without going upstairs, that would be nice. Really nice.
Based on the evidence, I don't think Apple has any choice if it wishes to maintain its growth in the consumer sector. My question is, will it be for this holiday season with an out-of-the-gate $999 or lower MacBack or a drop in price across the board 9or at least across the MB line) announced at MacWorld 2009 after the, reportedly, new cases have had a few months to attract the early adopters at the higher price.
With conditions being what they are, the psychological effect of dropping to $999 from $1,099 will be great. We've discussed the psychological effects of pricing before, as I'm sure you remember.
I'm not sure if Apple can do this across the line, though they often do lower prices after a while.
I wish Apple has a EEE PC competitor.... can they do it? Basically, AppleTV with a 9" screen in a mini notebook form and SSD instead of HD for $300. Can we dream?
The question is, should they?
I don't think the pricing would work anyway. The EEE doesn't have an SSD, by the way. It has soldered in (slow) flash chips. That's much cheaper.
Take a look at Amazon's top sellers for computers. EEE PC occupies half of the top 10, squeezing Mac Mini to #5 (last time I checked).
And when you look at margin, it is important to look at it as %, instead of $. If the cost to Apple is $200 and sells for $300, that's 33% margin, in line with other Apple hardware.
But, you don't know the costs. It's highly doubtful that anyone could make $100 on a $300 product. $50 would be considered very good, and $25 would be more like it.
Don't throw "margin" around. You must use it properly. Gross margins mean one thing, and net margins, or profit, mean another. You can have good gross margins, and still not make a profit.
The percentage and the dollar result mean the same thing. They are just two different ways of expressing it.
Comments
I think MSFT probably did put pressure on Apple but Apple was already talking about reduced margins at the last quarterly call. So I think they knew what coming before the rumors hit - and make the decision to change the offering a little while ago. Maybe some of the materials where not up to date with the change.
The margin drop was due to the big drop in the iTouch pricing.
It's also possible, if the rumors about Apple pricing the new MacBooks at $999 again are true, that that is also involved.
It's quite possible that a 16 GB Nano was unexpected.
The margin drop was due to the big drop in the iTouch pricing.
It's also possible, if the rumors about Apple pricing the new MacBooks at $999 again are true, that that is also involved.
It's quite possible that a 16 GB Nano was unexpected.
Based on the info at hand, I think the 16GB Nano was most likely a last minute decision. Based on Apple's growth and apparent saturation of the >$1,000 consumer market (among other factors) I think a $999 MB will probably occur.
Based on the info at hand, I think the 16GB Nano was most likely a last minute decision. Based on Apple's growth and apparent saturation of the >$1,000 consumer market (among other factors) I think a $999 MB will probably occur.
I'd like to see it.
Exactly, now maybe pressure from Microsoft can force Apple to implement wireless sync for the iPod touch and iPhone -- it can't be that hard to implement. I mean, the iPod touch/iPhone can already access your library wirelessly with the Remote.app.
That's one of the features that I miss from the Zune 30 that I had before upgrading to a 32GB iPod touch. Since my Zune stayed in my car most of the time hooked up with a car power adapter, my Zune would wirelessly sync while it was in my garage automatically without having to even take it out of my car.
Has anyone tried wireless sync on zune? How well does it work?
I know on iPhone, if the Wifi is on and data continously transfer between the PC and iPhone, the battery dies in less than one hour.
And if you plug in iPhone to a power socket and use wireless sync, that defeats the purpose.
So I would like to know - how does the Zune batter hold up with Wifi sync?
There is also the burning as an Audio CD. Since HDD space is cheap if you re-encode back into iTunes as AAC and higher than 192kbps you aren't going to lose any content that is discernible. DRM Dumpster will automate the entire process legally using iTunes and re-writable CD.
Why use a real CD? Use a virtual CD burner like Phantom Burner instead.
Unfortunately, it is available for Windows only.
I'd like to see it.
Based on the evidence, I don't think Apple has any choice if it wishes to maintain its growth in the consumer sector. My question is, will it be for this holiday season with an out-of-the-gate $999 or lower MacBack or a drop in price across the board 9or at least across the MB line) announced at MacWorld 2009 after the, reportedly, new cases have had a few months to attract the early adopters at the higher price.
Based on the evidence, I don't think Apple has any choice if it wishes to maintain its growth in the consumer sector. My question is, will it be for this holiday season with an out-of-the-gate $999 or lower MacBack or a drop in price across the board 9or at least across the MB line) announced at MacWorld 2009 after the, reportedly, new cases have had a few months to attract the early adopters at the higher price.
I wish Apple has a EEE PC competitor.... can they do it? Basically, AppleTV with a 9" screen in a mini notebook form and SSD instead of HD for $300. Can we dream?
The studios, except for EMI, aren't allowing Apple to sell DRM-free audio.
04-MAR-2002 ? Jobs talks about the pitfalls of DRM* (source)
(2003)
(2004)
(2005)
(2006)
06-FEB-2007 ? Steve Jobs writes open letter to abolish DRM (source)
11-FEB-2007 ? Warner CEO calls Jobs' DRM stance "completely without logic or merit" (source)
02-APR-2007 ? EMI music on iTunes Store is now DRM free (source)
16-MAY-2007 ? Amazon announced DRM free music with EMI (source)
10-AUG-2007 ? Universal agrees to sell DRM-free music through Amazon (source)
25-SEP-2007 ? Amazon launches its MP3 service (source)
27-DEC-2007 ? Warner agrees to sell DRM-free music through Amazon (source)
10-JAN-2008 ? Sony BMG agrees to sell DRM-free music through Amazon (source)
How 'bout them Apples?
* Steve Jobs in 2002 said, "If you legally acquire music, you need to have the right to manage it on all other devices that you own."
The funny thing is Apple isn't losing THAT much money on it given their business model and that Amazon makes it so easy to use with the iPod.
I wish Apple has a EEE PC competitor.... can they do it? Basically, AppleTV with a 9" screen in a mini notebook form and SSD instead of HD for $300. Can we dream?
But is that segment profitable? The latest reports show that netbooks, despite their low price account for a very small percent of the PC marketshare. I know the category is new, but because of the low price the profit is still low, even with Apple's average profit margin on Macs, so the volume would have to be considerably high.
The funny thing is Apple isn't losing THAT much money on it given their business model and that Amazon makes it so easy to use with the iPod.
Good point. Since the iPod is so entrenched, all it's doing is reinforcing digital downloads and increasing the iPod's relevance. Now, if MS' Marketplace's subscription media gains traction then Apple should be worried, but I don't think even MS sees that as a possibility at this point.
But is that segment profitable? The latest reports show that netbooks, despite their low price account for a very small percent of the PC marketshare. I know the category is new, but because of the low price the profit is still low, even with Apple's average profit margin on Macs, so the volume would have to be considerably high.
.
Take a look at Amazon's top sellers for computers. EEE PC occupies half of the top 10, squeezing Mac Mini to #5 (last time I checked).
And when you look at margin, it is important to look at it as %, instead of $. If the cost to Apple is $200 and sells for $300, that's 33% margin, in line with other Apple hardware.
Take a look at Amazon's top sellers for computers. EEE PC occupies half of the top 10, squeezing Mac Mini to #5 (last time I checked).
And when you look at margin, it is important to look at it as %, instead of $. If the cost to Apple is $200 and sells for $300, that's 33% margin, in line with other Apple hardware.
It's important to look at the total profit. 33% profit on a million units of an Acme widget seems like a lot until i tell you that the unit price is only 3¢. Apple would have to have 100% profit on a $300 netbook to make the same profit it makes from the average unit sale from a MB. Not to mention these netbooks are budget machines that doesn't seem to be getting any decent profit anyway.
Even so close to a refresh and reports of sales dropping, the MB is still #7 in sales on Amazon. Wait until the new Macs come out. I don't think we'll see one Asus besting any of Apple's MBs or 15" MBP models. However, regardless of how well sales look on Amazon they don't seem to represent the whole market. What B&M stores are selling netbooks right now?
PS: I'd love an official OS X netbook, but at least there is OSx86 for that with adequate drivers for Eee PC and MSI Wind since they don't.
Has anyone tried wireless sync on zune? How well does it work?
I know on iPhone, if the Wifi is on and data continously transfer between the PC and iPhone, the battery dies in less than one hour.
And if you plug in iPhone to a power socket and use wireless sync, that defeats the purpose.
So I would like to know - how does the Zune batter hold up with Wifi sync?
Plugging it in to a wall socket doesn't totally defeat the purpose. Partially, yeah. I sync with a G5 that's upstairs. But I mostly charge downstairs. (they're some downsides to plugging an iPod into a G5 running Tiger) So if I could grab new podcasts before I leave without going upstairs, that would be nice. Really nice.
Has anyone tried wireless sync on zune? How well does it work?
I know on iPhone, if the Wifi is on and data continously transfer between the PC and iPhone, the battery dies in less than one hour.
And if you plug in iPhone to a power socket and use wireless sync, that defeats the purpose.
So I would like to know - how does the Zune batter hold up with Wifi sync?
Whenever a Zune comes in range of its host PC, it automatically wirelessly syncs. It's a simple as that.
Whenever a Zune comes in range of its host PC, it automatically wirelessly syncs. It's a simple as that.
That sounds like a bug, not a feature.
Based on the evidence, I don't think Apple has any choice if it wishes to maintain its growth in the consumer sector. My question is, will it be for this holiday season with an out-of-the-gate $999 or lower MacBack or a drop in price across the board 9or at least across the MB line) announced at MacWorld 2009 after the, reportedly, new cases have had a few months to attract the early adopters at the higher price.
With conditions being what they are, the psychological effect of dropping to $999 from $1,099 will be great. We've discussed the psychological effects of pricing before, as I'm sure you remember.
I'm not sure if Apple can do this across the line, though they often do lower prices after a while.
I wish Apple has a EEE PC competitor.... can they do it? Basically, AppleTV with a 9" screen in a mini notebook form and SSD instead of HD for $300. Can we dream?
The question is, should they?
I don't think the pricing would work anyway. The EEE doesn't have an SSD, by the way. It has soldered in (slow) flash chips. That's much cheaper.
The funny thing is Apple isn't losing THAT much money on it given their business model and that Amazon makes it so easy to use with the iPod.
I'm not sure Apple's losing any money. The numbers have been moving up nicely in music sales.
Take a look at Amazon's top sellers for computers. EEE PC occupies half of the top 10, squeezing Mac Mini to #5 (last time I checked).
And when you look at margin, it is important to look at it as %, instead of $. If the cost to Apple is $200 and sells for $300, that's 33% margin, in line with other Apple hardware.
But, you don't know the costs. It's highly doubtful that anyone could make $100 on a $300 product. $50 would be considered very good, and $25 would be more like it.
Don't throw "margin" around. You must use it properly. Gross margins mean one thing, and net margins, or profit, mean another. You can have good gross margins, and still not make a profit.
The percentage and the dollar result mean the same thing. They are just two different ways of expressing it.
Whenever a Zune comes in range of its host PC, it automatically wirelessly syncs. It's a simple as that.
I hope that "feature" can be turned off.