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Apple may introduce cheaper Macs for market share

By | April 30, 2009, 12:14pm PDT

Summary: Apple may introduce cheaper computers in an attempt to grow its market share, according to sources of AppleInsider. “People familiar with the matter” say the move is an interim solution to combat the popularity of netbooks, cheap, underpowered computers for which the premium company has previously expressed disdain. Apple has been rumored to be preparing a [...]

Apple may introduce cheaper computers in an attempt to grow its market share, according to sources of AppleInsider.

“People familiar with the matter” say the move is an interim solution to combat the popularity of netbooks, cheap, underpowered computers for which the premium company has previously expressed disdain. Apple has been rumored to be preparing a web tablet.

According to the sources, Apple still has no interest in catering to the netbook market as it exists today. But the move may help the company in a difficult economic climate: Apple recently announced that Mac units contracted by 3 percent in the first quarter of 2009. According to AppleInsider, market research firm Gartner estimated that the company’s share of the U.S. PC market slipped 10 basis points to 7.4 percent.

The move is an atypical short-term move from the traditionally long-term company. The difficulty, of course, is managing its “premium” reputation with ubiquity and a lower price tag.

So what can consumers look forward to? AppleInsider says cheaper versions of the 13-inch MacBook (which starts at $1,299 for the latest generation) and iMac, both the most popular Macs in terms of sales.

Apple earlier this month quietly began offering educational institutions a 2GHz, 20-inch aluminum iMac for $899. So it’s certainly possible to offer cheaper, still-powerful systems and preserve the company’s comfortable margins.

AppleInsider reports that more affordable Macs could turn up as early as this spring.

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Topics

Apple Macintosh, Apple Inc., AppleInsider, Netbooks, Nettops & MIDs, Desktops, Hardware, Andrew Nusca

Andrew J. Nusca is editor of ZDNet and SmartPlanet.

Disclosure

Andrew Nusca

Andrew J. Nusca does not hold any investments in the technology companies he covers.

Biography

Andrew Nusca

Editor

Andrew J. Nusca is an editor for ZDNet and SmartPlanet. As a journalist based in New York City, he has written for Popular Mechanics and Men's Vogue and his byline has appeared in New York magazine, The Huffington Post, New York Daily News, Editor & Publisher, New York Press and many others. He also writes The Editorialiste, a media criticism blog.

He is a New York University graduate and former news editor and columnist of the Washington Square News. He is a graduate of the Columbia University Graduate School of Journalism. He has been named "Howard Kurtz, Jr." by film critic John Lichman despite having no relation to him. He lives in his native Philadelphia with his wife, cat and Boston Terrier.

Follow him on Twitter.

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Count what you want Apple fine, more errors as you misread marketshare data
Davewrite Updated - 2nd May 2009
iPod Touches and iPhones not computers?

Do you read all the things they are doing with Touches and iPhones,
for example the army is using them to do language translation, to
identify people, to do ballistic calculations, as biometric sensors, to
control remote vehicles, use them to coordinate and plan with GPS
mapping, etc,

And that's just the army. I won't bother to list multitude of things
others like doctors use them for.

So these are not computing devices? like I said you all just put your
own criteria for example you say "And unlike real computing devices,
you can't choose to change the OS or even run more than one App at
a time." From what i remember before Apple went to Intel or OsX you
couldn't run other OS on macs except the Mac OS. (some hacker
could do it but not off the shelf just like hackers can do stuff with
iphones as well). And in old days before advances like multi
threading you couldn't run more than one app at a time on computers.

So you're saying those millions of Mac Cxs, Mac IIs
etc weren't computers?

And on an iPhone you can run more than one app for natively installed
Apple Apps, you just can't do it for 3 rd parties (and this is only due to
memory limitations not OS, when battery and memory improves it'll
be possible) With Win 7 starter for netbooks you can only run 3 apps
so each have their own limitations. (but of course you'll accept Win 7
limits but not Apple's!)

My dictionary says Computer "Also called processor. an electronic
device designed to accept data, perform prescribed mathematical and
logical operations at high speed, and display the results of these
operations."

To me the iPod touch fulfills that.

The dictionary doesn't use any of your definitions!

You're just like in my aerospace example: guys years ago saying that
it's not an airplane because it's got no propellers so jets are out.

Go Google iPod Touch and iPhone Computing Platform and read the
articles.

But you say iPod Touch not a computer fine. It's pointless to argue as
you've got your own definition. Its just semantics.

(like years ago some football guy says to me when I was doing
Archery "shooting arrows, that's NOT a REAL sport!" Ok fine whatever)

And Apple doesn't care anyway as they keep making money.

And you keep on contending "The fact is that, despite Apple's
profitability overall, their mac line still managed to slip from nearly
10% market share to just 7.4%"

where do you get such stats?

Your OWN Garnter link if you look at the table shows Apple Q108 at
7.5, and Q109 at 7.4. That's a drop of 1% mainly due to netbooks (but
hey we don't count Touches!).

You spout at me Gartner but did you even read your own Gartner
data?

Maybe you got your 10% from different sources like NetApplications.
NetApplications a web metric firm puts Mac's market share higher but
they count them different than Gartner and you can't put them
together to make a point. NetApplications say Mac market share in
March 09 is 9.77, in April its 9.73. That's very close, nowhere the
drop you say.

See you can't put Net Applications near 10 and compare them to
Garntner's near 7.5!!! They are different polls!

Like I said errors in you interpretation of market share numbers.

and why this obsession with Mac market share?

Your title "my point is marketshare not profits", the whole point of a
company is profits! You can gain marketshare for example by
discounting stuff or even giving them for free, but for a company
what's the point unless you're making more profits? Like GM saying
we're selling so many millions of cars, we're the worlds largest car
maker etc. what the point? You're like a guy cheering GM "look at their
worldwide marketshare of cars!!" and I've shown the marketshare
numbers is not bad for apple, Gartner only 1% down from year ago,
Net Applications hardly dropping in last few months and that's
because of netbooks and not counting mobile Apple computing
devices.

Like I said Apple profits up 15%. Dell, Hp down. MS down 32%, so
difference between them is 47%.

Also your 'fears' that Apple is going to suffer. Hey like I said:

if Apple decides to build a netbook, technically there's no
problem but for the new high end mobile touch devices the PC guys
are in trouble.



View in thread
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Market Share
dheady@... 30th Apr 2009
Having Mac shipments drop only 3% in an over the year quarter when
the economy is in the tank is news. Of course the news isn't the drop,
it's the fact that in a soft economy it ONLY dropped 3%. I can hear the
old song of Apple's going to quit begin to ramp up in the wings.
Well, the fat lady hasn't sung yet.
As for the prospect of cheaper laptops with OS X and an Apple logo on
them, I suspect that is not where Apple is going. Macs have never
been a commodity box and most likely never will. My suspicion is that
Apple will redefine the 'notebook' genre much in the same way it
redefined mp3 players and the music industry. Oh yeah, and smart
phones.
Apple has, at least since he return of Jobs, pushed innovation in new
directions rather than follow it. I think one of the pushes for Snow
Leopard dropping support for PPCs is, not only are the PPCs getting
long in the tooth, but Snow Leopard will have a much smaller
footprint, enabling it to run on tablets, et al.
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-3% compared to last years quarter when they released the Mac Air
Davewrite Updated - 30th Apr 2009
As noted in the Apple's Quarterly conference call the year
to year comparison giving the 3% decline is distorted
because

1) last year in the same quarter they released the Macbook
Air which was big hit

2) this year no new mac release plus refreshed Mac line of
imacs, minis, pros came out very close to the end of the
quarter, if you count the weeks just after the end the
numbers are very different.

Also IDC says PC shipments in the same quarter went
down by 7%.

Another interesting aside is that Mac's Gross Margins went
up while the Average selling price of PCs went down 20%.
A 3% drop vs 7% drop in PCs and 20% drop in Pc selling
price.

Msft profits down 32% , Apple UP 15% (this includes
everything besides macs).

-----

All that said an increased lower price mac line might be good.
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How dare you remind people that a drop in sales
mlindl 30th Apr 2009
could mean an increase in profit? WHAT? That's heresy, you say.

My AAPL is up to $125 and I believe will jump to $150 before the year is
out. And Nokia, MSFT, IBM and others make the same claim?

I'll take a -3% in units +15% in profit ANY DAY OF THE WEEK. That's a
strong company that will just get stronger.
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A bit misleading
eMJayy 30th Apr 2009
Global PC sales fell 6.5% compared to 1Q08 according to Gartner, while US PC sales only fell 0.3% thanks to increasing netbook sales. Apple relies far more on the US market than any other computer maker so you might want to pay attention to the US figures and trends a bit more. Global sales figures being down 6.5% doesn't mean that the leading PC makers in the US are suffering. The figures actually show that most of the decline was felt by PC makers who were not among the top 5 global/US PC vendors and that most of the decline was seen in the third world markets. Interestingly, Gartner has Apple mac sales in the US as down 1.1% for the quarter. That means that the US mac sales declined more than the US market as a whole.

Furthermore, the mac has lost significant market share in the last year - essentially it's been a roller-coaster ride. In 1Q08, mac market share was about 7.5%; by 3Q08 it was over 9% and mac had overtaken Acer. Since then it has slipped back down to 7.4% this quarter and will continue to fall. Its competitors are gaining market share because of netbooks. Toshiba moved up 1.1% in market share over the last year and is now at 6.6% - not far behind Apple. Acer went from 9.1% to 13.6% market share in the last year. If the trends continue as is, Apple could be overtaken by Toshiba in less than 2 years.

Apple won't be able to gain back US market share in this financial climate, even if they drop prices a bit. The average selling price of PCs has gone down as you said, but that's actually bad news for Apple, not something to gloat about. It's actually the result of the expanding US market for netbooks. It indicates that the buying trend is moving further and further away from Apple's price point and offerings and will eventually impact their mac sales figures quite negatively in the next year or two.
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You say PC makers not hurting? Dell down 16% MS down 32% HP down 13%
Davewrite Updated - 1st May 2009
You say: "doesn't mean that the leading PC makers in the US are
suffering. "

Dell's figures announced in Feb:

"For the quarter, Dell reported revenue of $13.428 billion and profits
of 18 cents a share; the Street had expected $14.1 billion and 26
cents. Revenues were down 16% from the year-earlier quarter, and off
11.4% sequentially.

Gross margin in the quarter fell to 17.2%, from 18.8% in the October
quarter and 18.7% a year ago."

----
HP Feb 2009

"H.P posted a 13 percent decrease in earnings, at $1.85 billion, or 75
cents a share, down from $2.13 billion, or 80 cents a share, in the
year-earlier period"

"?The swing in the revenue outlook is particularly glaring and suggests
that, clearly, their business has slowed materially over the last two
months"

"In its most recent quarter, the first of the 2009 fiscal year, revenue
fell close to 20 percent year-over-year in three of its major
businesses "

----
Last quarter MS profits also down by a whopper 32%
4 out of 5 divisions losing revenues. MS blames it on lower PC sales.

-----
you said "doesn't mean that the leading PC makers in the US are
suffering. "

??????

NOT suffering? revenues down, gross margins down, lower than
analyst expectations for dell? HP down, lower than even their own
forecasts. PC makers laying off people.

Gross Margins dropped is also very significant as it impacts net
profits. If you gross revenue is down and then your gross margin is
lower than your net is even worse.

Apple's gross margins went up.



Your whole post is filled with similar factual errors and weird
interpretations and I won't bother wasting my time answering most of
them.

As for netbooks go and research gross margins and profitability.
Netbooks are lower function computers usually with a modified OS, if
consider iPhones and iPod touches as computing devices with
modified OSX which can also run apps (30 thousand of them) Apple
'computing' market-share is terrific. Saying Apple market share is
down because you count netbooks but not millions of iphones and
ipod touches is just word play "i count my computing devices but not
yours because I define what a computing device is".

Fact is Apple is doing fine. Compared to the others Apple is UP 15%
profits, Gross Margins Up, Cash position UP to 29 billion (vs 25 billion
MS). Like I said Apple in theory can buy Dell market cap 20 billion with
Cash. Apple had a solid Christmas quarter and last quarter was their
"best non-holiday quarter ever"
------
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Factual errors?
eMJayy 1st May 2009
http://www.gartner.com/it/page.jsp?id=939015
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The factual errors are you own statements not the Gartner report
Davewrite Updated - 1st May 2009
Your factual errors are when you say things like " PC guys aren't
suffering" rather than Gartner report.

I provided the links to show you their financial results that the PC
guys are suffering (especially compared to Apple with profits UP 15%),
then you give me the gartner thing, what does that show?

It's like you read ' xyz restaurant is selling a lot more 99 cent
cheeseburgers" Your reaction to that is like your reaction to the PC
guys "WOW that restaurant is doing REALLY GOOD!" you don't
understand that the restaurant has lost sales of it's 15.99 dinners and
it's PROFITS are LOWER. They might be increasing share by selling
more meals but at a lower profit. (as I've amply shown from the
figures I quoted. If the Pc makers profits are down like 15% and Apple
UP by 15% crudely put the difference is 30%. Msft profits is down 32%,
results announced one day after Apple so the quarters coincide so the
difference between the two of them is what: 47%! And you are
implying PC guys are not suffering but Apple is. That's incorrect).


From 2008 figures Apple now how holds 66% of retail sales of
computers over a 1000 dollars, the more profitable cream of the PC
business. Any Pc maker would give their right arm for that rather than
netbooks.

And anyhow, Apple sales down only 3% and that's only in comparison
with year ago quarter when they launched the Air, and PC sales down
6% or more (IDC says 7%). that's the fact. Fudging it by overseas sales
etc is pointless, you whole paragraph concluding that PC makers in US
not suffering I've disproved.

Also the problem as I mentioned about this market-share from
Gartner and so on is how they count things.

And like I said the data is structured so that they count netbooks
which are mini function computers usually running modified OS but
they don't count Apple's mini function computer the iPod touch which
runs a modified OsX and there's a heck lot more apps for the touch
than netbooks. The iPhone too is mini computer with a phone
function. Not counting them is just like I said wordplay on 'computer
device' definition, semantics rather than real numbers. If you count
Touches and iPhones as computers, Apple's computing sales numbers
is astonishing.

(it's like years ago when jet engines first came out and you did
market-share for aerospace companies but you say one guy is losing
market share because he's building new jet aircraft and you're
defining airplanes as 'ONLY those with propellers'. )

In 2008 Apple sold more iPhones (at probably gross $500 a pop) and
Touches than ALL the netbooks put out by ALL the manufacturers.
Around 14.6 million netbooks sold but Apple sold many millions more
iPhones and iPod touches. But data collectors don't count iPod touches
but they count netbooks which have got less applications!

(really can anyone seriously contend that the iPod Touch is NOT a
computing device?)

(and no wonder Apple is not rushing into netbooks, they don't have to!
)

iPhone sales up 123% and Touches doubled last quarter from year
ago.

If you count them Apple's computing market share has exploded.
Apple is more focused on the future which is touch screen mobile
computing and unlike netbooks (as seen form the decline of PC maker
profits) they make a money doing it.

( also you said "eventually impact their mac sales figures quite
negatively in the next year or two." From all indications Apple is going
to launch a Mac 'Tablet' or another computing device pretty soon and
it'll probably be a hit as well. But no doubt you guys won't count them
either as 'PC's)

(and before you 'doom' and gloom future mac sales: fact is anytime
Apple wants to build a netbook it can, tech is simple but PC guys will
struggle to build a ipod Touch or an iTablet).

But I don't need to get into a debate or flame war about the Touch is a
computer etc. Take the market share numbers as you like.

End fact is Apple had their best 'non holiday quarter' ever while PC
makers losing money and not even meeting their own projections.

If you want to live in PC apologist reality distortion field that Apple is
doing badly and losing market share by counting devices that you
want and not counting others, fine.

Fact is 9 years ago Microsoft market cap was near 600 billion and
Apple only 17 billion. Today Microsoft is around 180 billion and Apple
113 billion.



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My point is about market share, not profits
eMJayy 2nd May 2009
Trying to include iPods and the iPhone as computing devices similar to netbooks is utterly ridiculous. You can't even attach an external hard drive to an iPod or iPhone. You can't upgrade their hardware. And unlike real computing devices, you can't choose to change the OS or even run more than one App at a time. If just the ability to run a select number of applications was the only criteria for classifying a gadget as a computing device, a lot of the gaming consoles out there would be on the list.

The fact is that, despite Apple's profitability overall, their mac line still managed to slip from nearly 10% market share to just 7.4% in just one financial year. If you look at Gartner's report you'll see that, overall, shipments still increased for HP, Acer and Toshiba while down for Apple and Dell. They may not be making as much money as last year, but they've at least still managed to move more inventory than this time last year, while Apple hasn't. Apple's plan to introduce tablets isn't going to rescue their market share because they won't be able to compete on price with netbooks. It's the price that's driving netbook market growth. The only way that Apple could compete is by attempting to have telecom companies subsidize the tablet as they already do with the iPhone. The problem there is that it's likely that more companies will be subsidizing netbooks by the time Apple manages to get an iTablet off the ground. Nothing that Apple can make is going to be able to compete with a subsidized $50 netbook. As for Microsoft's profits, who actually cares? Windows is an afterthought for me as I use Linux now most of the time for general use. But Microsoft has a monopoly on the PC market and it won't change just because they're making less money at the moment. You can remain fixated with your profits. I'm simply looking at the PC buying trends and how the netbook concept may irreversibly change it coming out of this recession.
0 Votes
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Count what you want Apple fine, more errors as you misread marketshare data
Davewrite Updated - 2nd May 2009
iPod Touches and iPhones not computers?

Do you read all the things they are doing with Touches and iPhones,
for example the army is using them to do language translation, to
identify people, to do ballistic calculations, as biometric sensors, to
control remote vehicles, use them to coordinate and plan with GPS
mapping, etc,

And that's just the army. I won't bother to list multitude of things
others like doctors use them for.

So these are not computing devices? like I said you all just put your
own criteria for example you say "And unlike real computing devices,
you can't choose to change the OS or even run more than one App at
a time." From what i remember before Apple went to Intel or OsX you
couldn't run other OS on macs except the Mac OS. (some hacker
could do it but not off the shelf just like hackers can do stuff with
iphones as well). And in old days before advances like multi
threading you couldn't run more than one app at a time on computers.

So you're saying those millions of Mac Cxs, Mac IIs
etc weren't computers?

And on an iPhone you can run more than one app for natively installed
Apple Apps, you just can't do it for 3 rd parties (and this is only due to
memory limitations not OS, when battery and memory improves it'll
be possible) With Win 7 starter for netbooks you can only run 3 apps
so each have their own limitations. (but of course you'll accept Win 7
limits but not Apple's!)

My dictionary says Computer "Also called processor. an electronic
device designed to accept data, perform prescribed mathematical and
logical operations at high speed, and display the results of these
operations."

To me the iPod touch fulfills that.

The dictionary doesn't use any of your definitions!

You're just like in my aerospace example: guys years ago saying that
it's not an airplane because it's got no propellers so jets are out.

Go Google iPod Touch and iPhone Computing Platform and read the
articles.

But you say iPod Touch not a computer fine. It's pointless to argue as
you've got your own definition. Its just semantics.

(like years ago some football guy says to me when I was doing
Archery "shooting arrows, that's NOT a REAL sport!" Ok fine whatever)

And Apple doesn't care anyway as they keep making money.

And you keep on contending "The fact is that, despite Apple's
profitability overall, their mac line still managed to slip from nearly
10% market share to just 7.4%"

where do you get such stats?

Your OWN Garnter link if you look at the table shows Apple Q108 at
7.5, and Q109 at 7.4. That's a drop of 1% mainly due to netbooks (but
hey we don't count Touches!).

You spout at me Gartner but did you even read your own Gartner
data?

Maybe you got your 10% from different sources like NetApplications.
NetApplications a web metric firm puts Mac's market share higher but
they count them different than Gartner and you can't put them
together to make a point. NetApplications say Mac market share in
March 09 is 9.77, in April its 9.73. That's very close, nowhere the
drop you say.

See you can't put Net Applications near 10 and compare them to
Garntner's near 7.5!!! They are different polls!

Like I said errors in you interpretation of market share numbers.

and why this obsession with Mac market share?

Your title "my point is marketshare not profits", the whole point of a
company is profits! You can gain marketshare for example by
discounting stuff or even giving them for free, but for a company
what's the point unless you're making more profits? Like GM saying
we're selling so many millions of cars, we're the worlds largest car
maker etc. what the point? You're like a guy cheering GM "look at their
worldwide marketshare of cars!!" and I've shown the marketshare
numbers is not bad for apple, Gartner only 1% down from year ago,
Net Applications hardly dropping in last few months and that's
because of netbooks and not counting mobile Apple computing
devices.

Like I said Apple profits up 15%. Dell, Hp down. MS down 32%, so
difference between them is 47%.

Also your 'fears' that Apple is going to suffer. Hey like I said:

if Apple decides to build a netbook, technically there's no
problem but for the new high end mobile touch devices the PC guys
are in trouble.



0 Votes
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Let's hope that the hackes will put linux on them
Linux Geek 30th Apr 2009
Nice hardware but expensive.
0 Votes
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YAWN...
SimonUK2 30th Apr 2009
Change the record...
0 Votes
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SRSLY
urbandk 30th Apr 2009
(nt)
0 Votes
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On what? What are you even talking about? (nt)
Metronome49 1st May 2009
NT
0 Votes
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Apple doesn't do market share gains
mlindl 30th Apr 2009
This place is stunning in the lack of editorial logic. If
Apple wanted market share, is anyone here so stupid as to
think that they couldn't have figured out how to do that
long ago?

If a low price point is all one needs to gain market share,
that would be as true for Apple as it is for Acer or Dell, but
guess what? Price point is no guarantee of market share,
ask Dell and HP. It helps, but you have to deliver
something compelling.

Apple is and has always been about delivering a great
experience at a reasonable price for years. Most Macs are
still in service after 5 - 6 years and have a resale value.

They aren't more expensive than equivalent Windows
machines. What they are is something that your average
Joe doesn't aspire to: greatness. Your average Joe aspires
to being average and that would be Windows.
0 Votes
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Religion and snobbery
Economister 30th Apr 2009
Personally I could not care less what you prefer to buy. What continues to astound me however is the mindlessness often associated with the Apple cult. I have to say that Apple has done an absolutely phenomenal job in brain washing a large percentage of its core users. They must suffer from some inferiority complex that require an association with some overpriced elitist hardware for self validation. It must be an amazing business to be in when you can fleece your customers regularly and they brag and feel good about it. That is not rational behavior, but more like a cult.

If you like/buy Apple products because they somehow work better for you and you do not mind paying the price, fine. I respect your choice. If you have an overwhelming need to be associated with the halo to make yourself feel better, you look like a fool.
0 Votes
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I think you're just jealous. [nt]
olePigeon 30th Apr 2009
[nt]
0 Votes
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similarly...
benardquek@... 30th Apr 2009
Ah yes, and for some reason the reverse is true too.

If you buy and use Windows and think it is the best operating in the world that is also low cost, efficient and works like a charm, you could well be deluding yourself.

I own both systems, and if I want to get some REAL work done, I switch on the Mac.

Windows....is a mess when using it for mission critical work, it will fail you just as you start to depend on it.

I bought into Vista thinking it could well match the Mac in reliability and user friendliness, boy was I wrong....I refuse to live in denial anymore, you get what you for...and in any Windows case, you are just being ripped off without know it.
0 Votes
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And my experience is just the opposite...
Confused by religion 30th Apr 2009
... you want to just get the work done, use Windows.
0 Votes
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This morning...
SimonUK2 1st May 2009
...I have watched an XP box take 25
minutes to login to the domain. 25
minutes.
0 Votes
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Then you saw...
wolf_z 1st May 2009
...an incompetent IT dept. Our XP boxes AND Vista boxes log into our domain in *seconds*.
0 Votes
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Probably...
fairportfan 1st May 2009
...it was because of all the botnets it was already hooked up to.
0 Votes
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And you almost sounded well thought out and reasonable:(
James Quinn 30th Apr 2009
Look if you had not use the term "over priced" in your first paragraph.
The entire piece would have been perfect. Still you did and that in effect
ruined the second paragraph which by the by was very reasonable if not
for that first statement.

You see you made the judgement that Apple products were over priced
there for destroying what you said in the second paragraph.

Pagan jim
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Yawn...
SimonUK2 Updated - 1st May 2009
"Personally I could not care less what you prefer
to buy. What continues to astound me
however is the mindlessness often associated with
the Apple cult."

Seeing posts like that, the same can easily be said
for Windows and Linux. It's nearly all
down to the media obsession with all things Apple.
People like you come on to these message
boards insinuating that because, as a consumer, I
chose a platform that you think
isn't very good/is too expensive/you don't like
Steve Jobs/Apple are too closed (that one
really grinds my gears!) I'm obviously a
cultist/fanboy that has more money than sense. I
find that offensive. You don't get it so I have to
go by your rules? No.
0 Votes
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Who are these cultists?
Metronome49 1st May 2009
I have never met someone who uses Macs so they can feel cool. Maybe I'm in the wrong part of the country, but everyone I know has good reasons for using Macs.
0 Votes
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Here's a possible example
brble 1st May 2009
This was years ago, pre-OSX, and I'm not so much addressing the technical accuracy of this person but their attitude, which I think is still prevalent today in many Mac circles.

At one company I worked we hired a graphic designer, and he insisted on needing a Mac. We were a small 100% Windows shop, and really didn't want to start adding different platforms if we could help it, so we asked why he felt it was necessary. He said that Windows systems were just too unreliable and required too much maintenance, and he didn't have time to deal with that. The tech staff disagreed, but we got him a Mac.

A few weeks later I stopped by to see some of the artwork he created for our web site, and he said I'd have to wait, that he was rebooting. Concerned that there was an issue, I asked what the problem was, and he said, "Oh, not problem - you just need to reboot once a day to make sure everything runs smoothly."

A few weeks after that I stopped by again, and he was running a disk utility. Again, concerned that there was a problem, I asked about it and his response was much the same. "You just need to run this disk check utility every few days to make sure nothing goes wrong."

We definitely didn't need to do that much for the Windows workstations we had, so it didn't sound to me like the Mac was being more robust or reliable for him.

The point here is not to compare the two platforms, but more that a person felt Macs were better even though he was putting more effort into it to keeping it running than any Windows user at the time. It sounded to me like his choice of what was best had nothing to do with technical merit and everything to do with attitude.
0 Votes
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Cause and Effect
urbandk 30th Apr 2009
3% drop in sales and decision to offer a lower priced mac are not necessarily causally related, as some more fervent Mac admirers have pointed out.
0 Votes
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It should be easy.
ashdude 30th Apr 2009
Apple just needs to gut the Mac like a cheapo PC and there ya go.
0 Votes
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One simple change is no change
Ken_z 30th Apr 2009
Apple traditionally keeps their price
points, but improves each of their price
points.

It's therefore simple to add a lower price
point by keeping the existing low end
products and put it into the lower price
points.

Then the rest of the line can be upgraded
as desired, maintaining their price points.
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No, they won't.
Dealing 1st May 2009
Cutting price just to gain market share is totally against Jobs' business philosophy.

And he is really serious about it.Rumor has it that Steve Jobs once tried to sack the CEO that did not follow this philosophy.

Besides, Apple always believes that all of their products ARE VERY CHEAP compared to benefits that customers will get from them.
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Just like auto companies
Roger Ramjet 1st May 2009
Apple is currently like a BMW or Jaguar - they only offer high end products. That is a good business, but it is NOT a growth business - and we all should know that Wall Street want to see growth. So what should Apple do?

They should take a page from auto companies like Toyota. You define the top end (Lexus) and then you figure out how to offer cheaper packages - maybe under another nameplate. For Apple it's all in the package. I bet we will see an "upscale" brand that is defined by Aluminum and thinness. The new "affordable" brand will be colorful plastic (like the old iMacs) and slower CPUs and less memory (and not many ways to upgrade). Price them $200 - $300 more than the competition.

This is the way things exist today in the PC world - desktops are MUCH cheaper than laptops - but Apple doesn't have many desktops (the mini shouldn't really count). Create the new colorful low-end desktops and laptops - and maybe don't even call them "Macs". Keep that high-end brand for the "good" stuff.
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Not sure taking one's cues from the Wall Street
James Quinn 1st May 2009
crowd is anything one should strive for:P Hence the situation we
currently find ourselves in today. Maybe it would be wise to return to a
time when a business which makes a solid profit year after year is looked
upon as a good one. Maybe looking to "cash" in on Wall Street was not
such a good idea and has cost us in terms of long term thinking and we
are to focused on the short term instant cash model? Maybe when you
stop and think about it.... it just isn't a healthy model after all?

Pagan jim
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Yeah, right NT
wolf_z 1st May 2009
NT
0 Votes
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RE: Apple may introduce cheaper Macs for market share
Gis Bun 1st May 2009
Oh great. Cheap Macs. Already the quality control for Apple products suck. Like the usage of buggy Nvidia chips in various Macs to the hairline fractures in iPods to exploding batteries in laptops.

Apple has already stated that a netbook version of the MacBook will still cost around $700. That's $200 more than the equivalent hardware of a Windows or Linux netbook.

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