...Walmart puts a dozen of those doorbusters in each store, and they are gone by 6:15 AM. BestBuy has the lowend model in boxes, you don't handle it or use it - you grab it and go. Apple can't and won't do that - they have to sustain sales over the day and season. If you don't get that crap notebook at Walmart you go to the next store or next model up and get a nearly-crap notebook for $100 or $200 more. You'll be ripped, but you'll still go to Walmart and spend $100 a visit on other nonsense. With Apple if they tick you off they lose you for the foreseeable future. They can't afford that.
Apple's always special because mumble, mumble.
They can't possibly do what anyone else does because excuse, excuse.
They can't possibly do what anyone else does because excuse, excuse.
I'm pretty sure everyone has had ample opportunity by now to know that Apple has a fairly distinct business model, and it's nothing like WalMart or Best Buy.
I'm a big fan of the yearly November sale. I put off our last iMac purchase this year just for this date. Even though if you have a relationship with an Apple Rep, you typically receive discounts that match or beat the typical sales prices.
Looking forward, even Apple is going to have trouble in this economy. I have a feeling that even though this sales event is well attended, the after Xmas sales are going to be even better. Too many people reigning in their spending and preparing for the worst. It's going to add up to misery.
I like the price discounts and the bundles. It's fantastic to buy an iMac and get an inkjet for free or software discounts or even iPods.
I think when the dust settles and the holiday sales numbers come out, Apple will reevaluate their high margins and adjust their pricing slightly. If only to look like they are doing their part during the downturn to help ease the pain.
Rumor has it that Ben Bernanke called Steve Jobs. He wants his cash back.
I'm pretty sure everyone has had ample opportunity by now to know that Apple has a fairly distinct business model, and it's nothing like WalMart or Best Buy.
Black Friday has become more of a marketing tradition in the past few years. The goal for many stores is to drive enough volume to make the books balance for the year. Not all stores have to do so and Apple's stores certainly fit into that group. The problem however is that you have to do something for fear of being seen by the consumer as hard-hearted or exploitive.
In other words yes Apples deals have not been to conducive to generating a lot of happiness in the consumer. The exist however so that Apple can be seen as being with the program. In other words the response to Apple not offering any sort of discount would be a lot worst than the response they get for a minor adjustment to selling price. Past BF discounts simply keep Apple from becoming a target for mass negativity.
Now all that is about the past. For the coming Black Friday I do see real potential here for Apple to be aggressive on some products. For example I believe they have a lot of room on the current iPod line up for significant discounts. This do to the continual slide in Flash prices and the economies realized in the recent redesign. 10 % shouldn't be impossible here. The laptops won't be easy to discount so probably no more than $100. What will be interesting is the iMacs and Minis. Obviously the Mini is way past due and is being built on old technology and similarly but not quite as bad on the iMacs, so costs should be way down. I could see Apple offering 15 to 20% on on this old technology. Maybe more. In either case they should be able to keep their margins similar to when the devices where released.
Even more interesting is Mini as there are some other things to consider besides its old age. For example the unit is obviously scheduled to be replace with something new. Apple has all but said so. That replacement would most likely happen very soon after Christmas. As such I see a very good possibility that Apple might discount the Mini for the entire Christmas shopping season. Maybe 10 to 15%. Think about it as everyone including Apple knows it is old technology and everybody knows a replacement is coming so why not offer a real deal for the holidays. Apple won't loose money, at least relative to the margins the Mini had a release. Apple would gain the positive benefit of being reactive to the economy too. Further a deep discount on something that will disappear in January won't hurt Apple at all when it comes to marketing the new replacement product. Finally that deep discount will draw traffic into the stores all season long.
Are the BF discounts available for education pricing as well?
doubt it. it is typical with all retail companies that you can get sale pricing OR special pricing (ie, corporate, student, etc) but not both.
also, since there is the whole incentive thing with the iphone I doubt that they would do anything on the price for it. the best folks might get is a gift with or purchase with promo for that day/weekend. like "buy an iphone and get a free $25 gift card to the itunes store" (free car charger/accessory pack)
once again, another financial analyst talking out his butt.
when will the financial analysts realize that apple is run by steve jobs, not your run of the mill harvard mba graduate (yes those those guys that got us into this credit crisis).
the day that these analysts actually have it correct is the day that their own kind is at the helm of apple running it (into the ground). Any tech company with too many wall street types is doomed.
Quote:
When Toyota chairman Hiroshi Okuda was asked why GM is losing, he said: “GM hires the best MBAs, but Toyota hires the best engineers.” This applies to Google / Yahoo now.
And the different between Apple and Google is probably the number of MFAs they hire.
MFAs + Engineers = success
MBAs + more MBAs = FAIL
the only time these analysts are ever right is when the company they are analyzing makes most of there money below the line in the form of financial revenues, because that's the only time when similar minds are running the company.
Comments
...Walmart puts a dozen of those doorbusters in each store, and they are gone by 6:15 AM. BestBuy has the lowend model in boxes, you don't handle it or use it - you grab it and go. Apple can't and won't do that - they have to sustain sales over the day and season. If you don't get that crap notebook at Walmart you go to the next store or next model up and get a nearly-crap notebook for $100 or $200 more. You'll be ripped, but you'll still go to Walmart and spend $100 a visit on other nonsense. With Apple if they tick you off they lose you for the foreseeable future. They can't afford that.
Apple's always special because mumble, mumble.
They can't possibly do what anyone else does because excuse, excuse.
Apple's always special because mumble, mumble.
They can't possibly do what anyone else does because excuse, excuse.
I'm pretty sure everyone has had ample opportunity by now to know that Apple has a fairly distinct business model, and it's nothing like WalMart or Best Buy.
Looking forward, even Apple is going to have trouble in this economy. I have a feeling that even though this sales event is well attended, the after Xmas sales are going to be even better. Too many people reigning in their spending and preparing for the worst. It's going to add up to misery.
I like the price discounts and the bundles. It's fantastic to buy an iMac and get an inkjet for free or software discounts or even iPods.
I think when the dust settles and the holiday sales numbers come out, Apple will reevaluate their high margins and adjust their pricing slightly. If only to look like they are doing their part during the downturn to help ease the pain.
Rumor has it that Ben Bernanke called Steve Jobs. He wants his cash back.
I'm pretty sure everyone has had ample opportunity by now to know that Apple has a fairly distinct business model, and it's nothing like WalMart or Best Buy.
Black Friday has become more of a marketing tradition in the past few years. The goal for many stores is to drive enough volume to make the books balance for the year. Not all stores have to do so and Apple's stores certainly fit into that group. The problem however is that you have to do something for fear of being seen by the consumer as hard-hearted or exploitive.
In other words yes Apples deals have not been to conducive to generating a lot of happiness in the consumer. The exist however so that Apple can be seen as being with the program. In other words the response to Apple not offering any sort of discount would be a lot worst than the response they get for a minor adjustment to selling price. Past BF discounts simply keep Apple from becoming a target for mass negativity.
Now all that is about the past. For the coming Black Friday I do see real potential here for Apple to be aggressive on some products. For example I believe they have a lot of room on the current iPod line up for significant discounts. This do to the continual slide in Flash prices and the economies realized in the recent redesign. 10 % shouldn't be impossible here. The laptops won't be easy to discount so probably no more than $100. What will be interesting is the iMacs and Minis. Obviously the Mini is way past due and is being built on old technology and similarly but not quite as bad on the iMacs, so costs should be way down. I could see Apple offering 15 to 20% on on this old technology. Maybe more. In either case they should be able to keep their margins similar to when the devices where released.
Even more interesting is Mini as there are some other things to consider besides its old age. For example the unit is obviously scheduled to be replace with something new. Apple has all but said so. That replacement would most likely happen very soon after Christmas. As such I see a very good possibility that Apple might discount the Mini for the entire Christmas shopping season. Maybe 10 to 15%. Think about it as everyone including Apple knows it is old technology and everybody knows a replacement is coming so why not offer a real deal for the holidays. Apple won't loose money, at least relative to the margins the Mini had a release. Apple would gain the positive benefit of being reactive to the economy too. Further a deep discount on something that will disappear in January won't hurt Apple at all when it comes to marketing the new replacement product. Finally that deep discount will draw traffic into the stores all season long.
Dave
____________
Are the BF discounts available for education pricing as well?
doubt it. it is typical with all retail companies that you can get sale pricing OR special pricing (ie, corporate, student, etc) but not both.
also, since there is the whole incentive thing with the iphone I doubt that they would do anything on the price for it. the best folks might get is a gift with or purchase with promo for that day/weekend. like "buy an iphone and get a free $25 gift card to the itunes store" (free car charger/accessory pack)
when will the financial analysts realize that apple is run by steve jobs, not your run of the mill harvard mba graduate (yes those those guys that got us into this credit crisis).
the day that these analysts actually have it correct is the day that their own kind is at the helm of apple running it (into the ground). Any tech company with too many wall street types is doomed.
When Toyota chairman Hiroshi Okuda was asked why GM is losing, he said: “GM hires the best MBAs, but Toyota hires the best engineers.” This applies to Google / Yahoo now.
And the different between Apple and Google is probably the number of MFAs they hire.
MFAs + Engineers = success
MBAs + more MBAs = FAIL
the only time these analysts are ever right is when the company they are analyzing makes most of there money below the line in the form of financial revenues, because that's the only time when similar minds are running the company.