Linked by Eugenia Loli-Queru on Sun 12th Sep 2004 07:33 UTC
Fourteen months ago I wrote an editorial, suggesting that Apple should create an ultra cheap machine to battle the PC world. On that article, I suggested some specs for the hypothetical "Strawberry" computer. As technology is moving on fast, I am now updating these specs. To get the idea though, please make sure you read last year's article before you read on this one.
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apple needs to address the lower end of the market but not in this way.
this strategy would canibalize a lot of other sales and that is too risky. Furthermore, there is no evidence that suggests that Apple (not someone else but apple) could sell more computers at $299 then at $499, or $799 so why go with such a low price.
It is best for apple to continue to do what they are doing.
* increase value of platform via OS X and peripherals (ipod)
* go after higher margin markets (enterprise, small biz, research)
* include computing power in next gen iPods or other consumer device and keep scaling up in capabilities.
* gradually reduce pricing across the boards
* introduce a single processor pro machine for $999 (later)
* Introduce this eugenia machines for circa $500-600 (later)
apple lost the pc race. they can still win the next series is they try and that series consists of changing the nature of computing, which is happening.