Yesterday, during the conference call following Apple's stellar results for the fourth quarter of 2009, Apple talked about its forecasts for the coming quarter, which included a drop in revenues and lower margins. The web has drawn conclusions that this means Apple will be lowering its prices - but I'm kind of missing where the conclusion comes from.
Post a Comment
Member since:
2005-07-11
...if it could mean a new product which is priced with much lower margins than normal?
Suppose they released a tablet for instance which sells for a much closer to cost price due to competition in the netbook areana?
Just a thought...
I do agree that traditionally Apple does tend to set updated models at the same price as those that came before it, which could incur a penalty from time to time (tech price tends to drop, but not always, especially if adding new components such as BluRay (it could happen) or a new "touch" mighty mouse etc)...
Member since:
2005-07-11
Member since:2007-12-13
It's time for a seasonal refresh of the basic desktops (iMacs) and the mini (which are rumored to have a household server configuration option now), and rumor is the Mighty Mouse is to be replaced (they were sued for trademark infringement on the name, and the design is dated).
There's rumors on other stuff too, but the iMac update is pretty much certain as they are quite regular with those.
Member since:
2007-12-13
It attests to their business acumen. The competition in the low-end is very very high. So high that the margins there are razor thin. Those vendors compensate in bulk, but the overhead for the bulk model is increasing, as is the sensitivity to volatility in supply and part costs. So, Apple's chosen to compete in a different market segment (the higher end) and from a different position (function and form vs. cost-cutting vs. high-end gaming).
It works. Like any good species, it's found it's niche, and one where it has been largely free to operate with minimal competition.
Of course, it's only a matter of time before jealous competitors seriously eye that same niche. There's really not much room left in the low-end of the market, after all -- and Apple's clearly having a party. When that happens, Apple's steam-rolling days will be over and growth will scale back.
I'm impressed with their financials though. 34B in cash reserve, no debt, and their 180B market cap makes them bigger than Google. They're bigger than GE even, and have 75% the revenue of Microsoft despite not having all those enterprise agreements. For a company that was all but dead a 15 years ago, it's come a very long way.
Member since:
2007-01-30
The pipeline just arrived and some products are markedly improved yet markedly cheaper at the same time. Nothing really stellar though, price wise. Except for maybe the uber high-end MBP which saw a $ 1.000,- price drop for the same configuration.
Mind those poor buggers that just bought one a few weeks ago (because I won't) 
Member since:2009-01-06
I have not checked "The Pipeline" yet. At every new en-masse updating of its product line, it seems that Apple has one of the following:
- a new hardware or software design (e.g. MacBook Air)
- more hardware power at nearly same price as the previous generation (e.g. MacBook Pro, iMac)
- an entry level system (e.g. Mac Mini)
One product which appears to not to fit the more power at similar price trend is the Mac Mini.
It might be that the switch to the Intel platform was not conducive to maintaining similar prices to the previous PowerPC G4 generation. Or, that most of the value squeeze over the last few years has been in the area of the display (which the Mini does not have).
Whatever Apple does, it certainly gets noticed.
Member since:
2005-07-12
Member since:2009-03-19
Member since:2005-07-12
Member since:2005-07-06
It's sad that, while Apple is focused on the high-end, they seem to have no interest in approaching the top-end.
They already have competitive prices. Look at the Nehelem Xeon equipped HP, Dell, and Lenovo workstations.
Edited 2009-10-22 02:51 UTC
Member since:
2009-09-24
Back in the 1980's we all accused Apple of price fixing and today we are having the same discussion.
The IBM Pc revolution was born partly because Apple wanted so much for their technology.
I enjoy asking people who made the portable MP3 player... they all say Apple!
~sent from ASUS 1005HA netbook http://bit.ly/44CHFm
Member since:
2006-01-23
As I was reading this, I wondered what changes they would be making. Earlier, I read something about a US$699 MacBook. I couldn't imagine where anyone had got that idea. Apple tend to use higher density LCD panels (MacBook 13.3" panels have been like other companies' 15.4" panels) so that they can't go lower without jeopardising their cost structure.
It was different with the MacBook Pro where they excised the fancy graphics hardware, etc. to create a cheaper model. The low end MacBook really had nothing spare to remove.
It reminds me of those rumours of the dual G4 PowerBooks. If one runs hot, surely they can put two in there and it'll be just fine.
Member since:2006-01-18
It was different with the MacBook Pro where they excised the fancy graphics hardware, etc. to create a cheaper model. The low end MacBook really had nothing spare to remove.
It has you still can go down with ram, apple has upgraded the ram, you can make the display even smaller and you can leave out the nividia graphics chip.
Also you can move towards atom processors.
Now how much fun it is to work with such a machine is questionable, but there is a load of room for cutting down costs even on the macbook.
