Merrill Lynch analyst: Apple Mac mini not moving at Best Buy

In its latest report on Apple, Merrill Lynch weighs in on today’s headlines regarding a possible iTunes video store and rumors that Apple might use Intel chips. Also in the report, as noted by MacNN, “Store managers told [Merrill Lynch Analyst Steven Milunovich] that PC users are reluctant to make the switch to Mac and are opting for low cost PCs, such as Gateway’s eMachines. Some store associates said they are at a disadvantage with Macs because Best Buys don’t carry software for Apple, according to the research report. However, the firm says that ‘Mac mini sales appear solid at Apple stores.’ Merrill Lynch reiterated a ‘Buy’ rating with a price target of $51 per share.”

Full article, including the analyst’s information regarding a possible video iPod and iTunes video store here.

MacDailyNews Take: Just imagine: Fred and Harriet traipse on over to the local Best Buy and come this close to having Mac OS X and instead schlep away a pile of Gateway eMachine running Windows. “Gee, Harriet, I don’t see any boxes of software for this Apple thingy. Let’s get another Gateway like the nice Best Buy Boy says. It’s in a bigger box.” It’s enough to make you laugh — or cry — depending on your point of view.

Note: Apple Mac mini units ship preloaded with Apple’s Mac OS X Tiger, widely regarded as the world’s best operating system on the market today including features like Spotlight, Dashboard, Automator, etc., along with Safari, Mail, iMovie, iTunes, iPhoto, iDVD, iCal, iSync, iChat, Address Book, AppleWorks, and more.

Related MacDailyNews articles:
Apple Mac mini now available at 671 Best Buy retail stores – April 06, 2005
It’s official: Apple acknowledges Best Buy to carry Mac mini models – April 05, 2005
Analyst: Best Buy to stock Apple Mac mini, Tiger likely due by end of April – April 04, 2005
RUMOR: Best Buy to sell Mac mini in retail stores – March 29, 2005

90 Comments

  1. From reading these posts about the Best Buy sales force and the customers, I can only conclude that Apple’s biggest problem is trying to sell a computer so sophisticated that it requires far more intelligence to appreciate than most Americans possess.

    MW: basis No basis, it’s just my snippy, arrogant opinion. ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  2. “they put up all English language signage, a circumstance which is not only totally illegal under penalty of prosecution and enforcement”? What the hell is wrong with you Canadian Frogs??????? Why the hell would it be illegal under penalty of prosecution and enforcement? Maybe the US should take the same stance against Mexicans. That would go over like a lead balloon!!

  3. DISMAY!

    The guys/girls that sell the computers only led me to the Windows machines. Stating improved security with the service packs and the additional software needed. Ånd hey, I know people who really like this machines relibility…….good god!

    The walked me away from the mac for this and when asked if the mac was any better……..”We do not use the mac, it seems more difficult to use.” “What is Tiger, again?”

    When I started to educate the salesperson on how to use the computer, I started to see a mindless stare develop. God, will the mindless masses ever learn!!!!!!

    I drive a Mercedes, BMW, Toyota, Cadalliac and proudly buy the cheapest, most unreliable computer on the market.

    Will it ever stop

  4. >Andrew:
    “they put up all English language signage, a circumstance which is not only totally illegal under penalty of prosecution and enforcement”? What the hell is wrong with you Canadian Frogs??????? Why the hell would it be illegal under penalty of prosecution and enforcement? Maybe the US should take the same stance against Mexicans. That would go over like a lead balloon!!”

    That’s just a sad and ignorant opinion that reflects lack of reflection and cultural awareness… everybody should just speak english, right?

  5. think the solution is not to use Best buy. Sales via stores such as Best Buy is needed to get those who normally wouldn’t consider a Mac (and, therefore, wouldn’t go to an Apple store) to see it.

    As detailed above, this obviously isn’t currently working. But that doesn’t mean it couldn’t be effective. Having an Apple rep to train the Best Buy Bozos sounds like a start (the iLife thing should be huge), as does requiring them to carry the Mac version of software…the fact they don’t even know about Tiger is a huge error on Apple’s part.

  6. Most people have no idea what a Mini, Tiger or Apple is. But… they do know what an iPod is.

    If Apple sold the mini as an accessory (ie.Dock) to the iPod, they would probable have better luck selling it to the masses.

    I’ve almost spent enough on iPod accessories that I could have bought a Mini.

    Better yet, bundle them together at a discount.

  7. For all those who say the Mac mini is not a good buy, or for Mac users. I bought one and put in 1 gig of crucial ram at about $135 US. My son is playing war craft on it right now, and I have done several Keynote presentaions with it instead of luging my dual G5 1.8. My teenage kids love it.

  8. Good call, Bandit Bill. The mini could be pitched at those who want an iPod, but have no computer to get songs onto it. “For the price of a second iPod, you can have a Mac mini. And it does a lot more besides.”

  9. Apple should have learned from its experience with Fry’s about resellers. I’ve spoken to former Fry’s salespeople who admit that they were trained to steer people away from the Mac department because there was more profit margin in the PCs and no extended waranty profits in the Macs.

    On the other hand, does Apple really want the kind of people who buy computers from know-nothing salespeople at outlets like BB as customers? I’d be very interested in the level of tech support calls generated by these folks versus everyone else and the word of mouth they spread when they get home and can’t figure the “damned useless thing” out.

  10. When I started to educate the salesperson on how to use the computer, I started to see a mindless stare develop. God, will the mindless masses ever learn!!!!!!

    when the Best Buy deal happened, it was a sign that Apple was ready do whatever it took to improve the Mac distribution. Okay, fine, so you don’t expect the store to be as nice as the Apple Store. It’s a $500 switcher Mac for PC users.. okay great.

    When it comes down to it, there seems to be a large proportion of morons in the Windows camp who just can’t be reasoned with. I loved the description of the sales guy here.. what must he have been thinking?

    ‘Macs don’t have viruese. Zero. I don’t care about SP2’

    BestBuyGuy (You must be kidding, what do you mean no viruses?)

    ‘Macs come with tons of great software preinstalled, like iLife, which is nowhere to be found on the PC side’

    BBG (That’s a program…? I thought it was a preferences panel for choosing the wallpaper..)

    ‘Tiger is on there, that’s an incredibly sophisticated OS, bullet proof and about 5 years ahead of Windows.. Longhorn’s not gonna be until about 2007’

    BBG (What’s Longhorn?)

    Painful that after all the hard work Apple put in to get the Macs into these stores, it’s more fighting against complete morons.

    ‘Ew, a Mac?’

    Yes a Mac, I realize it doesn’t do much for you Service/Support guys, but it does a lot for me, dipshit.

  11. Quebec? English? My, all those Best Buy folks should be shot. We all know that the French language is more precise and allows for more humane exchange of information.

    Hypocrites. We all know that the people of Quebec make it hard to put up English signs anywhere but they darn well better have French everywhere else in Canada!

    Please, quit your whining over there in Quebec. Seceed from the Union already and let the rest of us in Canada improve our collective IQ.

  12. ok, I have beef with Best Buy and there associates….first and foremost, those guys are RETARDS! I have two Best Buy’s near by, one in Colma and the other in San Francisco…again, they are all retards — clueless and passionateless about technology. (they are there simply to collect a paycheck and go home — kinda like Fry’s employees)

    1st) I went to a store to go browse the large DVD collection they have assembled — I have to admit they have a nice DVD library..However, being the Mac nut I am — I couldn’t resist the temptation of visiting my lone Mac bud — Mac mini. As I made my way over the Mac mini display, the first I noticed that no Apple advertisement is evident — however, I did find it and noticed a woman with a young girl were chatting with a BB ASSociate..The young girl was this woman’s daughter — she was asking about the Mac mini and suggesting that since her daugther was in 9th grade, she thought about getting her a Mac mini — I quickly, heard the sale gimp, slam that idea and express why he felt it was a bad idea..I rather not go into dreat detail in what transpired next, but to make a long story short..she bought a HP.

    my second encounter:

    Again, while visiting the BB stores and browsing the TV section..I came across the MP3 section..needless to say the iPod was amongst other MP3 players, such as the Rio, and Zen….I noticed next to the BB computer was another ASSociate and a customer..in his hand he held a Creative Zen — she was doing her best to sell him the Zen ..I listened for a bit and when the opportunity gave, I intervened..I tapped the customer on the shoulder and advised him that he was making a big mistake not buying a iPod..he caved and bought the iPod…..shortly after, I spoke with the ASSociate and she was quick to say that him buying the iPod over the Zen was a mistake…I was not only blown away, but stumped why she would say that…she said, that she doesn’t like to be tied to iTunes — I said, you don’t like to be organized? — she then retorted with, I don’t like the fact, I have to use music from iTunes music store — I said, you can own both a iPod and iTunes never once buy a song from the store — you can use music from Kazaa, Limewire or your own CD’s….needless to say she was quiet..her last comment was that the Zen was easier to use…..needless to go into what I said to her..dumb and stupid these people are.. PEOPLE, if you go shopping @ Best Buy’s don’t count on these clowns knowing there assholes from there eye sockets….go informed.

  13. For those who think there is no margin opportunity in a Mac Mini you are soooo wrong. I would be trying to sell them over PC’s any day.

    I worked at CompuSmart (Canada’s largest computer “ONLY” retailer) for 5 years in retail sales. CompuSmart sells and services PC’s and Macs.

    We had the option of selling Applecare or a SmartPlan extended warranty on Apple products. Best Buy likely can do the same with their extended warrant plan.

    Not only is a Mini an opportunity for an extended warranty but it is an opportunity for margin from the service center with Bluetooth, memory, Airport, internal DVD writer upgrade.

    Other add-ons include a keyboard, mouse, mouse pad, monitor, external hard drive, DVD burner, printer, paper, USB cable, USB hub, surge supressor, blank CD/DVD’s, digital camera, DV camera, external speakers, iPod (with accessories of course) an OSX or iLife manual.

    Should I go on?

  14. said, you can own both a iPod and iTunes never once buy a song from the store — you can use music from Kazaa, Limewire or your own CD’s….needless to say she was quiet..her last comment was that the Zen was easier to use…..

    WTF she didn’t know that you could put MP3’s on the iPod and she works at Best Buy selling Digital Music players?!?!

  15. Best Buy apparently hires only the clueless to sell their computer-related gear. On a recent visit to the local BB emporium where I attempted to find a RED ink cartridge for my Canon i9900 printer, the “genius” on duty insisted that “magenta” was “the ‘new red'” for that machine! Sure!

  16. A rather thick mac using chum of mine once commented that the Apple Cube wasn’t the actual computer, the bit that did the computing was obviously hidden under the desk somewhere. This is the kind of pig ignorance Apple should use advertising to combat, not that Goldblum twat talking in a poncey affected voice about nothing informative at all. Also, if you knew nothing about computers but walked into PC World (in the UK) and you saw shelves and shelves of PC software but only half a dozen sad dusty boxes of Mac stuff, what would you buy computer-wise? Why the f*ck doesn’t Apple ensure all stockists have ring binders (such as those you get in that hell-hole Halfords the car parts shop, which list applications of spark plugs, air filters etc) full of laminated cards listing/detailing ALL the software available for Macs. Without advertising, the thick bastards who don’t hear word of mouth recommendations ‘cos none of their mates have Macs, and also don’t see any ads on TV aren’t going to consider anything but a Wintel box. The majority of the world is made of stupid people who need things explaining to them and until Apple realises that then you’ll never shift Mac Minis in any sort of numbers by just sticking a couple on a shelf in a corner of a supermarket.

  17. If Fred and Harriet go to BB and come back with a Gateway that makes one less furious call from Fred to Apple Support screaming that Apple screwed him big time “It is 4 hours that I try to let the machine get my FLOPPIES but you idiots made the slot too SMALL”

    There’s a reason why people get a Wintel PC: either they are Sputnik with his head why up above the clouds, or they have their heads why up above the clouds. The result is the same: CLUELESS.

  18. ROFLMAO, even talking about Windows and Windozers lowers your IQ:

    “why up” UHUOHHOHAHAHAOEHAHHAOEHHAOEHAOHAOEHAH

    One more proof that Windows is the most powerful virus ever: it attacks your brain cells.

  19. Dictionary
    lowest common denominator
    noun Mathematics
    … derogatory-the level of the least discriminating audience or consumer group : they were accused of pandering to the lowest common denominator of public taste.

    In the good old USA Wal-Mart is the #1 store, teens are culturally led around by the nose by Viacom (Comedy Central/BET/MTV/VH1/Spike/CMT), and many think that what CNN/MSNBC/FNC/CBS/ABC produce is news. People pay $100/month for 250 channels of ‘reality’ shows, old movies and reruns of old network TV. Screw ’em.

  20. So Macs don’t sell because ALL computer sales people EVERYWHERE are total morons and ALL potential buyers (now evil M$ slaves) are too stupid to recognize Macs for what they are. Sure, fanboys. Throw another couple of clichés around. It’ll make you feel better and forever superior. (It won’t sell a single Mac, though. In fact, it is counterproductive…)

    If Apples marketing department thinks along lines like those, it’s no wonder that the Mac is such a small player on the market…

    When is everyone going to realize that the Mac will only sell in masses, once the general public is aware of the fact that they exist and are they are like any other computer, just a better choice for several reasons.

    This ‘think different’-shyte just attracts some haughty wannabe rebels.

    That, and the prices of course. I go to BB, I have $600 in my pocket. What do I buy, a low-end Mac or a middle-of-the-road Wintel? I have to be pretty darned convinced of the superiority of the low-end machine to consider buying it.

    Who’s going to convince me of it’s superiority? Not you lot…

  21. I really think Apple is as much to blame here as Best Buy goons. We all already know that purchasing a Mac over a Windows machine is one that requires a bit of reasonable thought and understanding. We likewise already know that Best Buy goons are — by and large — teenagers or college students who really are ‘passionateless’ about technology, as one poster mentioned above.

    Think about it like this: we’ve all shared the Mac platform with our friends. Now… who are receptive and who aren’t? The correct answer is that those who understand and appreciate good technology listen, even if they don’t already know much (or anything) about Macs, while those who don’t Get It… well, continue to Not Get It.

    That being said, if Apple is serious about shifting Macs (particularly Minis) to the masses, then they should engage retailers and consumers alike. SHOW them why Macs are great. TEACH them at least a modicum about how to use them. EDUCATE them about why Macs really are a better bargain in the long run… etc etc.

    Until such time as Apple does so, Minis will continue to languish on retail shelves. Don’t blame the kid who’s making eight bucks an hour, blame Steve. The kid may not know better but can learn. Steve already knows better (hell, he’s made Knowing Better his life’s work!) yet he and Apple still have not done any better.

    The pretty blue Aqua background doesn’t sell computers. Showing why they are better surely does.

    Cheers,
    adam

  22. People that go to Best Buy generally know what they are looking for – hence the need for only low-trained salespeople.

    Blame Apple!
    Where is their advertising to the masses? Where is their in-store promotion and marketing? There´s lots of room in a Best Buy store to set up a special Apple demo days promotion booth for the weekend. Every seen Apple do it?
    And no Apple omputer-related software….sheesh…..
    And most PC owners do not even think about buying an Apple computer – it is just not on their radar. Kind of like someone buying an electric stove – that gas stove is just not even considered.

    At an Apple store look how many staff there are just to sell one line of product…and I have not been too impressed with most of them…
    (I wonder how many windows PCs Apple would sell if they had them available in their stores…I bet lots of them.)

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