Bear Stearns: Apple’s new Mac Pro, Xserve pricing well below comparable Dell systems

“Bear Stearns analysts Andy Neff, Bill Hand and Ted Chung sent a note to clients on Apple Computer’s (AAPL) new product announcements yesterday,” Seeking Alpha reports.

Key points from the note:
• Some investors came away disappointed given the lack of any surprises (i.e., “one more thing”), we believe that the compelling pricing of AAPL’s new Mac Pro and Xserve was overlooked. Contrary to the popular belief that AAPL’s Macs are premium priced and above its major Wintel competitors, our analysis indicates that AAPL’s pricing of its new professional systems are well below comparable systems from DELL.
• Priced at $2,499, AAPL’s Mac Pro is 28% less than the comparable system from DELL (Precision Workstation 690) which is priced at $3,471 (see detailed comparison in full article).
• Priced at $2,999 for the base model, AAPL’s Xserve is 10% less than the comparable system from DELL (PowerEdge 1950) which is priced at $3,333… AAPL’s Xserve comes with an unlimited client edition of its [Mac OS X Tiger] operating system, while DELL’s MSFT Server 2003 edition is limited to 5 client seats. (see detailed comparison in full article).

Full article here.

[Thanks to MacDailyNews Reader “LinuxGuy and Mac Prodigal Son” for the heads up.]

MacDailyNews Take: Comparable Dell? Fact: There is no such thing as a comparable Dell box to any Apple Macintosh. Dell PCs are OS-limited and cannot run Mac OS X and best-in-class Mac-only applications like iMovie HD, iDVD, GarageBand, iPhoto, iChat, Safari, iWeb, and so much more. Why would anyone settle for only being able to run some programs when Apple Macs can run them all?

Related MacDailyNews article:
Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006


  1. I think so, Gregg. Steve has commented about Apple’s mistakes in the past, one of them being their failure to pursue market share. Apple is very profitable now, so this seems to be a push to raise numbers, temporarily sacrificing a few bucks.

    Hope it works!

  2. Unfortunately, I’m not sure lower prices for the new Apples means Dull is “f****d”. What it probably means is that most IT shops will not buy anything until Dull lowers prices to meet Apple.

  3. Posters mentioning the MS licensing issue raise a vital point. Apple’s going with multiple CPUs, not just multiple cores, is a clever move. If MS wants to hurt Apple’s sales of multiple CPU Macs, it will have to change its licensing policies and lose a lot of profit. I suspect that is why there are no low end Mac Pros with a Conroe CPU.

  4. Apple is very profitable now, so this seems to be a push to raise numbers, temporarily sacrificing a few bucks.


    Or maybe Intel is pissed at Dell because of their AMD deal and is offering these chips at a discount to Apple. Plus Apple doesn’t have to pay any licensing fees to MS.

  5. MDN, most of your Takes are good, but this is just another one for the wastebin. This article is clearly about the “hardware”. The OS is secondary and not the focus of the value calculation. The OS only becomes important when the hardware is in the hands of the end-user, at which point another level of value is realized (for Mac users).

    I have to strongly disagree with the above statement, especially when you are talking about servers. The OS can easily end up costing more than the server itself if you have to pay for a license per seat.

  6. macnut manages to be right and a little wrong all at the same time.

    MDN should nitpick, but not on dumb ass subjective crap that nobody really cares about – unless they’re unbelievably anal – but on real information that makes a difference.

    The Dell server in this article is packaged with a copy of Microsoft Windows Server 2003. BFD. With Windows Server 2003, I can file documents, print documents and run a simple web server. With OS X Server – as it currently stands – I can file, print, run a mail server, run a webserver, run a blog server, deliver multicast streaming media and I get a semi-reasonable firewall as well.

    Come Leopard Server, with built-in Wiki, Cyrus IMAP server and iCal server, the Xserve will be more like Small Business Server 2003, which costs a darn site more.

    You don’t seem to be able to buy SBS 2003 as an OEM install option from Dell’s website, so let’s start with a raw system at $2,544.

    Add in a copy of SBS 2003 with 5 CALs and that’s another $1,300.

    So now we’re up to $3,844.

    Now, let’s go back to the unlimited license advantage of Mac OS X Server.

    The average business in the USA has about 27 employees, if memory serves. So that’ll be 30 CALs required. We already have 5 to begin with, so we need another five 5-user packs. That’ll be $2,250 thanks very much.

    So, a 30-user system on the Dell side will cost you a minimum of $6,094 – let’s call it $6,000 for cash. And the Xserve will be $3,000.

    Now admittedly, both machines will need more RAM and more disk space to cater for 30 users. But given that the Xserve is starting with a $3000 advantage, I’m thinking that’s not going to be much of an issue.

  7. And a quick question to end…

    Why would you spend 50% more (and that’s only at the front-end and that doesn’t include anti-virus software, cos I’m being generous and I can’t be arsed to do the research) to land up with Windows and Dell.

    Are people really that stupid?

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