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The Apple Core

Jason D. O'Grady & David Morgenstern

Apple’s problem: selling Macs

By | December 16, 2010, 1:00am PST

Summary: Dario D. makes a case for why iMac pricing needs to be reduced theorizing that most of the world is convinced to try a Mac, but that few people can actually justify one.

Dario D. wrote a good post about Apple’s current problem: selling Macs.

In it he makes a good case for why iMac pricing needs to be reduced and theorizes that most of the world is convinced to try a Mac, but that few people can actually justify one - when significantly cheaper PC options exist.

He cites a study showing the average PC is now $550 (while the average Mac is $1,543) and points out that you can build a triple-screen gaming/graphics PC that can handle any modern game, for $983 — which is less expensive than the cheapest iMac (excluding the Mac Mini).

The age-old counter to the price argument is that you get what you pay for — and total cost of ownership. Apple gave up the price game long ago, calling low-cost PCs “junk” and a “race to the bottom.”

It simply boils down to some subjective factors, your OS preference (which is largely a function of experience) and your price sensitivity. Apple won’t have a mass-market desktop computer in the short term, because it doesn’t want to. However Apple’s extremely popular iOS is dominant in the mobile space.

If Apple truly wanted to dominate the desktop (and I’m not convinced that it does) it could take a page out of the Chrome OS playbook and release a low-cost desktop and notebook running iOS that uses MobileMe for cloud storage.

Macs are definitely worth the additional cost, but then again, I’m biased.

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Topics

Jason O'Grady is a journalist and author specializing in mobile technology. He has published six books on Apple and mobile gadgets and his PowerPage blog has been publishing for over 15 years.

Disclosure

Jason D. O'Grady

Jason D. O'Grady is the creator and editor of O'Grady's PowerPage, which has been publishing mobile technology news since 1995. He maintains an advertising relationship with the following legacy advertisers on the PowerPage:

  • Amazon Associates
  • Google Adsense
  • Tekserve
  • Advertising on the PowerPage is brokered by a third-party agency (BackBeat Media) and he recuses himself from these negotiations.

Biography

Jason D. O'Grady

Jason D. O'Grady developed an affinity for Apple computers after using the original Lisa, and this affinity turned into a bona-fide obsession when he got the original 128 KB Macintosh in 1984.

He started writing one of the first Web sites about Apple (O'Grady's PowerPage) in 1995 and is considered to be one of the fathers of blogging. He has been a frequent speaker at the Macworld Expo conference and a member of the conference faculty. He also co-founded the first dedicated PowerBook User Group (PPUG) in the United States.

After winning a major legal battle with Apple in 2006, he set the precedent that independent journalists are entitled to the same protections under the First Amendment as members of the mainstream media.

O'Grady is the author of The Nexus One Pocket Guide, The Droid Pocket Guide, The Google Phone Pocket Guide, and The Garmin nuvi Pocket Guide (Peachpit Press), the author of Corporations That Changed the World: Apple Inc. (Greenwood Press), and a contributor to The Mac Bible (Peachpit Press). In addition, he has contributed to numerous Mac publications over the years, including MacWEEK, Macworld, and MacPower (Japan).

When he's not writing about Apple for ZDNet at The Apple Core, he enjoys spending time with his family in New Jersey.

Talkback Most Recent of 282 Talkback(s)

  • A Mac is not a tool to get a job done...
    but a mere luxury that we don't need...to get the job done.
    ZDNet Gravatar
    cym104
    16th Dec 2010
  • RE: Apples problem: selling Macs
    @cym104 I worked for a large banking company about 3 years ago and their entire marketing and advertising departments ALL had Macs... and all networked into the same network as the Windows PCs the rest of the bank uses for day to day operations. If they were indeed the luxury item that is not needed as you claim why would this bank - which is notorious internally for not spending any more money than they have to - have all of these Macs? I asked that same question to a few people in those departments and I was told that the software for their work was far better and ran better on Macs. So for them it does indeed sound like a Mac is a tool to get the job done.
    ZDNet Gravatar
    Pete "athynz" Athens
    16th Dec 2010
  • RE: Apples problem: selling Macs
    yes, but those days are passed now, a quad core PC will run Photoshop, Quark etc. and the kind of software marketers like to use just as well as a MAC. Most likely they had macs, because their employees all knew macs better, and that advantage is from the 1990s, its starting to run pretty thin now. There is nothing you can do on a mac that you can't do on a PC.
    ZDNet Gravatar
    info@...
    16th Dec 2010
  • RE: Apples problem: selling Macs
    @athynz If they were indeed the luxury item that is not needed as you claim why would this bank - which is notorious internally for not spending any more money than they have to - have all of these Macs?

    Huh? Banks... Not spending money? Never the less money they don't have? Really... Well maybe not now so much, but before the big bailout... yagottabekidding
    ZDNet Gravatar
    Badgered
    16th Dec 2010
  • Your logic is flawed.
    @athynz, my brother, a personal trainer, eats Big Macs. Clearly eating big macs is how to stay fit, and be a personal trainer.

    Please name the bank so that we know which bank is using unprotected Macs!
    ZDNet Gravatar
    man_strosity
    16th Dec 2010
  • RE: Apples problem: selling Macs
    @athynz Why didn't the rest of the bank have macs then? Marketing departments do graphics work, and that's considered to be best done on macs.
    ZDNet Gravatar
    snoop0x7b
    16th Dec 2010
  • RE: Apples problem: selling Macs
    @info@... Yeah, 'cos Quark runs so well on Windows... Additionally, AppleScript allows you to streamline your workflow in ways just not possible on Windows.

    Sure there are plenty of things PCs do just fine, but the Mac still has advantages - especially for creative workflow. Computers don't cost much compared to people - even a small increase in productivity is worth quite a lot for the purchase of a machine that'll be around at least three years.
    ZDNet Gravatar
    jeremychappell
    16th Dec 2010
  • Because they are not smart
    @athynz There is not one thing a Mac can do that a PC cannot... There are however, several of my favorite Photoshop plugins that do not run on the Mac.
    ZDNet Gravatar
    Peter Perry
    16th Dec 2010
  • It's the OS
    @info@ It's not so much anymore about the apps that run on platforms but about platform stability. I can let my Mac run for days without need for a reboot. Try that on Windows.

    And since many apps these days run on the web you're not tied to a OS anymore, but you want an OS to keep the browser running and not crashing.

    I still own a G5 from 5 years ago on which I do most of my stuff. Talking about TCO.
    ZDNet Gravatar
    invenio
    16th Dec 2010
  • RE: Apples problem: selling Macs
    @invenio " I can let my Mac run for days without need for a reboot. Try that on Windows."

    I did try that with windows, i have win 2003 servers that have not been shutdown in months. My desktop computer running windows 7 runs for weeks at a time without reboot.
    ZDNet Gravatar
    devilmaster
    17th Dec 2010
  • Re: It's the OS
    @invenio

    "I can let my Mac run for days without need for a reboot. Try that on Windows."

    Ok I will..oh wait I already do and have been for many years. Aside from reboots after installing software or patches that require a reboot my computer is on 24/7 and only put into sleep mode manually to conserve energy. Essentially I may reboot the computer twice a month?

    As far as your G5 goes my Cousin has my old computer that is over 6 years old and aside from one Hard Drive failure and a reformat of Windows when I gave it to my cousin it has been running like a champ and still does everything he needs it to do.

    Basically I fail to see your point.
    ZDNet Gravatar
    bobiroc
    17th Dec 2010
  • RE: Apples problem: selling Macs
    @athynz That is quite funny... three years ago most of the Adobe products had to run in emulations because of the intel move by Apple. During this time the entire CS Suite ran faster on PC's equiped for the job in comparison to the Mac. I agree info@..., in the graphics market there has been some historic presedence set by Mac users... this is why they werte useing Macs three years ago. Now, is a different story. All of the CS suites are made for the OS X platform. No question that they run these programs as good as their PC conterpart.
    ZDNet Gravatar
    apetti
    17th Dec 2010
  • RE: Apples problem: selling Macs
    it was very interesting to read this pages.
    I want to quote your post in my blog. It can.. video dizi izle
    ZDNet Gravatar
    basvideoizle
    19th Dec 2010
  • So is a BMW
    @cym104 ... Hyundai is much cheaper. Why aren't the streets of upscale communities lined with Hyundais?
    ZDNet Gravatar
    HollywoodDog
    16th Dec 2010
  • RE: Apples problem: selling Macs
    @HollywoodDog

    Because like fancy luxury cars many view Macs as a status symbol. Sure sometimes they may offer unique features and fancy design but it doesn't mean they always do the task or perform any better than a nice Chevrolet or a Ford.
    ZDNet Gravatar
    bobiroc
    16th Dec 2010

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