Dell cannot compete with Apple’s new Mac Pro price or feature set

“If you caught the Mac Pro’s introduction during last week’s Worldwide Developers Conference keynote, you know that Phil Schiller, Apple’s senior vice president for worldwide product marketing, punctuated his demo of the new high-end desktop by uttering the ‘D’ word—Dell. Specifically, Schiller brought up Dell to compare its price to the standard 2.66GHz Mac Pro Quad’s $2,499 price tag. By Schiller’s math, a similarly configured Dell Precision 690 would run you $3,448—around $950 more than the Mac Pro,” Dan Frakes reports for Macworld.

Frakes reports, “That’s an eye-catching figure, especially in light of the widely held perception that Macs are more expensive than their PC counterparts. But is it an accurate figure? To double-check Apple’s math, I went on a virtual shopping spree. My mission: configure a Mac Pro and a comparably-featured Dell model and see how their prices measured up.”

Frakes found that “the significance of the Mac Pro, from a price perspective, is not that it’s debatably price-competitive with somewhat similar offerings from Dell (and other Windows-PC vendors); rather, it’s that the Mac Pro is the first Mac in a long, long time that is unquestionably less expensive than its Windows counterparts in the same market segment.”

Full article, with price breakdown chart showing an Apple Mac Pro that’s US$1,347 less than a comparably-equipped Dell (plus the Dell can’t run Mac OS X) here.

Related MacDailyNews articles:
Microsoft Windows five times more expensive for users than Apple’s Mac OS X – August 15, 2006
Apple Mac Pro with/ 20” Cinema Display less expensive than Dell Precision 690 sans monitor – August 10, 2006
Bear Stearns: Apple’s new Mac Pro, Xserve pricing well below comparable Dell systems – August 09, 2006
Apple cuts prices across entire Cinema Display line – August 08, 2006
Dell warns of earnings miss; shares plunge 15% – July 21, 2006
Survey shows big jump in consumer interest in buying Apple Mac; Dell takes steep slide – July 06, 2006
The Wired 40: Apple #2, Microsoft drops to #36, Dell falls off list – June 28, 2006
Time Magazine on Apple’s 13-inch MacBook: ‘Dell and HP should be very worried’ – June 07, 2006
Apple passes Dell in market value – May 02, 2006
Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006

44 Comments

  1. Throw in a Windows XP Pro license and the Apple is STILL cheaper. Running OSX and Windows in one beautiful box (for those that need to)… is there really a choice here? People just need to taste OSX, then they’ll be hooked.

  2. The article did not even include a monitor for the Mac. nor did it compare equally priced CD/DVD drives.

    and then the dude shamelessly talks about Maximum Ram? Go ahead and add the prices for the Ram to your final price list. Infact pick the same for both then see the price difference.

    and by the way Adding the “Maximum Ram” suggested to the price bumps it up by $5400, for the Mac Pro, thats already way beyond the $3,048 priced out for it.

    Sorry but this article is misleading. Go to Dell online and go to apple store online and price these bitches out with comparable devices!

    When i did it it was for the 3.00 Ghz Xeon processors and they were ~equally priced with the apple being only slightly higher.

    Hooray for apple equally pricing their products!
    ( or is it? )

  3. Steve Jobs said the decision to go to Intel was based on a FLOP/WATT ratio. Claiming that IBM could not make the performance to power ratio.

    I think they used a price/FLOP ratio. And it may pay off. As long as Intel is able to offer one or two “premium” performance CPU’s that are on par with everybody else, this will be a good long term plan.

  4. I hate to say this, but the Dell includes a $250 Dell 19” UltraSharp 1907FP monitor, which I guess you could purchase and use with the Mac Pro; Apples 20″ Cinema Display is $699. They should do something about they’re display prices. They didn’t figure that into the price. Please don’t shoot the messnger.

  5. Indeed… Said..

    “And the Dell comes out with the HIGHEST price…

    http://systemshootouts.org/shootouts/desktop/2006/0809_dt3200.html

    And the Mac Pro comes with a 20″ Cinema Display even and still cheaper!”

    Care to tell me why in the final price list the author of that article decides to charge 2 Xeon processors upgrades when no other website does that when they compare the 690 against the Mac Pro?

    On System Shootout website:
    For the DELL
    Base system price: $1,579
    2.66 GHz Dual Core Xeon upgrade: $520
    Second 2.0 GHz Dual Core upgrade: $869

    For the MAC PRO
    Base system price: $2,124
    + 2x 2.66 GHz Dual Core Xeon Upgrade: $300

    Do me a favour try pricing it yourself, TODAY. I cant even find a Xeon 2.66ghz 690 on the DELL website all they have is 3.00 GHZ and up.

  6. Will somebody please tell me why Macs don’t come with more RAM?? I find it frustrating that although I am willing to put down $2500 on a new MacPro, I have to spend an extra $300 for 1 Gig more RAM, and $1100 for 2 more Gigs! WHY??? Anybody??

  7. Dear AL,

    The RAM prices are as such because like ipod gear “THAT’S HOW THEY GET YOU”

    Bais/Bias.. dude you cant spell, but you do have a point.

    Thanks for wasting our time cause we still are going to get an Apple, becasue in the long run Macs are cheaper to maintain.

  8. Care to tell me why in the final price list the author of that article decides to charge 2 Xeon processors upgrades when no other website does that when they compare the 690 against the Mac Pro?

    Care to tell me what is the point of comparing a single Xeon Dual Core processor price with a Mac Pro that HAS two Xeon Dual Core?

    What’s the point in comparing Apple to a Banana?

    If you want a 690 with TWO Dual Core Xeon as the Mac Pro those are the prices.

    Comparison is with EQUALLY (to the best match possible) configured systems, otherwise what is the point?

  9. “Will somebody please tell me why Macs don’t come with more RAM?? I find it frustrating that although I am willing to put down $2500 on a new MacPro, I have to spend an extra $300 for 1 Gig more RAM, and $1100 for 2 more Gigs! WHY??? Anybody??”

    I can’t think of any reason other than Apple’s marketing strategy, which is based on fixed price points for each of their systems. They don’t have to do what Dell does, which is to change pricing literally every day. Try pricing the same system on different days (sometimes even hour to hour on the website), and you will see significant changes. Dell does this to balance inventory of components in their buid-to-order system. Apple’s manufacturing is note really BTO.

    This is especially relevant to memory, because it is priced as a commodity, with pretty significant changes possible in short periods of time. Apple doesn’t want to have to factor volitile memory pricing into their costingof systems, so they keep it to a minimum. This let’s them keep the price of a system steady for long periods of time.

    By the way, this also let’s Apple increase their margins during a product cycle, as the processors of a given speed get cheaper in its life cycle. They then upgrade to a faster CPU at the original cost of the earlier processor, and the cycle begins again.

    Compare with Dell, where you can probably still buy a 1MHZ pentium for dirt cheap, if you want it. (No, I’m not going to check Dell myself)

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