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66% Apple Market Share For Sales of High-End PCs 724

An anonymous reader lets us know about a recent analysis of retail computer sales numbers that shines a spotlight on Apple's sales growth as the PC market has flattened. In the lucrative >$1,000 PC segment, in the first quarter of 2008, Apple's retail market share was 66%. This includes a 64% market share for laptops and a market share for desktops of 70%. The article attributes the bulk of this success to Apple's stores. Fortune picked up this report and pointed out the somewhat obvious fact that the >$1,000 PC segment is Apple's by default, since Dell, HP, and Lenovo sell the bulk of their machines in the $500-$750 range, and Apple has only one model selling for less than $1,000. As the analyst said, "If you don't give people a choice [in the Apple stores], people will spend more."
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66% Apple Market Share For Sales of High-End PCs

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  • Correction (Score:2, Insightful)

    by JavaBasedOS ( 1217930 ) on Tuesday May 20, 2008 @12:59AM (#23471162)
    "If you don't give people a choice [in the Apple stores], people will take their money somewhere else."

    Honestly, Apples are overpriced for what hardware and software they contain. Sure they may use a stable UNIX based OS, but you can get just that with any respectable Linux OS (Debian, Ubuntu, etc., depending on the person's preference.)
  • by Erris ( 531066 ) * on Tuesday May 20, 2008 @01:02AM (#23471182) Homepage Journal

    It's funny to watch Windows Fanboys write about Mac. Somehow, they always loop the discussion around to their favorite software. Check out this exchange from the fine Apple Watch article:

    "iMacs are growing and the Windows desktop ain't. No matter how you look at it, Apple is outperforming Windows." [Stephen, CEO of NDP]

    A statement like that raises the question: Is Windows Vista the problem? The operating system has met with a cool reception, even with Microsoft claiming 140 million licenses have been shipped. "I don't believe that Vista's to blame," Stephen responded. "The vast majority of consumers don't care [about the installed operating system]."

    Really? For about a year now, studies have shown that everyone knows about Vista but no one wants it. It's poor performance has convinced all but the most self loathing of people that Windows is not going anywhere. But finally, Apple is now using almost exactly the same hardware - How can anyone not see that the only remaining difference is software that does not suck?

    You have to wonder if any of these people have ever used anything but Windows for more than a week in the last ten years.

  • You get... (Score:1, Insightful)

    by MsGeek ( 162936 ) on Tuesday May 20, 2008 @01:06AM (#23471204) Homepage Journal
    ...what you pay for. Most of those computers mentioned in the article are made from the absolute cheapest parts that HP, Dell, Lenovo, etc. can get. Apple tends to use the best parts they can get, and the results speak for themselves. I have Macs that are still in running order after 20 years.
  • by arbiter1 ( 1204146 ) on Tuesday May 20, 2008 @01:07AM (#23471212)
    that is reason apple biggest sellers are 1000+$ machines, anything under that you can't really do anything with.
  • spin at it's best. (Score:2, Insightful)

    by timmarhy ( 659436 ) on Tuesday May 20, 2008 @01:07AM (#23471216)
    way to try spin the fact mac's are a rip off into something positive. "zomg apple sells nothing under $1000, and since no one but mac fans are dumb enough to spend that much they rule!"
  • Re:Correction (Score:4, Insightful)

    by 75th Trombone ( 581309 ) on Tuesday May 20, 2008 @01:09AM (#23471236) Homepage Journal
    But for many people, they are NOT overpriced for the superior apps written for them. Most *n?x apps are by and best for nerds who love to tinker with every option of every program; most Windows apps are just thrown together to make a quick buck.

    But Mac apps, on average, are more thoughtfully designed and crafted than their equivalents on PCs.

    That is the very real difference between Macs and PCs, and that's why some people (including, for the first time, in the very near future, myself) are willing to pay the Apple premium.
  • by Anonymous Coward on Tuesday May 20, 2008 @01:18AM (#23471284)
    I may have missed something, but what is it that you want to do that you can't on an $800 Lenovo T61 with a 2.0 ghz Core 2 Duo and 2gb of ram?
  • by Anonymous Coward on Tuesday May 20, 2008 @01:19AM (#23471286)
    You know, just the other day, I was looking at a Dell laptop running Ubuntu. I decided to compare it to the current MacBook. After upgrading the Dell to match Apple's stock options, the Dell was $100 more expensive (and still had a slower C2D processor and less disk space).

    On one hand, Dell's plain model would suit most people fine. On the other, you get more for your money with a Mac. And ultimately, it works for the consumer's benefit. Macs depreciate much more slowly than Dells, meaning they can get a kick ass fast machine for less than even the cheapie Dell, if they trade in.
  • Re:You get... (Score:5, Insightful)

    by miratrix ( 601203 ) on Tuesday May 20, 2008 @01:19AM (#23471288)
    Of course! Only the prettiest and the healthiest Core 2 Duo's are hand picked by the Intel engineers in bunny suits and lovingly put down on the MacBook motherboards.

    This, of course, is in contrast to the Core 2 Duo's that goes into the Dell laptop - they're from the bottom of the barrel and they are shoveled into the sockets by some off-shored child labor getting paid 25 cents an hour, not getting that TLC that the Apple counterparts get. No wonder the Core 2 Duo's in Dells are so dysfunctional!
  • Re:Correction (Score:5, Insightful)

    by 0100010001010011 ( 652467 ) on Tuesday May 20, 2008 @01:20AM (#23471300)
    You're joking right? It took me a few months to finally figure out how to get a RAID card in my debian box to work (Had to recompile the kernel with support for that card).

    Oh and with 2.6.24 they completely changed away things were. Apparently there's IT821X kernel drivers, then there's libata. So magically when upgraded my kernel all my hd* drives are now sd* drives. But wait, with libata (or was it the IT drivers) it didn't support UDMA. So I was stuck transferring at a whopping 3-4 MB/s. Recompile again. Shit, now grub thinks my hda is sdi. Reboot again and change grub menu. Ahh, finally... no wait. I have to put a noraid=1 at the grub so that the drive doesn't enable RAID. A short 8 hours after doing a simple kernel recompile I'm back up and running.

    Don't get my wrong, I love my linux home server. But in no way does even Ubuntu come close to having everything integrated and 'just working'.

    There's a reason my MacBookPro is my main machine, because some days I don't want to tinker with all of that. My grandma finally wants to get online. My parent asked me what I suggested and honestly an old G4 in simple finder with a few applications: iPhoto, Safari, Mail (if that). SSH will be enabled and I'll have an account for fixing most things.
  • by Rix ( 54095 ) on Tuesday May 20, 2008 @01:29AM (#23471368)
    Take a look at a brick and mortar store retail store that sells computers. You probably won't see anything over $1000, because that's not what the market that buys computers there wants.

    People going to Staples or whatever to buy a PC want a cheap office machine, emphasis on cheap, and they want it immediately. People willing to spend more or wait a few days will either order from somewhere like Dell, have a whitebox store assemble one from parts, or just do it themselves.
  • by Toe, The ( 545098 ) on Tuesday May 20, 2008 @01:34AM (#23471414)
    OK, I'll take some fanboy bait...

    The bang-for-buck of Apple's hardware plus their software is a little difficult to justify by itself (though it is arguably a better deal than Windows and a lot less setup than linux). But the industrial design should not be overlooked as a value factor.

    Compare a "cheap" consumer-grade MacBook [apple.com] to a similar consumer-grade Dell [dell.com]. The MacBook not only looks svelte and (to some) cool, it also is simply more convenient to deal with. If your computer is something that you use a lot, some of these little details can be very important.

    I really appreciate the way a MacBook is almost completely silent. That it slips into the lid of a briefcase. That its speakers, microphone, and camera are all accessible but almost invisible. That I can click, right-click, scroll, pan, and more without moving my hand from one place. That it stays out of my way while I use it, instead of calling attention to itself: no blinking lights, no flashy logos in my face, no stupid buttons all over: it is just a screen with easy-to-use input devices.
  • by 93 Escort Wagon ( 326346 ) on Tuesday May 20, 2008 @01:37AM (#23471440)

    As the analyst said, "If you don't give people a choice [in the Apple stores], people will spend more."
    Yeah that makes perfect sense because, oh I don't know, it's not like they can turn around and walk out without buying anything. No one ever does THAT.

    People that buy Apple computers do so because they think they're getting their money's worth. People who buy higher-end PCs are the same. Dell has been mentioned already in this discussion - well they have laptops that cost several grand, and people buy them... even though Dell also has laptops for $500 or thereabouts.
  • by amper ( 33785 ) * on Tuesday May 20, 2008 @01:43AM (#23471478) Journal
    As the analyst said, "If you don't give people a choice [in the Apple stores], people will spend more."

    Translation to reality:

    "If you give people the choice between, as an example, a $2500 Wintel PC and a $500 Wintel PC, both of which offer the same crappy Windows Experience, most people will choose to invest less of their money in a losing proposition."

    What truly amazes me is that, apparently, a full third of the people who can afford a superior product nonetheless invest in the inferior version.
  • by gsgriffin ( 1195771 ) on Tuesday May 20, 2008 @01:44AM (#23471484)
    Uh, this is nothing exciting. How many PC's have you bought in a store. Not many. This is retail outlets. Dell sells three times as many computers and tons more over $1000 direct from them to you without the overhead cost of a store filled with cool glass displays and backlighting. The apple stores are designed to be more like a nightclub. They want people to come in and fall in love with the piece of hardware and its smooth round corners. You spend the extra money so you can make love to it. Post the stats on all computer sales and see Apple still with a very small bite of the global sales. Don't get too excited Macaddicts.
  • Re:You get... (Score:2, Insightful)

    by UnknowingFool ( 672806 ) on Tuesday May 20, 2008 @01:49AM (#23471514)
    That would be true if the Core 2 Duo or CPU was the only part in a computer. The last time I checked a computer consisted of other parts like HD, optical drive, etc. I think motherboards alone consist of dozens of chips.
  • by gnutoo ( 1154137 ) * on Tuesday May 20, 2008 @01:53AM (#23471542) Journal

    It's all about pinning your opponent and cutting off their air supply.

    How long will all the other laptop makers be able to hide the losses their "premium" laptops must be suffering because no one wants Vista? While they "race to the bottom" Apple is selling exactly the same hardware for twice as much. The only difference is software. The blackout will come soon.

  • Re:Correction (Score:4, Insightful)

    by the_womble ( 580291 ) on Tuesday May 20, 2008 @02:00AM (#23471584) Homepage Journal

    My grandma finally wants to get online.

    Your grandma uses RAID?

    Most things that desktop users does work out of the box with Linu. The only common problem is with wireless networking: if you buy a PC with Linux pre-installed (from Sytem76 for example), even that will not be a problem.

    How easy is it to get MacOS working on random PC hardware? Compare like with like and Linux looks pretty good.

  • Note to commenters (Score:5, Insightful)

    by catdevnull ( 531283 ) on Tuesday May 20, 2008 @02:03AM (#23471598)
    Just a friendly note to all other commenters posting in this and any other thread:

    Don't be a jackass. Seriously, If you have an opinion, express it thoughtfully but avoid assigning labels to those with different opinions.

    For example:
    "Apple fanboys are so stupid--they'll pay too much money for a computer they can't upgrade or build for themselves."

    This is how an immature person makes an argument. I know I'm asking a lot here on slashdot, but it would be great to see the above opinion expressed in the following way:

    "I'm not sure it's wise to spend one's money on a computer that can't be upgraded or one that can't be assembled from parts you pick for yourself. For me, the convenience tax and premium prices for Apple hardware are way too high to be justified."

    Macintosh users should note that taking the former flamebait only reinforces the baiting behavior. You paid a pretty penny for the computer you're using to respond so try to use more than just the "CFCKYUO" keys in your response. As much as you might try, it's futile to explain the subjective nature of the "Mac experience" to the kind of person who types flamebait anyways.

    Just say no to flamebait.
  • by Merusdraconis ( 730732 ) on Tuesday May 20, 2008 @02:04AM (#23471606) Homepage
    But then they would lose their luxury lustre. The Apple brand is built around the idea that it's a luxury good that only trendy people use - the elaborate Apple stores with the people who fix your computer so you don't have to, the industrial design that looks better than the standard Dell, and the high-end specs and price. Apple makes its money because it can afford, through ruthless and effective positioning, to call itself a luxury good, and price accordingly.

    Prada doesn't make cheap sunnies for the punters. Apple doesn't make cheap laptops for the punters. If either tried, they'd ruin their luxury reputation and they wouldn't be able to afford to put all that effort into making a nice-looking product.
  • Re:Correction (Score:4, Insightful)

    by 75th Trombone ( 581309 ) on Tuesday May 20, 2008 @02:09AM (#23471640) Homepage Journal
    Design != skinning. Design is how it works, not how it looks.
  • by countach ( 534280 ) on Tuesday May 20, 2008 @02:30AM (#23471766)
    Apple does compete with Dell. They suck up Dell's lucrative high end, leaving Dell with the dregs. They could compete with Dell's low end too, but it's more profitable not to.
  • Re:Correction (Score:3, Insightful)

    by Admiral Ag ( 829695 ) on Tuesday May 20, 2008 @02:42AM (#23471840)
    It probably has to do more with Mac developers taking the HIG seriously (more seriously than Apple sometimes does, truth be told). Perhaps also the number of designers who use the platform has something to do with it (good design is a selling point for them to a greater degree than us ordinary folk)

    For example, the quality of Mac shareware is generally excellent. There are many Mac shareware developers (and long term Mac users don't need names to know who I am talking about) whose software is a joy to use simply because they cared enough to produce a superbly polished design.

    When they don't, it is obvious. A good example is Firefox, which still isn't really up to par on the Mac (the new version does seem better). When I want a Gecko based browser, I use Camino, because it works just like a Mac app should. Frankly, Mac shareware developers are often better at this than large commercial developers.

    Google also needs a kick in the pants. Google Earth on the Mac is horrible, but this is from the same company that distributes Picasa for Windows, which I consider an interface disaster.

    It's going to be interesting to see whether, with the influx of iPhone developers (WWDC sold out for the first time ever this year), the standard stays the same.
  • Re:Correction (Score:2, Insightful)

    by ivucica ( 1001089 ) on Tuesday May 20, 2008 @02:54AM (#23471924) Homepage
    Oh yes, and MacOS X can run superb on my Inspiron 1300, without any fiddling, thank you very much :) You're comparing apples with pears (pun intended). You can't do that. Does OLPC XO have such problems as you are describing? No, it uses Linux distribution suited for its needs. Same for the Asus eeePC. Apple builds their OS for their hardware. If you wanted to use RAID, you're use Apple's recommended hardware, and you wouldn't just plug in a random RAID card. I'm having trouble getting Linux to work on my iPAQ h3800, so what? I asked for it. Same as you.
  • by NtroP ( 649992 ) on Tuesday May 20, 2008 @02:57AM (#23471942)

    When I moved out on my own I started buying tools to help me keep my apartment and eventually my house repaired. I started out picking up the first tool I saw that was cheap and did the job. $10 hammer, $5 multi-screwdriver set, 200-piece no-name, all-in-one socket sets for $20.00, etc. They did the job. After all, you can turn a screw with a cheap screwdriver just like an expensive one.

    Needless to say, I've had many versions of each over time. I can't count the times I've had my phillips-head screwdriver turn into a rounded-out, useless waste of money at the first recalcitrant screw. It always happens at the worst time too. After expressing my frustrations with my dad one time (in language that probably shocked him) He looked at me and simply said "Why don't you buy decent tools?" My response was "Have you seen how much they cost?!" He responded "How many times have you re-bought that screwdriver?". I had to admit that I'd probably spent twice the cost of a "pro" screwdriver over the years on cheap ones and cursed them every time.

    Over time I started applying this lesson to other things in my life. I found that every time I took the cheap option "to make due" I was disappointed and invariably wound up replacing it much sooner than I should have. I found that I actually saved money and aggravation by buying quality the first time. I traded in my cheap POS for a used Mercedes. I threw out my Walmart tennis-shoes for a pair of quality walking shoes. I passed up the $3.00 T-shirts and invested in quality brands. The list goes on...

    I've had the extreme pleasure of driving my Mercedes every day for the last 10 years. It's as good as the day I bought it and when I go to sell it I'll have paid less for it year-over-year, than I ever did on the myriad el-cheap-O's I used to drive. Where I used to replace my shoes every year, or so, I have had my current pair of shoes going on 4 years and have experienced more comfort than I had imagined possible in a shoe up till that point. And my T-shirts? They used to fade and grow thin after a few washes and I'd donate them or throw them out and have to re-buy them. Today, I still have T-shirts that look almost new that I've worn regularly for 7 years. I still have one I wore to my brother's wedding rehearsal 9 years ago.

    All this is a very long way of saying that, amortized over time, buying quality is often cheaper (and almost always more pleasurable) than buying the first thing you can afford.

    Now, I've built my share of PC's. I enjoy picking through catalogues and eBay auctions and getting the best bang for my buck. But, those are my hobby machines. My TrixBox. My MythTV. My fun stuff. My main system is (currently) a Dual G5 Power Mac that I bought refurb'ed shortly after they came out. Even then, it cost me more than $1,000, but I've had it almost 5 years now and It's still doing it's job well. My neighbor just gave me his 3rd Dell in 5 years (a trade for re-installing Windows so many times). He's spent way more on all those systems than I did on my one and has had no end to his aggravation. I sit down at my system (that I've never had to re-install) and get my work done. Would I like to get a cool new 8-way Intel system? Sure. No doubt. But I don't *need* it yet, and I haven't saved up for it yet. It's budgeted for this fall - yay! :-D

    Some people can get by just fine with the cheapest piece of crap Dell or Walmart sells. It looks like crap, it's loaded with useless crap, it's made with the cheapest parts that can be had, it's "settling" for the lowest common denominator. Like the cheap screwdriver, it can get the job done, but you wind up fighting it every step of the way. Their entire experience with computers is based on that. They are used to it. They expect it. It's sad.

    There is something special that you experience the first time you pick up a professional tool. The hammer feels more balanced. The screwdriver turns the screws with surprisingly little effo

  • by Moraelin ( 679338 ) on Tuesday May 20, 2008 @03:06AM (#23471998) Journal
    Personally I think the claim is mis-leading anyway. The category is narrowly defined as not only over 1000, but also bought retail. So it's crafted to exclude all the expensive workstations and servers bought by corporations, since they don't usually just drive a truck to WalMart to buy them retail.

    It's a bit like saying that Joe is the world leader in selling over-$1000 cats by Ebay and air mail. Sure, he only sold one on Ebay, but he's the only guy who sedated the cat and sent it by air mail. The rest of the people bought their cats face to face, or had them delivered by courier in a few cases. Narrow it down to Ebay and air mail, and, bam, Joe has 100% of that market.

    Better invest in Joe. In fact, this year he found two stray kittens in his backyard, and plans to sell them both on Ebay by air mail. That's 100% year-on-year growth, baby. At this rate, in 20 year, Joe will ship over 1 million cats yearly. As a savvy investor, you don't want to miss _that_ boat.

    In other words, it's just a PR masturbation exercise.
  • Big Correction (Score:2, Insightful)

    by westbake ( 1275576 ) on Tuesday May 20, 2008 @03:12AM (#23472048) Homepage

    Next time buy a $40 card that works. You only defeat yourself when you give money to a card maker that is not playing nice. I'm glad people write software for nasty hardware but I'm not about to waste months waiting for it. There are too many good cards and too little time to fool with the bad ones.

  • by Anonymous Coward on Tuesday May 20, 2008 @03:34AM (#23472154)

    This is how an immature person makes an argument.
    And your post is how an arrogant person makes an argument.
  • by servognome ( 738846 ) on Tuesday May 20, 2008 @03:44AM (#23472200)

    Personally I think the claim is mis-leading anyway. The category is narrowly defined as not only over 1000, but also bought retail. So it's crafted to exclude all the expensive workstations and servers bought by corporations, since they don't usually just drive a truck to WalMart to buy them retail.
    I think that's a good way to define high end computers sold to average consumers. You intentionally want to exclude corporations if you are looking at the consumer purchases.
  • Style is money (Score:3, Insightful)

    by Colin Smith ( 2679 ) on Tuesday May 20, 2008 @04:22AM (#23472418)
    Money is social status. It's the fact that it costs more and is out of reach of the mob that makes it stylish...

    If you buy a pair of ripped jeans which cost you $5 you are cheap and have no style. If you buy the same pair for $200 you are a superstar.

     
  • by Weedlekin ( 836313 ) on Tuesday May 20, 2008 @04:31AM (#23472478)
    "I really think Apple would increase their market share of all systems if they lowered their prices or at least had models that started at lower prices."

    Companies aim to maximise profits, not market share. More sales doesn't necessarily mean more profits if those sales are achieved by lowering margins to a point where they need to sell 20 items to make the same as they currently do from one (meaning they _have_ to sell 20x as many, and also cope with 20x the support calls, carry 20x the inventory, etc.) or in the case of a company with a reputation for quality, by cutting corners in ways that result in an inferior product.

    The fact that Apple are making lots and lots of money while others with significantly larger market shares are struggling means that the company obviously isn't being run by idiots who aren't capable of working out the price point for each product that allows them to maximise their profits while maintaining their very high customer satisfaction ratings.
  • by Moraelin ( 679338 ) on Tuesday May 20, 2008 @04:34AM (#23472492) Journal
    Yes, but the intersection is still mis-leading. Percentage of retail _or_ percentage of over-1000 computers could say something. (If you do understand that you are talking about a particular niche, not about the company's overall profitability or market share.) But the intersection is just a narrowly crafted niche, for PR masturbation reasons.

    It's like saying that Moraelin's Fairies won the most games played on a rainy Tuesday under artificial lighting. They have a whole two games won under those conditions, while everyone else has at best one win that's on a rainy day _and_ tuesday _and_ played at night. It's trivia, at best. It doesn't make it the best team in any actual category that matters, it just crafts an artificial niche to make my team look good.

    And probably more importantly, a tell-tale sign of a PR masturbation exercise, is that even that niche doesn't really support the conclusion they try to feed you. ""If you don't give people a choice [in the Apple stores], people will spend more."" Really? Exactly which part of that percentage supports that conclusion? Did they compare before and after a price hike, or what? Did Apple try to have cheap computers too, and people were going for those instead?

    But even that wouldn't be visible, if you only look at the over-1000 segment. You need an entirely different sample to make that point.

    No, it's very likely just a PR exercise masquerading as news.
  • by Jellybob ( 597204 ) on Tuesday May 20, 2008 @05:21AM (#23472702) Journal
    I'm not sure they actually are trying to target themselves as a "luxury" good.

    It appears that you consider a computer that works from the moment you turn it on and real people enjoy using, a luxury, but I think that it's just how things should be.

    the elaborate Apple stores with the people who fix your computer so you don't have to


    That's called customer service. If I bought almost any other product, and it broke, I'd expect the person who sold it to me to get it fixed.

    Apple doesn't make cheap laptops for the punters.


    If you actually spec up an equivalent Dell, you'll find that it usually comes out slightly more expensive then the Apple machine. Just because Dell will sell you a $300 piece of crap doesn't mean they're selling you something better as well.
  • by apt-get moo ( 988257 ) on Tuesday May 20, 2008 @05:47AM (#23472824)

    your graphics designers are tards...video cards have almost no effect on 2d graphic programs. oh and MacBooks with 3D cards are called MacBook Pros ...and no sorry they don't have battery sucking video cards designed for gaming...Apple builds computers for grown-ups
    For your interest, there are also 3D graphics designers. While I have to agree that laptops aren't the best platform for rendering these graphics, Apple just doesn't offer any viable products for this special task.

    FACT Apples have always been about the same OR BETTER priced compared to equal PC's

    I don't know why I spend my time on an obvious fanboy, but this is just ridiculous. Do 800+ bucks RAM-upgrades ring a bell?
    And the rest of your FACTs sound just as plausible as Microsoft's 'Get The Facts'
  • by nbucking ( 872813 ) on Tuesday May 20, 2008 @05:48AM (#23472832) Homepage
    nothing. If I can make a machine for under a thousand $ that can play crysis on high with 35 fps (atleast) then why buy a mac? Most people do not need or even want the extras you get with a >1000$ machine. And guess what businesses want (the real money maker)? Thats right the 1000$ machine. So this leaves the cows that want the shiney mac and artists. I have never been impressed by a Mac or a PC. But if Mac really wants into the non fantasy computer world, then they need make there product work on a PC. What with the high gas prices I don't think the cows are willing to go to pasture for these worthless machines anyway. That leaves the artists. And a really serious artist probably needs more than a Mac can provide also. This whole thing seems like a train wreck waiting to happen. If Apple wants to survive then they need to change.
  • Re:You get... (Score:1, Insightful)

    by Anonymous Coward on Tuesday May 20, 2008 @06:29AM (#23473050)
    The fact that when Apple tells Quanta to make 'em a box, they say "Make it good", but Dell says "Make it cheap."
  • Re:Style is money (Score:5, Insightful)

    by Megaweapon ( 25185 ) on Tuesday May 20, 2008 @07:41AM (#23473406) Homepage
    If you buy a pair of ripped jeans which cost you $5 you are cheap and have no style.

    If you buy a pair of ripped jeans for $50 that look like they cost $5, though, then it's a fashion statement.
  • by Bill Dimm ( 463823 ) on Tuesday May 20, 2008 @08:04AM (#23473546) Homepage

    More sales doesn't necessarily mean more profits if those sales are achieved by lowering margins to a point where they need to sell 20 items to make the same as they currently do from one (meaning they _have_ to sell 20x as many, and also cope with 20x the support calls, carry 20x the inventory, etc.) or in the case of a company with a reputation for quality, by cutting corners in ways that result in an inferior product.
    True over the short term, but perhaps not the long term. Market share matters more for computers than for other things. If you have more market share, more people write software for your OS, which increases demand for your computers. Take that far enough, and it becomes difficult for people to buy anyone else's computers even if they want to -- the position Microsoft is in right now. Also, it is possible to target lower price points by reducing features rather than quality.
  • by qazwart ( 261667 ) on Tuesday May 20, 2008 @08:12AM (#23473596) Homepage
    Here's what has been pointed out so far:

    * Apple has such a big market share for the $1000+ market because most PC are cheaper.
    * True, but if you deck out a regular PC to match Apple's specs, it'll be around the same price.

    You're all missing something rather significant. Apple makes very competitive machines, but they don't make all those low or no margin PCs that other manufactures make to boost sales and act as a loss leader for their more expensive models.

    And, because of that Apple is doing quite well. Thank you very much. Apple could greatly increase their market share if they started selling low cost PCs. But, if Apple started doing that, they'd be lowering their profit margins. And, that would make the Apple stores unprofitable. Apple would be forced to close the Apple stores and cut back on customer service in general. That would make Apple just another Dell or HP.

    Compare an Apple store to a typical PC retailer. There are dozens of Macs all running, and they're all connected to the Internet. iPhones and iPods are everywhere. Sales people don't chase you away if you're just browsing. Heck, browsing is highly encouraged. And, salespeople actually know something about the product. Apple service is highly rated by almost all consumer surveys.

    In other words, Apple sells PCs that they can actually make a pretty profit on, and then use that profit to build an image that encourages people to spend the extra dough for an Apple PC. All this makes Apple (get ready for this...) more profitable than any other computer or electronics company - ever. Back in 1998, I bought $1000 of Apple when Steve Jobs took over. I thought I was clever when I sold it after a few months for about $5000. Well, if I was still holding on to that stock today, it would be worth over $1,500,000. Duh! Over the past decade Apple's stock has outperformed Google.

    Whether or not you are a Drinker-of-the Koolade or an Apple Basher, you have to look at Apple as a way to be highly profitable in a commodity business. You don't need a MacBook to appreciate this aspect of the business. Anyone who is interested in running a company should pay attention to Apple's playbook. Apple caters to the higher end of the market, but unlike companies like Bose and Mercedes, which also have a similar strategy, Apple's products are not prime luxury goods that only a few can consider buying. A more significant number is that Apple has broken the 10% mark of market share and is the third largest manufacture of PCs. And, that's pretty hard to bash.
  • by CastrTroy ( 595695 ) on Tuesday May 20, 2008 @08:34AM (#23473770)
    Most people don't really do much with their computers anyway. Read a couple emails, browse a couple webpages. Write up a couple documents. Maybe some personal finance. Most people don't do HiDef video editing, or even run games. I know I don't. I'm perfectly happy with the speed of my $500 laptop running Mandriva (Vista is another story). Most people don't need, or even want a $1000 machine. It's the same reason the Shuffle and the Nano sell so much better than the 160 GB iPod or the iPod Touch. You would think that Apple would have learned from their iPod product line, that some people just want low cost devices that meet their very modest needs.
  • Re:Indeed (Score:3, Insightful)

    by rograndom ( 112079 ) on Tuesday May 20, 2008 @08:34AM (#23473774) Homepage
    Basically if I only get an extra 3-4 hours of work out of a Mac than a windows machine over the course of the machine's life time, it's paid for the difference in price.
  • Re:Free Apple! (Score:5, Insightful)

    by Arkham ( 10779 ) on Tuesday May 20, 2008 @08:37AM (#23473796)

    If you have a recent box, just download and install kalyway or leo4all. Free mac for your PC.
    If by "free" you mean illegal, then sure. You can say the same thing about any piece of software, but most people have at least some reservation about stealing.

    When I was in high school, and even college, I pirated software. But as an adult with a job, I either buy the software or I don't use it. People can make the case for buying a copy of OS X and then using one of the hacked kernels off the internet to get it to boot on non-Apple hardware, but let's face it -- most people who download these iso images are not doing that -- they're criminals.
  • by TheMidnight ( 1055796 ) on Tuesday May 20, 2008 @09:03AM (#23474064)
    I like Macs, but didn't anyone else think, "Gee, all Macs except one cost over $1000. How could Apple have *any* growth in the sub-$1000 market?" Captain Obvious, to the rescue!
  • by stewbacca ( 1033764 ) on Tuesday May 20, 2008 @09:03AM (#23474072)

    The Apple brand is built around the idea that it's a luxury good that only trendy people use
    Wrong, wrong.....soooooo wrong. That's your hang-up buddy. The rest of us are just enjoying well made gear for our hard earned cash.

    - the elaborate Apple stores with the people who fix your computer so you don't have to, the industrial design that looks better than the standard Dell, and the high-end specs and price.
    This a bad thing? This sounds like something I'd be more than willing to spend $100 LESS for (see previous posts about equally spec'd Dells).

    I think you are confusing "luxury" with "no cost cutting". I for one I'm glad there are a few companies out there who design with quality in mind first.

    Then again, what value is my post, being the trendy guy and all (seriously, it's pretty hard to be trendy at age 38 and for 20 years of using Apple products..when does this 'trendy' novelty wear off?)

  • Re:Free Apple! (Score:3, Insightful)

    by stewbacca ( 1033764 ) on Tuesday May 20, 2008 @09:14AM (#23474188)
    You are assuming that the OS is the only reason the guy wants a MacBook Pro.
  • by samkass ( 174571 ) on Tuesday May 20, 2008 @09:22AM (#23474290) Homepage Journal
    "I really think Apple would increase their market share of all systems if they lowered their prices or at least had models that started at lower prices."

    But is "market share of all systems" really that interesting to the industry? If you're a software developer, do you want to sell software to people who bargain-basement shop, or people who are willing to spend more? Apple is a very profitable company, the major third party apps on the platform appear to be profitable, and the community has a huge ecosystem of mom&pop software developers that manage to make a tidy profit.

    It's kind of like a television station that has 60% market share of 20-35 year olds. Sure, that segment is a minority of the population and a somewhat arbitrary gauge of spending power, but nonetheless that television station could consider themselves wildly successful and will probably sell gobs of advertising.

    I think the bottom line is that any software developer who hasn't ported to the Mac yet should probably figure out a path to do so if they want to make some money.

  • Folks, this is the Samuel Vimes 'Boots' Theory Of Socio-Economic Injustice. From Wikipedia (easier to blockquote than the dead tree):

    Early in his career, while he is still a nearly-impoverished Watchman, Vimes reflects that he can only afford ten-dollar boots with thin soles which don't keep out the damp and wear out in a season or two. A pair of good boots, which cost fifty dollars, would last for years and years - which means that over the long run, the man with cheap boots has spent much more money and still has wet feet.

    This thought leads to the general realization that one of the reasons rich people remain rich is because they don't actually have to spend as much money as poor people; in many situations, they buy high-quality items (such as clothing, housing, and other necessities) which are made to last. In the long run, they actually use much less of their disposable income.

  • by bkr1_2k ( 237627 ) on Tuesday May 20, 2008 @09:23AM (#23474322)
    If you have yet to see it actually happen you haven't actually spec'd out comparable systems in the last 3 or 4 years. It's easier now than ever to compare because you can actually buy the same hardware options.

    For fun, here's what I came up with today:

    From Dell: 13.3"
    Alpine White
    Intel® Coreâ 2 Duo T8300 (2.4GHz/800Mhz FSB/3MB cache)
    Genuine Windows Vista® Home Premium Edition
    Standard Display with 2.0 Megapixel Webcam
    2GB Shared Dual Channel DDR2 SDRAM at 667MHz
    160GB SATA Hard Drive (5400RPM)
    CD/DVD burner (DVD+/-RW Drive)
    Intel® Integrated GMA X3100
    Intel Next-Gen Wireless-N Mini-card
    Built-in Bluetooth capability (2.0 EDR)
    10/100 Ethernet
    37Whr Lithium Ion Battery (4 cell)
    High Definition Audio 2.0
    Biometric Fingerprint Reader
    McAfee SecurityCenter 15-months
    1Yr In-Home Service, P+L,24x7 Phone Support
    Included 3 GB DataSafe Online Backup for 1Yr

    Price: $1254

    From Apple: 13" Macbook
    White
    2.4GHz Intel Core 2 Duo 3MB shared L2 cache
    13.3-inch glossy widescreen and iSight camera
    OS X (Panther)
    2GB Shared Dual Channel DDR2 SDRAM at 667MHz
    160GB SATA Hard Drive (5400RPM)
    Dual Layer Superdrive dvd burner (DVD+/-RW Drive)
    Intel® Integrated GMA X3100
    Integrated Bluetooth
    Apple Airport Extreme 802.11n
    Gigabit Ethernet port
    4 cell Li-Ion battery
    Built in Audio
    iLife08--iMovie, iDVD, garageband, iPhoto

    Price $1299

    No the Dell isn't higher priced, but the Apple isn't significantly higher, when you consider the "entertainment"software that it provides that doesn't come with the Dell. That easily covers the $45 price difference.

    Add to that the reliability issues of Vista versus OS X and it's pretty much a wash that ends up being a choice of personal preference.

    The days of Apple being significantly higher priced than the competition are long gone. Now it's just FUD from anti-fanboys.
  • by Firehed ( 942385 ) on Tuesday May 20, 2008 @09:25AM (#23474340) Homepage
    Agreed. I don't even particularly like my MBP's hardware (as compared to when I was mostly-running OSx86 on a ThinkPad anyways), but the software is so much better than anything else I've used and allows me to get so much more done that it's worth the price premium. Which makes sense, as I'm interacting with the software rather than the hardware.

    It's for this reason primarily that OS X will not be licensed for standard hardware any time in the near future - Apple is using their software to sell hardware. Dell and the like are using their own hardware to sell a package that uses software that they largely can't control.
  • Re:Style is money (Score:4, Insightful)

    by aclarke ( 307017 ) <spam@@@clarke...ca> on Tuesday May 20, 2008 @09:35AM (#23474450) Homepage
    Actually, if you buy a $5 pair of ripped jeans then you are a trend setter. If you buy a $200 pair of ripped jeans then you are a trend follower.

    If you wear a pair of hot pink ripped cutoff jeans that you bought for $5 and nobody copies you, then you're just a weirdo.
  • by saterdaies ( 842986 ) on Tuesday May 20, 2008 @10:51AM (#23475612)
    Apple's machines aren't ridiculously priced.

    What is really ridiculous is that Apple doesn't sell a laptop with a slower processor than 2.1GHz. Seriously ridiculous. I can't get a laptop without a high-quality webcam. I can't get a non-pro laptop that has real graphics. I have to pay $200 for a DVD burner because Apple wants to have a "good, better, best" layout. Apple charges $200 for a better looking black case.

    With Apple, it's a game of getting you to buy the highest margin items by withholding what you need. It's bait and switch. Where PC manufacturers give you choices, Apple forces you to buy things that pump up their profits. Where PC manufacturers have sales that give you good deals on soon-to-be replaced models, Apple screws you over as hard as they can.

    And I put up with it because of the Mac OS (user since System 6). Let's not delude ourselves into thinking that Apple's pricing is as fair, honest, and competitive as their PC counterparts. We pay up to use our favorite system. Apple knows that they have something special and they know they can get much greater profit margins because of it and they take advantage of that. Apple isn't evil or anything, but they aren't cuddly either.
  • by MightyYar ( 622222 ) on Tuesday May 20, 2008 @11:15AM (#23476030)
    Their goal isn't to maximize marketshare in all markets - their goal is to maximize profits. In the iPod line, they need to sell low-end stuff to keep the music store viable, and their low-end stuff still fetches pretty decent margins because of the brand name.

    Macs, on the other hand, are a different market. The best they could hope for in the low-end is to become a prettier Dell. I'm a Dell stockholder, and I wish they'd abandon that market to repair their brand name. Dell doesn't have to be cool like Apple, but they need to get the word "crap" disassociated with their name.
  • by cayenne8 ( 626475 ) on Tuesday May 20, 2008 @11:40AM (#23476456) Homepage Journal
    "Which is what people have said for a while now, Apple doesn't sell computers, they sell fashion accessories. Windows users have a tool, it gets the job done, who cares what color it is. Apple users have something they believe makes them morally superior to the afforementioned windows users."

    I'm guessing you have roughly the same opinion of those that buy a Porsche or Vette rather than a Yugo or Prius. They are only showing off their money, right?

    Life isn't all about being practical...sometimes it is fun to blow some money on a fun toy or high performance machine. Sure a Yugo will transport you to the store and back....but, the ride isn't nearly as much fun.

  • by 99BottlesOfBeerInMyF ( 813746 ) on Tuesday May 20, 2008 @11:52AM (#23476648)

    How long will all the other laptop makers be able to hide the losses their "premium" laptops must be suffering because no one wants Vista? While they "race to the bottom" Apple is selling exactly the same hardware for twice as much. The only difference is software.

    I don't know where you get these ideas from. Apple sells higher end hardware and ignores the very low end. For what they offer though, their prices are quite similar to other premium hardware vendors like Sony and Lenovo. Seriously, other vendors aren't losing money or subsidizing their high end offerings. They aren't losing money on them either. They're charging similar amounts to what Apple is. There have been plenty of studies of Apple's margins and they really aren't that far off of other vendors. They're a bit high for towers and a bit low for all-in-ones and the mini.

    Frankly, I'm tired of this unsupported "Macs are more expensive" bullcrap. Macs have fewer offerings than the rest of the companies put together. For what they sell though, they're right in line with other vendors offering similar hardware with similar reliability and support rates.

  • Twice (Score:3, Insightful)

    by simpl3x ( 238301 ) on Tuesday May 20, 2008 @11:53AM (#23476698)
    I think your calculator malfunctioned! Do many Apple products come at a slight premium? Probably. Does it stop me from buying a damn MacBook Air? Nope.

    I have never had a Mac, or any of its associated hardware, die on me, and my son gets the hand me downs pretty rapidly. He just got the year old MacBook. And, somebody else will get that when he gets this... And, on they go for five or six years, until they're in the hands of 5 year olds.

    The difference is the software! But, the hardware is pretty damn nice at times!
  • by 99BottlesOfBeerInMyF ( 813746 ) on Tuesday May 20, 2008 @12:32PM (#23477476)

    The HP model also has a touchscreen, tablet mode, and a fingerprint reader (which if I was a Mac fanatic I would hold out as absolutely critical requirements on the Mac to make a fair comparison, but I'll just discount them as extras).

    You'll never get exact specs, especially if you're trying to use a particular vendor and be careful about price. The HP is lacking a Webcam, Firewire, and who knows what else, but also has some other things you didn't mention. The main problem I have with comparisons like yours, however, are that you don't take quality into account. HP laptops had more than three times the failure rate within the first year as Apple machines did (according to Consumer Reports). Sure they both have 2Gb of RAM, but from what vendor and how reliable is it?

    If you want to do a comparison of an Apple laptop and want it to be meaningful, you really have to compare it to a Sony or Lenovo as those are the only two that even come close when comparing reliability and support ratings from independent vendors. You also can't start with a model form one vendor and try to get as close as possible from the other. You need to look at a few models from each and try to match up the closest specced systems where both parties have a comparable system.

    As to Lenovo, most aren't available with the specs the Macbook has - when I checked their sitte[sic] the most expensive 15" laptop they current sell is about $1200. That in itself represents a very nice advantage of PC laptops: their ability to dial BACK the hardware when wanted.

    Heh. That's kind of funny. Apple is inferior for not having very low end systems in some ranges, but when Lenovo doesn't have a high end competitor in a given size, that is a plus?

    Even comparing feature to feature Mac's usually loose[sic], but it gets REALLY bad when I can choose a little bit slower processor. A little smaller of a hard drive, etc.

    ...assuming you ignore the quality of the hardware and only compare numbers, e.g. a 250Gb hard drive from any vendor is exactly the same as from any other vendor, even when they cost different prices and one lasts twice as long.

    As has been said by others, Apple's main strength is their OS, not their hardware.

    Oh I agree entirely, but that doesn't stop me from recognizing that according to independent testing and evaluation, Apple has fairly average margins for their market segment and some of the most reliable machines from any vendor. They make good hardware, arguably the best in the industry.

    That OS would work fine on budget machines, which is what most people buy.

    It would work as well as any other OS does on crappy hardware (provided it had good drivers), which is to say okay, but seemingly worse than on quality hardware, thus giving end users the impression that it was inferior.

    And when it is stated that way, the truth is I can get a functional Windows laptop for $399. I can't get an Apple one unless I lay down a minimum of $1099.

    Actually you can. if you're willing to buy refurbs. But that is neither here nor there. Apple does not have a machine in every market segment and that is a significant drawback for potential buyers. It is not, however the same drawback as their hardware being more expensive than that from other, comparable, vendors.

    Regardless of specs, the Windows laptop has a far lower entry point, because the people who make those computers aren't forcing you to buy faster hardware that you don't need.

    Your phrasing is a bit inflammatory. No one is forcing you to do anything. Apple is one, fairly small, hardware vendor. Of course they won't have comparable hardware to every other hardware vendor on the planet combined. They already have a pretty broad selection of models for a company their size, with more than twice as many systems as companies like Asus, who have significantly mo

  • Re:Moore's Law (Score:2, Insightful)

    by nostromo ( 1709 ) on Tuesday May 20, 2008 @12:45PM (#23477740)
    the apple one has an led backlight and a 512MB 8600m gt, it also weighs significantly less ....

    instead of the vostro, you should be looking at the m1530 for the 15 inch, for the 17 inch, not really a comparison. (xps?)

    It's a bit like comparing a (Hyundai/kia/lada) to (BMW,mercedes,lexus). They both have an engine and four wheels. but the plastics you touch when you sit inside them, are definitely different.

    But I guess you wouldn't know....
  • by Bassman59 ( 519820 ) <andy&latke,net> on Tuesday May 20, 2008 @01:06PM (#23478162) Homepage

    Yes, "threadjack". That's twitter-speak [slashdot.org] for karma whoring and shilling your own posts.

    You must be new to the Intertubes. Ever hear of "Usenet"? Threadjacking has been around a lot longer than twitter ...

  • by DECS ( 891519 ) on Tuesday May 20, 2008 @02:54PM (#23480168) Homepage Journal
    What's useful about it is that it shows Apple is upselling customers to higher quality computers. HP and Dell make $1200 laptops that compare with the MacBook in hardware features, but they have to sell $700 laptops because consumers want cheap stuff.

    Apple has the market power to push people toward better machines. That results in better profitability, but also higher customer satisfaction, better reliability, and a longer equipment life span.

    Average sale prices of PCs are diving into the toilet, and Dell/HP would like to reverse the trend, but they can't. If one tries to prop PC prices up, the other undercuts them with cheap crap and ends up with "higher market share" despite lower profits (or greater losses).

    That has locked HP and Dell into low profit spirals where they have to support junk instant eWaste PCs that only last for 18 months. Apple is not only maintaining a higher ASP, but also developing a quality brand and rapidly eating into the valuable growth in the market.

    That's also why the fascination with "market share" is pointless. Obviously, Apple's 5% of the world / 9% of the US is far more valuable per percentage point than the 30% shares of HP and Dell. Every new percent Apple adds is a major expansion into greater profitability while the PC makers burn their brands as they turn into profitless Packard Bell junk vendors.

    That in turn enables Apple to invest in developing better software that further differentiates its brand. Low prices are great, but most people don't want to drive a Yugo just because its cheaper.

    Mobile EEE PC, UMPC, and Internet Tablets vs the iPhone [roughlydrafted.com]
  • by theolein ( 316044 ) on Tuesday May 20, 2008 @05:10PM (#23482542) Journal
    The title of this post is sensationalistic, but it should be obvious to even the biggest luddite that the biggest problem that Dell, Lenovo, HP, sony and even Asus have is Microsoft.

    That sounds like the start of another classic Microsoft bashing session, but it's not. The problem that all these companies have is not poor quality hardware, or lack of features, or even ugly hardware (although anyone who has ever opened a Mac tower must realise the extreme amount of thought and work that went into designing the case and the insides). Rather the problem is that all of those companies are dependent on a company that has its own agenda and treats all of its partners as if to only tolerate them, not as if they were valuable in any real way to Microsoft.

    If one of the big hardware makers had the wisdom and the courage to buy up a significant stake in a popular Linux distribution, be it Ubuntu or Suse/Novell, they would be, in the long term in a very favourable position.

    Firstly, consumers don't really care about the OS. They like OSX because Apple pays such an enormous amount of attention right down to the single pixel corners of windows, but the basically just want to surf, chat, work, email, play games etc.

    Apple has been able to leverage its control of both the hardware and the software to deliver a good user experience, and crucually, a stable one with all the tools (and more) that a average consumer needs to use their computer.

    If, say Sony, which puts a lot of effort into the design of their machines, were to say, buy Suse, or simply start up their own Kubuntu based distribution (the KDE 4.1 desktop is nothing short of amazing), and most importantly build up a developer team to start making beautiful but simple to use applications, they would
    a) have the control over what went into the distro nd what not, b) an enormous amount of developer talent worldwide to base their efforts on
    c) crucially, control of their own destiny.

    If Sony were then to preload enough, simple and good apps into the computers, and keep it open enough to encourage others to develop for it,they could very well take Apple on in their own space. And it would grow.

    The sad thing is that none of these companies is able to find the courage or has the vision to build up a long term effort like that,that might very well mean losses over the short term, and possibly even a break with Microsoft.

    None of them will do that. Hell, even Microsoft could do it, if they started their own computer brand. they would lose all their hardware partners within a year, but their hardware in the form of Keyboards, mice and Xbox has not been too bad.

    Ok, back to my beer, now.

E = MC ** 2 +- 3db

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