Apple's consumer-level hardware (i.e., excluding the Mac Pro) compares unfavorably to that of other manufacturers, especially when price is considered. The only justification for calling a Mac a "premium" product is OS X, and despite that it is getting harder to make a case for the whole package. When Windows 7 comes out, Apple will find much stiffer competition from the Windows world.
It's about marginal yet noticeably more affordable Macs on par with the company's current standards. It could be as simple as taking the current models and lopping $100 - $150 off in a few months.
This is so tricky for Apple. You say they are not going to make cheap PCs, just more affordable ones. So that could mean a cheaper model of the MacBook, or waiting until parts drop to lower the prices.
If it's the latter they run the risk of future profit loses as these known drops in component and manufacturing pricing are factored in. It's easy to drop a price but not so easy to increase it when you revision the model.
If it's the former, a cheaper MacBook would go for to increasing or at least helping to maintain marketshare but profits could drop, even if the profit margin is the same for the more expensive model.
Then again, losing sales in a fearful economy isn't good either. Such a tricky decision for any company to make.
Seriously, the article didn't say they were bringing cheaper parts to the higher end computers so get over it. There's absolutely no reason to get worried over Apple trying to become affordable to more people.
As a stockholder I always worry about companies making less net profit per unit.
Why not offer a 4 or 5 payment option like several of the 'home networks' do? Personally, I would pay 3 or 4 hundred a month for 4 or 5 months to have an updated Mac. Bet a bunch of them would be sold this way!
Think about it - might work!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I agree, although Windows 7 isnt as good as OSX it's still very solid and a step in the right direction for MS. Apple wont have alot of ammo to fire off on the Windows OS front but will probably still say "Hey our stuff looks prettier at least".
I agree, although Windows 7 isnt as good as OSX it's still very solid and a step in the right direction for MS. Apple wont have alot of ammo to fire off on the Windows OS front but will probably still say "Hey our stuff looks prettier at least".
Small companies around me are switching from Apple to netbooks and cloudcomputing. There is a change and Apple is about to loose some important customers.
Yes, we want one or three models priced from $500 to $800, but NOT if Apple only want to give us some crappy devices.
I have been a major Mac-customer since 1986, I have lost one time before when my company trown out 150 Macs due to a much cheaper PC on the market (1990's).
There are many UI aspects, included software, and all around convenience that makes Mac OS X "better" than Windows 7 in many ways. Of course, that is an opinion, but I think it's pretty fair.
Kinda like iTunes audio isn't nearly as good as a CD and didn't have the case notes, etc., but it was convenient and "good enough" for the average user. I think Windows 7 is a solid step over XP and Vista and more importantly it is "good enough" for the average user and convenient as people are familiar with Windows and can buy a much cheaper machine than Apple will sell, which supports the majoroty of PC users. MS did right by this version. I wouldn't trade it for my Mac but it's worth telling people to not stay with XP anymore.
Small companies around me are switching from Apple to netbooks and cloudcomputing. There is a change and Apple is about to loose some important customers.
This is most likely the result of stronger dollar. As Kasper said, expect discount between $100 and $150, which is not new since Apples educational discount are between $100 and $200.
I've known some people who ordered their Macs from Apple.com and claimed to be student while they're not. They still got the educational discount without anyone asking.
I'd like to echo other's sentiments here and state that cheaper does not mean lower quality. What I feel Apple should do is mainly focus on their Macbook line.
Lower the price of the Unibody MacBook 13" to $999.
Introduce a 15" MacBook with NVIDIA integrated graphics, 2.26GHz CPU for $1499
Introduce a 17" MacBook with NVIDIA integrated graphics, 2.4GHz CPU and 1680x1050 LCD for $1999
And a midrange desktop.
integrated graphics is a joke at $1500 and a super rip off at $2000.
even more so then you can get laptops with 17" mate 2.56 and ati 4850 512 + 4gb system ram for $1600
It does seem a little strange that Apple refuses to sell lower performing hardware at lower prices.
yes but does Microsoft sell their wares by having trained sales staff, training staff, tech support. can you walk into an Windows store and spend an hour asking questions and then walk out without buying a thing and no grief. do you get to deal with staff that doesn't pull tricks like suddenly being out of stock on the item you want after you refuse to buy the extended warranty.
some folks find these kinds of things worth that 'apple tax'
Quote:
Apple consistently sells premium priced computers with entry level graphics.
for entry level graphics, looks pretty good. certainly good enough for many folks outside of the tech geeks that hang out on forums like this talking like what they want is what the other 99.9% of the world wants or needs
When Apple has tried this in the past, they've always done it without compromising their ultra high margins... if they were to make a $500 machine, it would be made from recycled dog poo in order to keep the margin untouched. Given how they cut corners on the high-end machines, I dread to think what a cheap Mac would feature. Celeron? Atom? Refurbished screens from 5 year old Dells? Whatever it is, there will be a major catch.
By refusing to let anyone else build chipsets for Intel Nehalem processors, Intel is trying to hold back their competitors long enough to get graphics embedded into all their processors. If they succeed with that strategy Intel will own both the chipset and entry level graphics market. nVidia and ATI will be left with only the mid-high end graphics market that they already own.
.
AMD / ATI will still have the amd cpu low end video market and there is no way that the us gov will let amd die and intel have 100% of the market.
Comments
It's about marginal yet noticeably more affordable Macs on par with the company's current standards. It could be as simple as taking the current models and lopping $100 - $150 off in a few months.
This is so tricky for Apple. You say they are not going to make cheap PCs, just more affordable ones. So that could mean a cheaper model of the MacBook, or waiting until parts drop to lower the prices.
If it's the latter they run the risk of future profit loses as these known drops in component and manufacturing pricing are factored in. It's easy to drop a price but not so easy to increase it when you revision the model.
If it's the former, a cheaper MacBook would go for to increasing or at least helping to maintain marketshare but profits could drop, even if the profit margin is the same for the more expensive model.
Then again, losing sales in a fearful economy isn't good either. Such a tricky decision for any company to make.
Seriously, the article didn't say they were bringing cheaper parts to the higher end computers so get over it. There's absolutely no reason to get worried over Apple trying to become affordable to more people.
As a stockholder I always worry about companies making less net profit per unit.
Think about it - might work!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
As a stockholder I always worry about companies making less net profit per unit.
good point
I agree, although Windows 7 isnt as good as OSX it's still very solid and a step in the right direction for MS. Apple wont have alot of ammo to fire off on the Windows OS front but will probably still say "Hey our stuff looks prettier at least".
What about it isn't as good?
Yes, we want one or three models priced from $500 to $800, but NOT if Apple only want to give us some crappy devices.
I have been a major Mac-customer since 1986, I have lost one time before when my company trown out 150 Macs due to a much cheaper PC on the market (1990's).
I am about to do it again!
Wake up Apple!
What about it isn't as good?
They are going to recover with Windows 7. Even the hardware makers are waiting for it.
What I mea isn that OSX looks better when you come from Vista. it is a little less attractive when you have tried Windows 7.
What about it isn't as good?
There are many UI aspects, included software, and all around convenience that makes Mac OS X "better" than Windows 7 in many ways. Of course, that is an opinion, but I think it's pretty fair.
Kinda like iTunes audio isn't nearly as good as a CD and didn't have the case notes, etc., but it was convenient and "good enough" for the average user. I think Windows 7 is a solid step over XP and Vista and more importantly it is "good enough" for the average user and convenient as people are familiar with Windows and can buy a much cheaper machine than Apple will sell, which supports the majoroty of PC users. MS did right by this version. I wouldn't trade it for my Mac but it's worth telling people to not stay with XP anymore.
Small companies around me are switching from Apple to netbooks and cloudcomputing. There is a change and Apple is about to loose some important customers.
image: http://www.globalnerdy.com/wordpress...g_at_cloud.jpg
I'm amazed at how the mind works. You remembered that 2 second part of a Simpsons episode. I remember it, too, but only when I saw the pic.
I've known some people who ordered their Macs from Apple.com and claimed to be student while they're not. They still got the educational discount without anyone asking.
I'd like to echo other's sentiments here and state that cheaper does not mean lower quality. What I feel Apple should do is mainly focus on their Macbook line.
Lower the price of the Unibody MacBook 13" to $999.
Introduce a 15" MacBook with NVIDIA integrated graphics, 2.26GHz CPU for $1499
Introduce a 17" MacBook with NVIDIA integrated graphics, 2.4GHz CPU and 1680x1050 LCD for $1999
And a midrange desktop.
integrated graphics is a joke at $1500 and a super rip off at $2000.
even more so then you can get laptops with 17" mate 2.56 and ati 4850 512 + 4gb system ram for $1600
It does seem a little strange that Apple refuses to sell lower performing hardware at lower prices.
yes but does Microsoft sell their wares by having trained sales staff, training staff, tech support. can you walk into an Windows store and spend an hour asking questions and then walk out without buying a thing and no grief. do you get to deal with staff that doesn't pull tricks like suddenly being out of stock on the item you want after you refuse to buy the extended warranty.
some folks find these kinds of things worth that 'apple tax'
Apple consistently sells premium priced computers with entry level graphics.
for entry level graphics, looks pretty good. certainly good enough for many folks outside of the tech geeks that hang out on forums like this talking like what they want is what the other 99.9% of the world wants or needs
When Apple has tried this in the past, they've always done it without compromising their ultra high margins... if they were to make a $500 machine, it would be made from recycled dog poo in order to keep the margin untouched. Given how they cut corners on the high-end machines, I dread to think what a cheap Mac would feature. Celeron? Atom? Refurbished screens from 5 year old Dells? Whatever it is, there will be a major catch.
By refusing to let anyone else build chipsets for Intel Nehalem processors, Intel is trying to hold back their competitors long enough to get graphics embedded into all their processors. If they succeed with that strategy Intel will own both the chipset and entry level graphics market. nVidia and ATI will be left with only the mid-high end graphics market that they already own.
.
AMD / ATI will still have the amd cpu low end video market and there is no way that the us gov will let amd die and intel have 100% of the market.