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Price copetition
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m_sessar
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Sep 8, 2003, 05:15 PM
 
I had macs for 12 years and love them.
Although I am really tired sticking up for it and
Every time I try to talk someone into buying a Mac the Dellcheap always steer them away with the perception they are getting a better price.
Does anyone have any idea what is an Apple policy in this price war?
Why can�t we have a price competitive machine? I mean a $499.00 stripped down that can compete and maybe help gaining up from the 3% market share?
     
thunderous_funker
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Sep 8, 2003, 05:19 PM
 
The only 2 companies making a profit in the PC business are Dell and Apple. Think about this for a while and the answer might occur to you.

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m_sessar  (op)
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Sep 8, 2003, 08:01 PM
 
I can assume that it�s Apple strategy to make money but I thought that the switcher campaign was all about gaining market share.
If buyers are still price driven�?
     
dampeoples
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Sep 8, 2003, 10:16 PM
 
Originally posted by m_sessar:
IIf buyers are still price driven�?
Then they get a $499 PC, have to deal with viri, IE, a computer loaded with AOL ads, etc.

The eMac is $799 I think
     
biposto
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Sep 9, 2003, 03:33 AM
 
Originally posted by m_sessar:

Why can�t we have a price competitive machine? I mean a $499.00 stripped down that can compete and maybe help gaining up from the 3% market share?
Yes, a lets say barebones system, like the Shuttle's, would be something for Apple to gain more marketshare.
Maybe not for 499 but if they can make it for around 650-699 they would sell a bundle of it.
You could add your own monitor of choice.
Some of my friends look at my Apple systems and say "that looks and works nice, how much $ is it?"
When you tell them the price they seem into a shock.
     
businezguy
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Sep 9, 2003, 06:45 AM
 
I don't think a company with a 3 percent market share and a "non-standard" operating system should attempt a price war with Dell. That does not make sense for the future of Apple.

The essential problem is computers are quickly becoming commodities. Apple needs to avoid allowing their own segment to go that route, if possible.

There are people willing to pay the "extra" money for these machines. Apple only needs a certain number to do so, not the entire market. You have to consider that these prices are what is allowing Apple to drive forward with their R & D. They can't be like Dell and allow other companies like Intel and Microsoft to do the R & D for them.
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Parky
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Sep 9, 2003, 07:00 AM
 
I suppose you could apply the same argument to Car manufacturers.

Why don't BMW make a cheap 3 series?

For one simple reason, that is not the maket they want to be in. It would lower the quality of the brand, and take away from the profit making expensive models.

It is the same with Apple.

By making a 'cheaper' model, Apple would gain some sales, but they would also loose quite a few of their current eMac and iMac sales to the cheaper (and non profit) model.

It would also give the wrong impression to the market and quality would drop.

Apple sells a premium product and it should stay that way. What it needs to do is build on it's sales by better advertising, more outlets (the stores are great) and our support.
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Sep 9, 2003, 07:52 AM
 
Originally posted by businezguy:
I don't think a company with a 3 percent market share and a "non-standard" operating system should attempt a price war with Dell.
I really hate it when M$ is refered to as standard. I mean I get it, I know what you are saying. And the idea of a standard, in the sense that what most people use is valid. But, I always understood a standard to be a mutually agreed upon way of doing something or like the metric system, well, to the rest of the world anyways. I don't think there was a mutually agreed consideration for Windows, it evolved to be the platform that the magority of people use and thereby default has become the "standard". If a it were a "standard" then if should not be operated by a single company, but open to the world, which it, of course, is not. Of course this may just be the a time thing and changes may occur down the road. Anyways, just needed to vent, always errs me, you know.

On topic, I have looked at these 399 and so computers, pretty stripped down machines, start to customize them and your not let with that price. And if you do get the 399 machine, you'll be upgrading and/replacing it sooner than later.
     
biposto
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Sep 9, 2003, 09:13 AM
 
Originally posted by Parky:
I suppose you could apply the same argument to Car manufacturers.

Why don't BMW make a cheap 3 series?

Actually they will release a compact hatchback in the near future under the 3series.Mercedes did it with it's A class.And Porsche did a right move with it's "cheap"boxter.
To stay in car brand talk, maybe apple should do what volkwagen is doing besides their different brands (Audi,Skoda,Seat) and that is give excellent quality for a competitive price.
Does apple want a bigger userbase besides the 3% it has now? if the answer is yes, they will have to do something price wise cause people wont switch that easy.But maybe Apple is happy with that 3% and doesnt feel the need to make it closer to 10%
     
Parky
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Sep 9, 2003, 09:37 AM
 
BMW and Mercedes do both have 'cheap' models, but that is only compaired to other BMW's and Mercedes.

The 'A' Class is very expensive when compaired to other cars in the same 'car' class. In the UK a base 'A' class still costs �5000 more than an equivalent model made by all the other small car manufacturers. I owned an 'A' Class for over 2 years and it is not a cheap car to buy or run. Mercedes also make a good profit on the 'A' class, which would not be true for the more 'commodity' based computer industry.

Therefore these 2 manufacturers are not making cheap models, just smaller one's.

I currently own a VW Lupo, the cheapest car they make, and while I am very happy with it, it was still over priced compaired to other european brands.
Not only that it seems that the quality of VW cars is falling (measured in a recent car survey in Europe), maybe due to the cost cutting they are doing at the moment.

Apple could do that if you wanted them to, but you would basically get a very cut down machine, that would not be capable of doing all the great digital hub things.

In effect we already have the 'A' Class of the Mac range, it's called the eMac, but it's not as basic as it could be. If you made an even lower spec and priced eMac would people buy it?

I suspect not, as consumers have a 'minimum' expectation from computer manufacturers, and a cheap eMac would fall well below it.

Also bear in mind that there is far more scope in the car field to make changes to configurations and designs. it was more and analogy rather than a direct comparision.

Would Apple really sell more computers if the made a $500 model?
What sort of people would buy them? Won't these buyers be expecting to find Windows on their machines, so that they can use all their illegally obtained software?
People who are looking for sub $500 machines are looking for computer access on the cheap, and will not expect to invest in software and add-ons, etc.

A cheap Mac would not serve these people well, and I'm sure Apple does not want the support issues and 'pain' that would be generated.

Macs are for diserning buyers / users who are looking for something different, that reflects their individuality and that is more than 'just a computer'. Buying a Mac is a lifestyle choice, just the same a buying better brands of cars, clothes, food, etc.

Macs are bought by individuals, PC's are bought by the rest.

Finally maybe Apple don't want to be in the 'cheap' PC market. If I was Steve I'd be more than happy to be seen as the Mercedes of the computer industry.
( Last edited by Parky; Sep 9, 2003 at 09:49 AM. )
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biposto
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Sep 9, 2003, 10:56 AM
 
If you look at the mother company of mercedes, daimlerchrysler, you see that the crossover of technology, quality components are starting to show up in lets say chryslers.
The thing with cars is, they are more status bound, thats not so the case with personal computers.People want to do their thing on a computer, without problems, most of them anyways.
I think Sony is doing a good job with their Vaio line, good design, specs and prices.
Again, if Apple wants a bigger user base (and i think they want that cause why else did they use the switch campaign) you have to get people who are using window systems, and a big market is around 6-700 and below and apple doesnt have anything in that region, they really need a headless i/eMac in their consumer line if they want more users.
Some pro users started to leave the power mac line and went to the intel platform for the raw power, lets hope they come back now the g5 is here.
It's apple's choice really, what do they want, this 3% or more market share.
     
Parky
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Sep 9, 2003, 11:03 AM
 
They want more market share, but in the right sector.

They don't want the cheap 'non' branded PC switchers. They want switchers from Sony and Dell, who both don't make 'cheap' machines.

I also think that Mac users do see thier machines as a status symbol, that is the whole point wanted to get across about the 'lifestyle' choice.
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biposto
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Sep 9, 2003, 12:00 PM
 
I dont see my mac's or pc's for that matter as status symbols or "way of life" but as a tool, sometimes the pc format gets my favor, sometimes the mac, depends on my needs.
As for cheap Sony pc's
NEW! VAIO Digital Studio� RS Series Desktops
RS300 Series
Starting at $599.99

And sure, maybe the specs or not top of the bill, but not everyone needs that.
     
stefls
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Sep 11, 2003, 12:22 PM
 
Originally posted by biposto:
I dont see my mac's or pc's for that matter as status symbols or "way of life" but as a tool, sometimes the pc format gets my favor, sometimes the mac, depends on my needs.
The world could use more people like you for that matter . This would force companies to fucus more on creating a better product (in an ethical way...) instead of making people believe certain (sometimes even technically lagging) products will make their lives complete.
Too many have been seized by this 'Apple way of life' or the way of life created by any other over-hyped big brand.
The undersigned included, to a certain extent that is... Aaah, I love my iBook; it's twice as slow as my friends same-generation Sony, but since OSX and the iApps increase efficiency by a factor at least >2 ...
     
Eriamjh
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Sep 11, 2003, 12:53 PM
 
Mac's hold their value a lot longer. They start higher and they stay higher. Even 4 year old G4s are still selling on ebay for $400 or more. What 4 year old PC is worth $400?

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videian28
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Sep 12, 2003, 08:57 AM
 
emac for $799 yes, pc for 400

the difference? you can upgrade that pc
     
   
 
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