Linked by Thom Holwerda on Tue 25th Nov 2008 22:45 UTC
Apple Apple isn't exactly known for catering to the lower end of the market, but so far, it doesn't really seem to have slowed them down much. They are selling more Macs than ever, and especially in the ever-growing notebook market, Apple is very successful. However, with people all worried about possible economic downturn, and with the success of cheap, small laptops (netbooks), people are starting to speculate if Apple will enter the netbook market.
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Bad news
by bolomkxxviii on Tue 25th Nov 2008 23:09 UTC
bolomkxxviii
Member since:
2006-05-19

Apple cannot win in this effort. They cannot/will not sell a netbook around the same price as a lot of the current models ($500 range). I would expect something around $750 -$800. All this will do is cannibalize their low end macbooks. The best thing Apple could do is to stay out of the market.

Reply Score: 8

RE: Bad news
by dagw on Tue 25th Nov 2008 23:45 in reply to "Bad news"
dagw Member since:
2005-07-06

All this will do is cannibalize their low end macbooks.

Not if they differentiate the products well enough. for example the netbook will have a 9" screen, a small solid state hard drive and a slower processor. That in itself should be enough to differentiate the products.

I'd imagine that for every cannibalized macbook sale, they'll get at least one customer buying their first/only Apple laptop or a an existing apple customer buying a second laptop. I have no interest in buying a macbook, but would definitely be in the market for an Apple netbook.

Reply Parent Score: 3

RE: Bad news
by binarymutant on Wed 26th Nov 2008 00:11 in reply to "Bad news"
binarymutant Member since:
2008-11-11

very true, Apple is notorious for charging too much money for their hardware. I'm sure if they did try to enter the market they would sell it for a grand and market it as the Gucci of netbooks like they do for all their other products.

Reply Parent Score: 3

RE[2]: Bad news
by Soulbender on Wed 26th Nov 2008 09:28 in reply to "RE: Bad news"
Soulbender Member since:
2005-08-18

Im sure if they did try to enter the market they would sell it for a grand and market it as the Gucci of netbooks like they do for all their other products.


Which is exactly the point. Apple wouldn't have to be cheap, they sell on the brand name. You don't buy Gucci because of the quality, you buy it because it is Gucci. It is by no means crap but you an easily get the same or better quality cheaper with other brands. No matter if we like it or not, brand names sell products.

Reply Parent Score: 3

RE: Bad news
by rajan r on Wed 26th Nov 2008 10:59 in reply to "Bad news"
rajan r Member since:
2005-07-27

By that stretch of logic, brandless OEM netbooks would have led the market. Instead, more expensive Netbooks from Asus, VIA, MSI, Acer and the like seems to be leading the way.

The Netbook market isn't completely price sensitive. It's just a different market - light, highly-portable, small laptops with a small price tag. Because of that, Apple has a competitive advantage here, having a strong brand (notice, for the likes of EeePC, MSI Wind, etc., the netbooks were better designed, aesthetically, than their larger, fully-equipped cousins).

Secondly, Linux seems to be somewhat successful in the Netbook segment, but extremely so in comparison with Linux on desktops and laptops. It shows the market is willing to accept a non-Windows system in this segment, as long it performs basic functions consumers want (web browsing, email, basic productivity software). Something OS X can easily fill, especially with a much faster Snow Leopard.

Right now, netbooks are undifferentiable from each other, something very much akin to the MP3 player market when iPod entered. I think Apple can be very successful in this market, and with its brand, I think they could easily get away with higher margins than Asus or MSI.

Reply Parent Score: 1