Linked by Thom Holwerda on Wed 18th Feb 2009 14:36 UTC
Apple With the economy in decline, many fear that the one company to take the financial blow would be Apple. The company focusses on the higher end of the market (at least in price), and with many people having less and less money to spend, as well as facing insecure financial prospects, people may decide to choose for a cheaper, non-Apple computer. Piper Jaffray, an Apple-friendly analyst firm, has projected that the Cupertino company is about to face a decline in year-over-year Mac sales; for the first time in six years.
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Profit Margins
by gfacer on Wed 18th Feb 2009 15:41 UTC
gfacer
Member since:
2005-11-10

The one thing I don't get is that Apple could easily put out a netbook that had great margins and still was a great deal cheaper than what they offer now....it might not give the users the experience that Apple wants them to have. But why not let the customer decide?

Reply Score: 2

RE: Profit Margins
by PowerMacX on Wed 18th Feb 2009 16:40 in reply to "Profit Margins"
PowerMacX Member since:
2005-11-06

Something to consider is that "Apple is losing sales by not having a netbook" is not in and on itself a good reason for them to have one.

Why? Because an Apple netbook would canibalize sales of their notebooks to some extent. They must have figured out that selling more low-margin machines simply wouldn't compensate the decrease it would cause in sales of their high margin notebooks.

Reply Parent Score: 2

RE[2]: Profit Margins
by kaiwai on Wed 18th Feb 2009 20:15 in reply to "RE: Profit Margins"
kaiwai Member since:
2005-07-06

Something to consider is that "Apple is losing sales by not having a netbook" is not in and on itself a good reason for them to have one.

Why? Because an Apple netbook would canibalize sales of their notebooks to some extent. They must have figured out that selling more low-margin machines simply wouldn't compensate the decrease it would cause in sales of their high margin notebooks.


Highly unlikely - that would be like saying the eee pc has canabalised the asus higher end laptop sales, which it hasn't.

If Apple included a bare basics cut down operating system with an easy to use UI, maybe touch screen navigation; there would be no cross over. The netbook would be a targeted simple device with a set number of things it can accomplish whilst leaving the more expensive ones open to the more flexible needs of end users for general computer needs.

Reply Parent Score: 3

RE[2]: Profit Margins
by segedunum on Wed 18th Feb 2009 23:53 in reply to "RE: Profit Margins"
segedunum Member since:
2005-07-06

Why? Because an Apple netbook would canibalize sales of their notebooks to some extent.

That's the point I've made above, and how Apple has always thought. Why bother selling a computer cheaply when those same people could be spending more on something more expensive. The problem is that that is always a low volume market (more cheap stuff gets sold, suprisingly) and more at risk when people just stop spending at all on higher priced goods.

Reply Parent Score: 3

RE[2]: Profit Margins
by dagw on Wed 18th Feb 2009 23:59 in reply to "RE: Profit Margins"
dagw Member since:
2005-07-06

Why? Because an Apple netbook would canibalize sales of their notebooks to some extent. They must have figured out that selling more low-margin machines simply wouldn't compensate the decrease it would cause in sales of their high margin notebooks.

So make a high margin netbook. I've said this before, but I'll say it again. Take the Macbook air, shrink it to a 9" screen, chuck in an Atom CPU and a fast SSD drive, make sure it gets a great battery life and add an iPhone like touch screen. If Apple made a laptop like that I know I'd buy it, and I'm not even an Apple fan.

Reply Parent Score: 2