The $399 question?

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  • Reply 41 of 172
    nebrienebrie Posts: 483member
    [quote]Originally posted by Stagflation Steve:

    <strong>



    Would you mind notifying my customers of that?

    The cheap PC's are flying off the shelves, I just sold 40 of these to a customer that was up to this point all Mac,



    <a href="http://www.compaq.com/products/desktops/d315mct/"; target="_blank">http://www.compaq.com/products/desktops/d315mct/</a>;



    I am selling these as fast as they are arriving, and it beats the shit out of the iMac and eMac, and of about 70 sold, only two have been defective and one of those was damaged by UPS.



    Also nice, is that system has a higher retailer margin than the iMac, eMac or iBook and is only a few bucks less than the margin on the low end "Concord" G4.



    You also mention that Dell is the only profitable PC maker at the moment, what does Dell sell?



    Cheap PC's,



    If Dell is profitable that strongly suggests people are buying cheap PC's,



    I am really glad that cheap high quality PC's are avaiable, it lets me hold onto my Macintosh customers when they switch to Windows.



    And more are switching now than ever before,</strong><hr></blockquote>



    Geez, HP's PC division is subsidized by the rest of the company and they still can't match Dell's prices.
  • Reply 42 of 172
    snoopysnoopy Posts: 1,901member
    [quote]Originally posted by Stagflation Steve:

    <strong>



    . . . The cheap PC's are flying off the shelves, I just sold 40 of these to a customer that was up to this point all Mac . . .



    </strong><hr></blockquote>



    I can believe that. Those I know who have recently purchased a computer, it has been low cost Windows PCs, almost 100 percent. Even a computer phobic individual bought one. I suggest a the lowest cost iMac, old model, but it was a cheap Windows box that made the sale. Also, I know some who own older Macs and are wanting a new computer. I am hearing comments like, "Boy, those PCs are really cheap now," and "I think the PCs have really improved a lot." I think they are preparing me for the time they will switch.



    It's not just home computers. Business and schools often have hundreds of good monitors and want a low cost option for upgrading computers. The business and school examples, and everyone I know personally buying or planning to buy, none of them need a digital hub or game capable video. A headless Mac like that with VGA connector could be pretty inexpensive.



    If a low cost computer like this does not hold up the Macintosh image, Apple could give it another brand name. It could sell for a little more than the equivalent Windows PC if it was attractive and marketed as better quality than the competition.
  • Reply 43 of 172
    Yes and No,



    HP offers systems that are price competitive to contemporary Dell's.



    Esspecially their new Athlon systems, however Dell is only exposed to a single sector of the market, HP is exposed to the whole thing and has much greater overhead than Dell does. So when sales of their monster hardware is depressed, they can't really cross-sub their lower end hardware.
  • Reply 44 of 172
    majormattmajormatt Posts: 1,077member
    These low-price PCs sound great! Too bad they run windows...
  • Reply 45 of 172
    snoopysnoopy Posts: 1,901member
    After more thought, I believe there may be a lot of switching both ways, so Apple's market share does not reflect the new Mac buyers. Obviously the iMac and maybe the eMac too are attracting new buyers, but Apple has nothing else to offer those who are satisfied with much less capability and performance. So for this low end market segment, it means a 500 dollar premium to buy a new model Mac, and very few do. Apple may soon be selling to just a few niche markets, which could seriously hurt the Mac OS X platform. Apple needs constant, adequate development of application software for the long run, and only ubiquitous platforms with high enough market share are guaranteed this.



    An important point that is overlooked in discussion of cheaper computers is the fact that Apple could sell a low cost model at a premium. If Apple shoots for just 10 percent of the low cost market as a goal, they could design such a box. If the box is exceptionally stylish and good looking, people will want it. (Style and good looks do not have to cost much at all.) Next, Apple needs to give them a logical reason to pay a little more. Even though people will want the cheap Mac rather than a comparable Windows PC, they need a reason to justify spending more. Nobody wants to tell their friends they paid 200 bucks more just for cool looks. So, a 599 dollar Mac should sell like hot cakes. A legitimate concern is whether it severely hurts sales of the iMac and eMac? Not if Apple does it right, by finding out what the low cost market wants, and giving them just that, not much more. Apple can limit the low cost model intentionally, so it does not cut into sales of better models. Sure it will still take a few sales, but it will open many new markets, and help regain the historic educational market as well.
  • Reply 46 of 172
    defiantdefiant Posts: 4,876member
    [quote]Originally posted by hotboxd:

    <strong>Well how do these newly announced price drops on the iBook fit into this? The iBook is arguably Apples most price competitive product, and they just cut off $200 from all the models plus a modest speed bump. Are they gonna start doing this to all their product lines?</strong><hr></blockquote>



    do we have to bring the ibook into every discussion ? <img src="graemlins/oyvey.gif" border="0" alt="[No]" />
  • Reply 47 of 172
    the number of switchers I am seeing come into the store is almost zero, there is no AppleStore in the region and we are the only macdealer with a retail storefront,



    When the odd curious PC user comes into the store, or PC customer has a look at the Mac, they just look at the price and sneer.



    The only real switcher group I think Apple has a reasonable chance with are the "Camcorder Dad's"



    You know, the men who's kid can't drink a glass of milk without daddy there to document the experiance, they like iMovie and iDVD and live for the oppertunity to imortalize embarassing moments that they can show their children's dates down the road.



    Otherwise, I just don't see it happening, this quarter for the first time since 1997 I am going to get more revenue from PC sales than Mac sales.



    Today the only Mac I bring into inventory is the iBook, everything else is special order because I don't want to get loaded down with crap no-one wants.



    [ 11-03-2002: Message edited by: Stagflation Steve ]</p>
  • Reply 48 of 172
    nebrienebrie Posts: 483member
    [quote]Originally posted by Stagflation Steve:

    <strong>the number of switchers I am seeing come into the store is almost zero, there is no AppleStore in the region and we are the only macdealer with a retail storefront,



    When the odd curious PC user comes into the store, or PC customer has a look at the Mac, they just look at the price and sneer.



    The only real switcher group I think Apple has a reasonable chance with are the "Camcorder Dad's"



    You know, the men who's kid can't drink a glass of milk without daddy there to document the experiance, they like iMovie and iDVD and live for the oppertunity to imortalize embarassing moments that they can show their children's dates down the road.



    Otherwise, I just don't see it happening, this quarter for the first time since 1997 I am going to get more revenue from PC sales than Mac sales.



    Today the only Mac I bring into inventory is the iBook, everything else is special order because I don't want to get loaded down with crap no-one wants.



    [ 11-03-2002: Message edited by: Stagflation Steve ]</strong><hr></blockquote>



    Good for you. Did you know George W. Bush, The Queen of England, and the Keebler Elves are actually one person? Yep. You learn a lot from the internet.
  • Reply 49 of 172
    [quote]Originally posted by Stagflation Steve:

    <strong>



    Would you mind notifying my customers of that?

    The cheap PC's are flying off the shelves, I just sold 40 of these to a customer that was up to this point all Mac,



    <a href="http://www.compaq.com/products/desktops/d315mct/"; target="_blank">http://www.compaq.com/products/desktops/d315mct/</a>;



    I am selling these as fast as they are arriving, and it beats the shit out of the iMac and eMac, and of about 70 sold, only two have been defective and one of those was damaged by UPS.



    Also nice, is that system has a higher retailer margin than the iMac, eMac or iBook and is only a few bucks less than the margin on the low end "Concord" G4.



    You also mention that Dell is the only profitable PC maker at the moment, what does Dell sell?



    Cheap PC's,



    If Dell is profitable that strongly suggests people are buying cheap PC's,



    I am really glad that cheap high quality PC's are avaiable, it lets me hold onto my Macintosh customers when they switch to Windows.



    And more are switching now than ever before,</strong><hr></blockquote>



    So your customer bought 40 pc's @ $399, plus bought monitors, and also bought all new software since they only had Mac software....



    If Apple is profitable, it strongly suggests people are buying expensive Mac's!



    And I suppose your clientelle is some large graphics house that has seen the light and is doing on their imaging on $399 pc's with 15" screens.... Sure $399 PCs (plus monitor plus having to use windoze) are okay for some people. But I pity them.



    Hey Stagflation - give us a link to your business so we can send our PC friends to you. Plus with your business going so great, we may want to buy stock in it!



    [ 11-03-2002: Message edited by: jwdawso ]</p>
  • Reply 49 of 172
    [quote]Originally posted by MajorMatt:

    <strong>These low-price PCs sound great! Too bad they run windows...</strong><hr></blockquote>



    That OSX sounds great! Too bad they run motorola....
  • Reply 51 of 172
    [quote]Originally posted by jwdawso:

    <strong>



    So your customer bought 40 pc's @ $399, plus bought monitors, and also bought all new software since they only had Mac software....



    If Apple is profitable, it strongly suggests people are buying expensive Mac's!



    And I suppose your clientelle is some large graphics house that has seen the light and is doing on their imaging on $399 pc's with 15" screens.... Sure $399 PCs (plus monitor plus having to use windoze) are okay for some people. But I pity them.</strong><hr></blockquote>



    Our department just bought over 350 Compaq Evo's, but we aren't some fancy graphics house. Just a lowely hospital.
  • Reply 52 of 172
    [quote]Originally posted by jwdawso:

    <strong>So your customer bought 40 pc's @ $399, plus bought monitors, and also bought all new software since they only had Mac software....

    </strong><hr></blockquote>



    They were $649 in the configeration they bought them in, they bought Compaqs, they re-used their existing Apple monitors and they migrated some of their Macintosh licenses to Windows. You don't have to buy all new software when you switch, most software vendors offer very inexpensive cross-overs,



    [quote]Originally posted by jwdawso:

    <strong>If Apple is profitable, it strongly suggests people are buying expensive Mac's!</strong><hr></blockquote>



    They aren't profitable dumbass,



    [quote]Originally posted by jwdawso:

    <strong>And I suppose your clientelle is some large graphics house that has seen the light and is doing on their imaging on $399 pc's with 15" screens.... Sure $399 PCs (plus monitor plus having to use windoze) are okay for some people. But I pity them.</strong><hr></blockquote>



    The customer that bought 40 Compaq's is a magazine, and I already told you they didn't buy $399 Gateways, and they are using the 17" Apple monitors I sold them in 1998



    [quote]Originally posted by jwdawso:

    <strong>Hey Stagflation - give us a link to your business so we can send our PC friends to you. Plus with your business going so great, we may want to buy stock in it!

    </strong><hr></blockquote>



    I am an Apple reseller, this is a forum that is monitored by Apple in which I am trashing Apple, do you seriously think I am going to say who I am?
  • Reply 53 of 172
    jlljll Posts: 2,713member
    [quote]Originally posted by Stagflation Steve:

    <strong>They aren't profitable?</strong><hr></blockquote>



    They are.



    Excluding non-recurring items, Apple?s net profit was $7 million.
  • Reply 54 of 172
    Only in the world of enronomics, if Apple reported that as a profit Steveo would be doing the perp-walk
  • Reply 55 of 172
    jlljll Posts: 2,713member
    [quote]Originally posted by Stagflation Steve:

    <strong>Only in the world of enronomics, if Apple reported that as a profit Steveo would be doing the perp-walk</strong><hr></blockquote>



    When looking at the part of Apple that makes and sells Macs, they are making a profit!!!!



    They lost money because of bad investments.



    Why do you think that AAPL didn't go down after the announcement?
  • Reply 56 of 172
    jwdawsojwdawso Posts: 389member
    [quote]Originally posted by Stagflation Steve:

    <strong>Only in the world of enronomics, if Apple reported that as a profit Steveo would be doing the perp-walk</strong><hr></blockquote>



    I hate it when facts get in the way too!



    Stagflation - you have no creditability. Why should we believe a word you write? How convenient you can't tell us about your store. Have you seen Moki's posts? He states plainly who he is, and offers his viewpoints which includes criticisms. Moki has respect. I suggest get a new login name, be open about who you are, and contribute your insights without trashing Apple and calling people names (dumb...). Obviously a retailer has a lot of insights most of us don't have.
  • Reply 57 of 172
    The facts aren't getting in the way of anything, Apple is losing money, sales are virtually non-existant and marketshare is eroding



    Because Apple goes after re-sellers it feels are hostile, and believe it or not, my business is more valuble to me than my credibility on an online message board.



    Apple is dying, I have little to say about Apple these days that wouldn't get Apple on my case.
  • Reply 58 of 172
    snoopysnoopy Posts: 1,901member
    I happen to appreciate what Stagflation Steve has been reporting, and I cannot understand why it is not accepted as likely data from a business owner. Personally, it sounds credible. He obviously is not 'anti' Mac, since the store has been selling Macs for a long time now. He is reporting news we don't like to hear, which is no reason to get on his case. Just be thankful it is not like that all over. I am sure there are stores doing well too. I hope Apple really is listening, or maybe that should be reading.



    What I failed to point out in my two previous posts is that without a low cost model of the Mac, very few business or other ventures can implement an 'All Mac' solution. So, as long as they must use a significant number of Windows PCs, it makes a lot of sense to most people to go with all one platform. This is the mentality Apple has been struggling with for a long, and it is not about to change anytime soon. The best way to overcome it is to offer all models a customer needs. Apple needs to offer a simple, economy Mac without a monitor.
  • Reply 59 of 172
    Sony will be releasing the next version of the Playstation around 2004/2005....this version should contain their codeveloped Cell Chip (IBM/Toshiba/Apple)...This version of the playstation (or whatever it ends up being called) will be much more than a game station....it will be a gateway to the net, have tivo like capabilities, act as a home server for media and who knows what else...



    Microsoft will be releasing the Homestation most likely before this...the Homestation will be much more pc-like than the x-box (actually the x-box was originally planned to be more like a cutdown pc but no one outside of microsoft would go on board)



    What if Sony and Apple got together and released a PC upgrade to the Playstion III which would allow it to function as a basic computer. It would include a wireless keyboard, OS, Apple iApps....Apple would receive a flat fee for each pc kit sold....Sony doesn't make money on the hardware during the first couple of years of introduction so Apple would not be loosing anything from this and they would expand market share and make a good profit from OS X liscencing and upgrades to the kit and iApps..



    While Apple sells less than 5 million computers per year... Sony sells like 20 million playstations (too lazy too look up the exact #)



    Let's say only %20 opt for the PC upgrade kit... and apple makes $50 profit perkit:



    Thats $200 million cash for Apple...plus Apple has just doubled it's market share to %10+



    Also IBM/Sony has suggested that the Cell chip could allow multiple Cell chips to work together to form a distributed network...Apple would now have access to this if it ever works out....(they also mentioned some form of network acceleration going into the Cell as well as Power5 so perhaps having them on both ends might have some interesting effects on speeding up network transfers) Also Sony and Toshiba will use Cell processors for anything from pda's, to cams, and tv's....So porting to this proccecor might be a segway for apple to get in consumer and pro electronics as well...Also because they are based on the same cell chip...Sony/Toshia/Apple products might be able to work together to speed up processing power just by being on home or office networks (ie...add a playstion 3 or a cam with a cell chip and it adds to the processing power of the computer on the network)
  • Reply 60 of 172
    ed m.ed m. Posts: 222member
    [[[Our department just bought over 350 Compaq Evo's, but we aren't some fancy graphics house. Just a lowely hospital. ]]]



    Good Lord, ot the medical profession! Aren't they running AWAY from Microsoft wares (especially Windows) because of the liability associated with the confidentiality of people's medical records?? The banking industry isn't too keen on Windows either.



    <a href="http://www.macobserver.com/article/2002/10/23.13.shtml"; target="_blank">http://www.macobserver.com/article/2002/10/23.13.shtml</a>;



    <a href="http://www.macobserver.com/article/2002/10/24.6.shtml"; target="_blank">http://www.macobserver.com/article/2002/10/24.6.shtml</a>;



    <a href="http://www.macobserver.com/article/2002/10/31.12.shtml"; target="_blank">http://www.macobserver.com/article/2002/10/31.12.shtml</a>;





    [[[They aren't profitable dumbass, ]]]



    They certainly are... Go do you r homework and check the facts. OH and



    [[[Only in the world of enronomics, if Apple reported that as a profit Steveo would be doing the perp-walk]]]



    Oh yeah and Mikey Dull would have had a 1.6 billion dollar LOSS if they hadn't sudden;y decided to change the way they report their financials at the last minute. Again, check your facts...



    <a href="http://www.puaf.umd.edu/courses/puaf670/NYT_Dell_09-22-02.pdf"; target="_blank">http://www.puaf.umd.edu/courses/puaf670/NYT_Dell_09-22-02.pdf</a>\t



    <a href="http://www.macobserver.com/stockwatch/2002/09/29.1.shtml"; target="_blank">http://www.macobserver.com/stockwatch/2002/09/29.1.shtml</a>;



    Oh, and aren't you feeling just a little slimy for selling those poor customers a computer from a company that doesn't really exist anymore? Just think, Apple's been around way before Compaq and now they can say they've witnessed the passing of Compaq. How ironic.



    [[[Apple is dying ]]]



    LOL! And how long have we been hearing this? You are a FOOL!



    How's that Gateway doing? How that Compaq? Oh that's right Compaq is already crapped-out and HP is on it's way too thanks to Dull





    Stagflation Steve is nothing but a troll. Apple has seen major companies come and major companies go... Don't feed the trolls people ;-)



    --

    Ed M.
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