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. I agree with Adam. Apple need to get off their backside and realise that there is an entire generation around that only know Windows. If Cupertino can’t be bothered correcting that, then who is going to?

  2. So Macs don’t sell because ALL computer sales people EVERYWHERE are total morons and ALL potential buyers ….

    Okay, I got about 5 words into your post and knew your game. You’ve got a real whiny attitude and I refuse to ‘read the rest of it’…

    No, YOU decided to put words in everyone’s mouth so you could post that glorious rant. If 90% of the world uses Windows, of course, the implication is not that all of them are retarded. Having 10% of people understand something as ‘hobby-ish’ as computers down to the finest detail is impressive.

    The point is the Best Buy guys were overtly slamming the Mac and lying to the customers. Is this not odd to you? That someone who is paid to sell a particular category of products wouldn’t even know about Macs? The implication that there is no software for Macs? The lower Ghz rating which customers likely look at and walk past?

    Mac users got what they wanted, having Macs in Best Buy is a big deal. It says alot about Apple’s growing mindshare (not just the iPod).. but there’s a long way to go.. since, evidently, the world does not like change…

    No one.. NO ONE.. was making grand generalizations except you. And you only did it so you could write a whiny post.

  3. An incentive for the sales representatives at Best Buy would be a smart move for the company itself. That said, Apple should supply more shelf information especially on iLife. I don’t think there is a single person out there (hardcore platformers excluded) who would resist the Mac OS’ ease of use and software integration if they only knew. It’s the start of something new, this whole Mac mini is the beginning of more things to come. In my opinion, Apple is testing the water to see what works and what sells so that when they have the tactiacal move they want they can take it with assurance that the product will sell.

    Hybrid is right in many respects, we as computer users should not shun the non-computing public. Calling everyone but us fantastic names such as, “moron, stupid, idiot” for not knowing, not caring much is what would make us worse than the people who refuse to look at a Mac because of what it is. There is an untapped market with the general public, many many people would be interested in having a computer to do things for them casually. But therein lies the keyword, casual. For the most part, people do not want to learn, they do not want to be educated, they do not want to have to spend time or troubleshoot computing. While Apple makes the Mac OS very simple, greatt looking, stable and powerful in productivity and usefulness, the fact remains; You still have to figure out how to use the computer.

    Computing is more widespread and more easily accessed and learned these days so it’s good as we move forward to better and brighter things to have people just “know”. Many know that computers serve a purpose, computing is an object oriented task; “I want to do this, I will use this to do that.” Objective orientation. It’s all about where you end up. Aside from viruses/trojans/malware/spyware/keyloggers, Windows OS can do most things Mac OS can, both platforms are near each other in basic operation of what a computer does. The reason people don’t choose Mac are the following; Misinformation about what a Mac can/cannot do, Seeing the Mac as a piece of “trend” hardware/toy, knowing people who use the Windows OS that will sway the buyers decision (it’s a big one to be sure), not being willing/not wanting to learn a whole new syste (while they are in basic form the same, the Mac OS even being easy, is still different and different scares people away often-times). There are other points to be sure but I am just going to cut to the main idea; Either Windows or Mac, “If it gets me to my objective in the form that I want it, then does it matter to me?” This is the prevailing attitude among the average user, the ability to see the Mac OS elegance is a thing of learning, or just simply using as many things are simple and easy on our OS.

    That’s about all I can think of right now, time to sleep! In the meantime, while we may have a superior product, we don’t need to be pompous assholes who suggest to others that ours is the only way. Be kind!

  4. user_01, you forgot another couple of reasons for Windows users:

    Mac has one button mouse: how will I ever learn to work with such a limitation.

    Macs have no games: how could I then use the computer to play? Hence Mac is a toy, not a real computer.

    My friends are all on PCs: how could I send them emails, chat with them, play at the latest FPS with this silly toy.

    I switched tens of people I know. Some are totally utterly unreachable. Frankly… from their reasons and level of understanding it is a relief they do not get it. I would hate to have to pamper them because after a week they are still trying to a Control-Alt-Delete on the Mac or complain why there is not a Start menu so that they could shut down the machine.

  5. Good things to add, iPodder.

    The one button mouse is always a complaint, personally I can’t do w/o my 6 button mouse and it’s ironic that it’s made by Microsoft. People often don’t need that, it’s just what they have grown accustomed to seeing as the normality and therefore anything less is sub-par.

    Macs being without game, and therefore they are toys. It’s entirely ironic, but true, that this viewpoint is often taken. It chafes me to hear this as if games were all of a sudden the ONLY thing people EVER do with a computer. Yet it is always brought forth and suggested that there aren’t ANY games at all. Why buy a computer to play games for the most part anyway, consoles fill that role quite nicely. (yes yes I know Half Life 2 is PC only and not console, is HL2 the only game in existence? Would you buy a computer that costs upwards of $1,000 to play 1 or two games and do nothing else?) I play games, I get most of the games that I want for my OS, what’s the problem? I believe it taps on the same principal that many of our own camp having been voicing lately, that our hardware is outdated and lacking (specifically the cpu) Thata is the “We got it first, we can do this that much faster, we smash your baby toys, nyaaaaaaahnaaaaaaah.” Okay now, lets think about this for a moment; How many people have the free cash to buy a new cpu every time an improvement is made, if you said none then you’d be correct. People in our camp are complaining that IBM is dragging ass on the dual core next generation processors when we already have awesomely quick processors at prices that said users can’t afford anyway! So what’s the point to that? There isn’t one, it’s all a naming game, it’s all about we got it first and we are better and this proves it. It’s one-upmanship and it is RIDICULOUS and utterly meaningless. It will never change as people like to say that they have something that is the best and therefore you should feel bad because your thing can’t do what their thing can efficiently. Basic everyday psychology at work.

    Moving along, the comatability thing is nearly nil at this point in the game. You can find a solution to crossplatform so many things that it boggles the mind. There is jsut what you said, iPodder, lack of understanding and the inability to see it any way other than what they are used to.

    This is why PC users put up with the experience that they do with constantly updating, patching, approving the firewall safety, being bothered by windows that come up on top of everything else making itself a priority because obviously what you were doing wasn’t important. Not to mention updating drivers and BIOS every time you install something (why why why why why, the drivers I can see for printers and the like, but the BIOS is just insulting) Dodge pop-ups with software that you add on “But hey it’s free!!!” I say why need it in the first place? Cleaning adware from your registry, man I am having trouble believing such a system exists now that I think about how bad it all sounds. Yet, it’s all people usually know therefore it is the standard and everything else comes second t it, in this reasoning you start to believe that everything on other operating systems should act and feel the exact same way as on your “standard” system. Oh man I almost forgot, the graphical user interface. Oh boy, this usually gets em’ fired up, Windows simply looks like garbage. There is no looking past it, they try to pass the Mac OS GUI off as being bloated, give mme a break there is no excuse stop tryig to shift focus here. Your system looks bad physically so I guess all of a sudden it makes it somehow “lightwheight and minimal”? Think again, all it makes it is an eyesore.

  6. Forgetting Apple for a second, it depresses me that the public at large seem to look solely at price when buying computers. The cheaper the better. They get dazzled by the low prices then when they find they’ve bought a lemon console themselves with the fact that all computers are a pain to use anyway.

  7. Mike, how you manage to not read a post and yet comment on it is beyond me ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

    You misunderstand my point totally, though. Macs don’t sell all that well and all we get from the fanboys here is blame for some reseller and his employees, as well as simplistic remarks about ‘patchers’ who’ll never see the light anyway.

    Sticking ones head in the sand, there’s no other explanation for that attitude.

    If the patchers (talk about stupid clichés. I run Windows, too and spend most of my time with it working/gaming, believe it or not. Weeks go by that I do not have to spend a single thought on virii and the likes. Of course, on the Mac it’s less than that (close to 0, of course), but if you’d believe what people say here, Windows users spend most of their time fixing problems. Simply not true.) where was I? Oh yeah, if the patchers are really impossible to cure, than the entire concept of marketing is void. That’s a load of BS of course.

    Every consumer out there is potential Mac user, Apple just has to reach them. As the best marketing is mouth-to-mouth, I will not tire of calling the blind fanboys (you know who you are) for what they are. They hamper selling Macs, more than anything else.

    I for one hate that, because some healthy competition for Bill would be good for everybody.

  8. “Mac has one button mouse: how will I ever learn to work with such a limitation.”

    The Mac mini has no mouse. If one is adding the mini or replacing a PC, one would likely have the mouse they prefer.

  9. It would be cool if Apple did like Microsoft does with retail channels- when they launched the Media Center version of XP, they used volunteers to go to all the retail outlets to setup demos and instruct the staff. Retail managers want to move boxes, if you’ll offer to help them they are more than glad to take the help.

    Something like putting the NiN GarageBand track on a Mini and having that running along with a DVD and some photos in iPhoto as well as a iDVD file setup with the NiN track and the photos in iDVD would do wonders for sales. You could show off all components of the system in about 10 minutes and people would love the ease of use vs. Windows – you wouldn’t need software to move boxes, they would move themselves after that.

  10. People who buy computers based on what they think of its users are not looking for a computer. They are looking for social identification. Though such self-esteem issues are common, I seriously doubt someone browsing for computers at Best Buy would look at a Mac and say “Well, I don’t like Mac because all of those assholes who comment on MDN.”

  11. Hybrid: maybe because what you write is out of touch?

    Apple as an increase of sales of over 40% and has been outpacing global computers sales increase. Macs are not selling? Think again.

    The article is about Mac Minis at BB left off the network, without any demo running and with sales persons telling you to buy something else as PC are better and in any case do not know what to show on the Mac.

  12. eff: “The Mac mini has no mouse”

    and the average Windozer will say “Look, they went from a one button mouse to NO MOUSE AT ALL. They are crazy at Apple. I’ll never buy from them”

    Do not underestimate idiocy.

  13. eff, what’s more, denying that a Windows user, for how much s/he could be intrigued by the Mac, could get out of the store with a Mac with sale persons as the ones described in the article, and for the worst commenting that blaming ignorant sales persons for low volume is being a ‘fan boy’, that “Mac don’t sell that well” – ROFLMAO, this is the best one – and that here we should stop “Sticking ones head in the sand” is more than enough to fire up the

    TROLL ALARM

    Hybrid, for a moment I took you seriously. You just made the MDN Troll list.

  14. Speaking of generalization: Hybrid – “So Macs don’t sell because ALL computer sales people EVERYWHERE are total morons”

    HUHOAHAHAHAHHAHOUEHA Are you under the influence or what?

    It is Mac Mini, at Best Buy. Period.
    Mac Mini at Apple Store sells by truck loads.
    The rest of the line grew more that PCs worldwide.

    Apple had stellar results in terms of growth. What the heck are you talking about, TROLL?

  15. iPodder,

    You made 4 comments in 13 minutes with no intervening response from the person you are claiming to be a “TROLL”. I hate the concept of TROLLS myself, but what exactly are you fishing for in your comments?

  16. A little bit extra on a Mac-mini and an eMac is a cheaper and better choice. The eMac’s only dis-advantage is it child-proof-strongness and therefore heavy..
    Apple knows all to good that -a whole computing generation- does not know anything but Wintel. Putting Macs back beside those shiny clumbsy PC boxes does not make sense.. Apple is on the right direction and will never achive more than 15-20% of the marked.

  17. Yeah yeah, attack the messenger, try to throw mud, divert from the issue, it’s the easiest way to stop thinking.

    For a product that is the better of three realistic choices in many ways, Apples marketshare is a joke. That Mac Minis sell well in Apple stores is a given. But to seriously give Bill a run for his money, Mac (Minis, too, or maybe foremost, for they are the cheapest) needs to be sold to people who have another system or no system. What starter is going to walk into an Apple store?

    Which user is NOT going to compare prize first and then benchmarks? 2.5Ghz looks worse than 3.5Ghz. We know that the Mac gives you more instructions per cycle, but why not give that measure when comparing?

    ‘We all simply know that Mac is better’ just doesn’t cut it. In fact, it will turn people away. Blasting BB employees will yield nothing at all. If Macs are better, why aren’t those people in the know about it? It looks like Apple simply dumped the machines in the store, end of story.

    Things sell better if the sales person knows and likes the product. Looks like Apple will need to do some education on that front.

  18. If I go into a Best Buy and play with a Mac Mini, I’m going to walk away disappointed. Its going to be slow because Apple shipped them with 256MB of memory. Stupid on Apple’s part because OS X needs 512MB to shine. First impressions mean a lot. Apple should bite the bullet and make 512MB the minimum.

  19. This problem is totally apples fault. The first issue is apple already has its own retail store, anyone who know macs is going to go there and buy a new computer. Secondly, apple should start some training in the retailers such as BB and offer bonuses for sales people who sell the mini. I don’t know about best buy but a lot of stores that used to offer commissions to their sales staff no longer do that, this would be a huge jump for someone who is making 8 bucks an hour, a $25 bonus for selling a mini, would be half a days pay.

  20. Me? I choose to look at the bright side on this. When Best Buy declares the mini a failure, saleswise, I’ll be able to pick up a mini cheap when they close them out. Heck, maybe I’ll get 2.

  21. Hybrid..you just posted on a Mac message board that ‘word of mouth’ is a good way to reach Wintel users.

    Duh!

    Why do you think Mac users don’t shut up about their computers.. ??

    There are more things in your post that are redundant.. I just don’t have time for such idiocy–your advice is to market to PC users.. gee..no shit..

    You bring nothing new to the table..

  22. The reason the Mac Mini is not moving at best buy is because THERE IS NO ADVERTISING FOR THE MAC MINI. The iPod sells at best buy because it is well known through ADVERTISING!!!!!!!!!!!! WAKE UP APPLE!!!!!!

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