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Apple’s problem – $elling Mac$

Posted by Edward Domain in Uncategorized | 6 comments

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STILL, less than 4% of computers worldwide are Macs. I dislike that fact, because Macs are just as good as PC’s, in my opinion (not better, but just as good). They also help the world move forward by coming with a huge psychological awesome-factor that, among other things, prods companies of all kinds to improve their designs (just so their products aren’t forgotten), and think with a more long-term, “futurist” mentality. (they also inspire the people who get them to clean their rooms and houses! Dead serious.)

The Apple guys should have figured out by now that they can’t just conduct business-as-usual, if they want to become huge… (people have been banging on their doors for years to JUST… TRY… SOMETHING… DIFFERENT to help Macs become more widely used)…
Try things like, as I see it, lower their stinking prices, since it seems to me that all the world’s people:

1) already WANT a Mac… but,

2) don’t want to pay 2x the price of a PC for one. (and then you can’t just upgrade it, in 2 years… If you want to move up, you have to buy a whole new one)

Average Cost of ‘Desktops’ (as opposed to laptops):

PC: $550 (but most lowest-end PC’s don’t come with monitors, so, let’s bump this up to $700). So:
PC: $700
Mac: $1,543

Average Cost of Laptops (which many idiot manufacturers have been forever trying to rename to “notebooks”… even more retarded now that there are the infinitely-confused “netbooks”)

PC: $700
Mac: $1,515

Even the Mac Mini – the cheapest of which is $600 – will actually cost close to $1,000, after you buy its missing screen, speakers, keyboard, and mouse. (probably bringing the average Mac’s cost up) There’s nothing “mini” about paying $1,000 for a computer with less than half the power of an equally-priced PC (and that $1,000 is for the lowest-end model only, which is EMBARASSINGLY low-end). You need to understand the magnitude of fail here: $1,000 will almost allow you to build TWO ‘Crysis’-capable PC’s. (almost! Don’t go telling your friends 2, now) (n00b note: a ‘Crysis’-capable PC is a computer that can run the almost photo-realistic video game, Crysis)
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This pic I made below shows what I think MOST of Apple’s problem is… (but reaching a lot further than just Macs, since I firmly believe that price is Apple’s alpha limiter in almost all fields).







You can see Dario’s blog here:

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  • Jeb

    I held out for 10 years… Just bought AND LOVE my Mac Book Pro. But talk about missing a key chance to up-sell software. Once my SA identified I was a PC user, they should have definitely talked me into MS Office… Huge miss there. Using a free trial now.

  • alkurta

    I've got nothing against Macs, but I am a gamer. I like to play games on the PC.

    Also, I didn't know you could build a Crysis capable PC for so little money.

  • Marc

    Apple could really care less about selling more Macs, their margins on the quoted 4% of the market share they have is exceptional! Surpassed Microsoft in market cap value patly because of this.

  • edwarddomain

    You know that is a really good point Marc. Apple controls the hardware and thus their fortunes- I have seen OS X made to work on some home made Apple knock offs but OSX would have to boot from a CD!

    Since OS X only runs on Apple hardware- they can control their profit margins but you would think they could lower the price a bit and gain more market share and make up the difference.

    I know I'd like to pay less for my Mac :)

  • http://www.IndyGeek.net John Fox

    Apple doesn’t want to gain market share as much as protecting it’s identity as a company.  The identity it has, and how the public perceives it, is vital to its success as much as the products it sells.
     
    You mentioned that you can make a ‘homemade Apple knock off’s’ and that’s fine for what it is.  Keep in mind that when Steve came back and took the reigns of control from Gil Amelio, who was ruining the company as evidenced by the sharpest decline in revenue the company has ever seen, he nixed several things from the company’s line of products.  One of those products, or by-products as it were, was the licensing of technology to third-party hardware manufacturers.  When Apple was doing this, it saw a record three-year low stock price among other crippling company financials.
     
    Giving the keys to the Apple kindgom – it’s hardware and intellectual property – to third-party companies has historically proven to be Apple’s fatal flaw.  Why else would the company run such a tight ship when it comes to proprietary information?
     
    I think the reason that Apple is able to charge the prices it does is because of the consumer myth that because it’s more expensive, it’s better – better quality, easier to use, does more, makes me a better person, grows back all my hair, etc.  Granted, there are consumers who enjoy the value of what an Apple product will do for them (as evidenced my recent personal blog post on http://www.techyuppie.com).  Then there are those that delude themselves about how much better the product is because of the apparent hefty price tag that accompanies it.  Price is only part of the equation.  Then there is the faction of people that I call Apple Elitests.  Those are the people that choose an Apple product because of the fact it’s an Apple product.  They care not of the cost, the use, the functionality or anything else of substantial consequence.  People who know me often hear me say that if Apple were to make a product called the iTurd, people would by it because the name begins with ‘i’ and it has a shinny Apple logo on the bottom.
     
    In the end it’s all about perception and value.  I use several Apple products: I use a MacBook, an iPhone and I am soon to be the proud owner of both an iPad and Apple TV.  Generally speaking, I don’t think there’s any advantage to owning one over the other, except of what fits my personal needs.  Apple products fit well into my lifestyle and I’m ok with paying the prices they charge.  But by no means does that make me a fanboy.  I am just as happy to use a Windows machine or a Linux box and have done so many times in the past.
     
    What makes sense to me may not make sense to someone else.  What I can’t stand, however, is when people bash the other products in all seriousness because of something *they* don’t like about it.  But then again, consumerism is all about personal choice.  That’s what makes the economy a free market.
     
    PS – The Apple market share, as a company across all product lines and not just desktop computers, is closer to 6% and some say as high as 8%.  4% is an extremely conservative figure to quote, seeing as how Apple has managed to penetrate every sector of the hardware industry.

  • alkurta

    Hi all,

    I had to chime in again.

    I am learning how to develop iPhone apps so I had to buy a Mac Mini.

    I realize the name 'Mini' is in its title, but I was quite surprised at how small it is. A little over 1 inch tall and having the footprint of a small dinner plate.

    I've had it for 2 weeks. Overall impressions: My life has not been changed. Its a computer. With a different operating system. And a slightly different UI.

    Better or worse than my Windows 7 machine? To be honest, neither. The user experience is pretty much the same. My Windows 7 machine is for gaming. The Mac Mini is for app development.

    The one little thing I really like is the 'Dashboard' app. You click on it and it shows you the time, the forcast, a calendar and a calculator. It's a small thing, but indicative of Apple's passion for an excellent user experience.