“After seeing how well equipped the updated Macbook Pros are I decided to go and compare them to comparable Dell machines. To my pleasant surprise the Macs are substantially cheaper,” Sean Balsiger reports for Newsvine.
“I took a quick look at the Dell store and found the Dell Precision line to be closest to the Macbook Pro line. It is their high-end line of notebooks. I started out with the basic 15.4 inch model and upgraded the Dell to match the standard features [of] the Macbook Pro,” Balsiger reports. “Final Price – Apple: $1,999, Dell: $2,874.”
“This brings us to the comparison of the 17 inch models,” Balsiger reports. “Final Price – Apple: $2,799, Dell: $4,142.”
Balsiger writes, “The myth that Apple computers are more expensive than PCs need to end. They have proven that they are committed to selling well-equipped computers at reasonable prices. Now people just need to take the time to compare the systems and realize that with a Mac they are getting a better computer at a better price with a better operating system, and if they don’t like Mac OS X they are still better off to spend hundreds of dollars less and buy a copy of Windows for their Mac. Is there really a reason to stay on PCs anymore?”
Full article here.
MacDailyNews Take: “Is there really a reason to stay on PCs anymore?” Well, Sean, we never had a reason for PCs at all, but, since you’re asking: No.
What we said would happen (here, for one of many examples, and as early as June 2005 here) is happening already: the PC box assemblers are feeling the heat, it’s Microsoft’s turn next.
And who on earth is not going to like Mac OS X? Even the most severely Windows-dependent seem able to see the quality difference.
Related articles:
Fortune compares Mac vs. Dell: ‘you’ll get more for your money with Apple’ – September 11, 2006
PC box assemblers like Dell and others wish Apple would license Mac OS X – August 31, 2006
$399 for Windows Vista Ultimate?! (Hint: Get a Mac) – August 29, 2006
AP: Time to think different, Apple Mac beats Dell on price, software compatibility, and more – August 23, 2006
Thurrott pits Apple Mac Pro vs. similarly configured Dell, figures out the Mac is less expensive – August 18, 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
Time Magazine on Apple’s 13-inch MacBook: ‘Dell and HP should be very worried’ – June 07, 2006
Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006
Apple CEO Steve Jobs’ ultimate goal: ‘to take back the computer business from Microsoft’ – June 16, 2005
5 years ago I bought my kids a cheap Dell because there were no comparable deals available from Apple. I’ll never make that mistake again.
I wonder if Dell is stuck in the “loss leader” quandry: they have to support their super-cheap-end business (those lovely $299 machines you can never seem to actually buy for that price) by jacking the prices of their high-end machines? If so that would explain why they end up charging so much more for an equivalent machine at the high end.
Either that or–gasp–Apple is actually better at manufacturing efficicencies than Dell!
Well he messed up of the video card comparison but he got the rest of it right.
Now the question is do I need this first class piece of machinery.
mw- party…!
I think John is bang in the money. Dell are supporting loss-making garbage with the price of their high end machines. Jobs said long ago that Apple’s manufacturing efficiency was already greater than Dell’s (Fortune article, Feb 2005) and now he’s starting to turn the screw. Dell have nowhere to go.
This is all one of the most extraordinary pieces of business strategy that we’ve ever witnessed. It’s chess. It’s WWII. It’s like a masterplan was laid down in about 2000 and slowly but insuperably it’s all coming to pass….
I assume Microsoft is the eventual target (“they just have no taste. And I don’t mean that in a small way…”). That battle could be a bit more bloody…
Dells are ‘cheaper’ than Macs. Macs are ‘less expensive’ than Dells.
Let’s get it right MDN.
Apple’s strategy might well confine Dell to a bottom feeding box assembler. But who knows? Dell might succeed in that market. After all, as P. T. Barnum said, there’s a sucker born every minute.
This is great and all, and I love to see Apple beat others on price in the high-end area… but:
-Where is Apple’s competition to the 15’4″ Inspirons, etc. They need a 15.4″ MacBook (not pro) with a comparable feature-set.
I’m currently in the market for a 15.4″ notebook and I look at MBPro for $2000 and then I look at Dell Inspiron 15.4 (specced out to the top) and there’s still about a $500 difference. I know I get OS X, better hardware, etc., but I just can’t justify spending $500 more on something I can get for less.
What I would like is a MacBook 15″ wide-screen with a stand-alone GPU (for some Windows games) and an expresscard slot. But Apple won’t seem to do this b/c they have the MacBook Pro for that. So then they need to put in more features on the Pro models like include more RAM standard (more than 1GB?) and make more GPU memory standard.
But I’ll still be waiting out till January to see what we can get.
Al
My sister can’t see the difference. She hates the Mac, loves the Windows platform. I gave her daughter a iMac with Panther installed. My niece loves it, but her mother can’t stand it. (I think my sister has to much education of the wrong kind
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A friend just bought a new HP notebook to replace his 3 year old HP notebook that crashed on him. He was all excited about some of the features like the DVD drive that can print on the DVD (until he priced the cost of those) as well as a remote control that fits in the express slot. I tried to talk him into a Mac and he was close but the HP was like $800.
Granted, HP probably made only $15 bucks on this machine but I’d like to see Apple find a way to get into the lower end without sacraficing profitability. The iPod shuffle was able to compete on the low end but that was by removing features and shrinking form factor — that won’t work in the notebook world. I just don’t know anyone that would actually spend $4,100 for a Dell notebook.
so now Apple is being a cheap product huh?
it’s no longer classy and luxurious.. just cheapo trying to get market share?
I did a comparison yesterday of the MBP, an Alienware and WidowPC. All 17″, all very comparable.
The Alienware came in at $300 over and the WidowPC came in over a G.
If you install XP with Bootcamp the MBP still comes in under the Alienware. IF you install Vista WHEN it comes out with the Ultimate package, the MBP is only a hundred over.
So how do I convince my die hard “We will never use fruit” windows thumping fiance and her entire family that macs are better without sounding like I’m preaching and shoving it down their throats?
Simple. Refuse to do system maintainence.
” width=”19″ height=”19″ alt=”smile” style=”border:0;” /> Say that keeping up with Windows vulnerabilities is too much work.
Oh, I forgot something. To make comparable machines the Alienware and WidowPC were maxed or nearly maxed on their features available. The MBP had more upgrade options when it came to RAM and HD and etc…
MacSweep…When Leopard comes out…install it in your sister’s daughter’s machine. Show her Time Machine and Spotlight. That ought to be enough. If not…she’s too far gone.
iSteve…. The problem with lower price points is that they are unsustainable if you want to produce a truly high quality product. You can get a REFURBISHED macbook for an astonishingly low price. Great machines. Look it up.
utzaki…. No. Not a cheap product. They have a greater manufacturing efficiency and have consequently been able to offer their higher quality products at a lower price. They are NOT the lowest of the low.
They make a better product, have a better operating system, have more and better bundled software, have better customer support, have a better forward looking development path and a commitment to quality and taste that no other computer company has. Game over.
Blooregaurd,
Just wait until there PC’s start having some problems, and quietly inform them that the Mac does not have this problem. Then periodically show them some of the cool stuff OS X can do like Expose, or Dashboard. Over time they will get the hint. I also like to use the argument that no one wants to buy a appliance (refrigerator, stove, etc.) that crashes, or in any way does not work as advertised, so why would they use a computer that did not work the way it is advertised.
Cheers
Magic Word: Help
As in, it is your job to help them see the light.
It is interesting that Jobs is using Dell’s own business model against them. Dell backed itself into a corner that it can’t offer the high end cheaper because it has to make up for the loss leader that is the cheap PC. Leave it to Apple to turn a company’s asset into a liability. It is truly business genius.
sorry, its their, not there.
MDN needs an edit button.
Cheap is Cheap—Less expensive is Less expensive.
Words mean things.
MW–english, don’t you just love it? SB capitalised.
Miyaco…
I’m constantly doing that with my fiance, since I live with her and get to see her Dell constantly crashing everytime she runs IE… In fact, I have had my G5 up for 25.75 days and everytime I hear her restart i tell her that on the side… All that happens is that she gets mad at me. Her fathers’ computer is constantly having issues like freezing, overheating, losing files, and all of the other banes of windows like not being able to create a file sharing network easily… So I bring over my G5 and clamshell iBook (with 10.4.8 installed on both) and set one up in ten seconds. They still won’t ever touch it. Even after they KNOW that it’s better, they swear they will never use a Mac… I’m running out of ideas here…
Blooregard325i, i have found that a supportive and understanding tone has done more to convince friends to try the mac than any hard sellling. after they try, that support goes a long way to keep them on the platform. it’s all about the experience. when friends tell me about their os problems, i don’t berate them or ask about the symptoms or details of the problem. instead i try my best to be compassionate and ask important questions– such as, “wow dude that sucks, did you lose anything important?”
i think it is more effective to talk about the things we share as opposed to our differences. when someone see anything i’ve done- dvds, movies, pages material- the quality and polish of the finished product is usually enough to pique their interest. i casually mention the application i used and when they try to find it later, it’s invetible that they will discover it only exists on the mac.
i have learned over the years that the worst way to convince anyone of anything is by telling them they made a bad choice. i don’t make people wrong. i don’t tell people i am the answer. i am just a finger pointing to another option.
and yes, i totally refuse to do any maintenance on a pc, “i’m just not that smart.”
I like my Alienware, my chosen hardware inside puts me in between the Macbook and Macbook Pro, but cost me less then the Macbook baseline. Core 2 Duo, DVD burning (Superdrive for you mac heads) and ATI X1400 128MB Video, and a 15.4″ 1280×800 Widescreen all for $1083 shipped.
The speed is nice, battery is good, and gaming is awesome. Would I like a Macbook Pro? Nah, hate the aluminum and the price is just way more then I would ever pay for a laptop I would want to replace in a year. Still though, nice upgrades apple!
Beryllium wrote…
After all, as P. T. Barium said, there’s a sucker born every minute
TRUE …but a growing number of those suckers are getting smarter – fast!
And there not going to stand for Dell’s crap much longer!
Not when theirs a twofer out there that half the price!
I think these examples are a little far fetched. Dell’s retail MSRP’s are always inflated, and rarely what customer’s actually pay at checkout. Dell heavily relies on a never-ending stream of big coupon discounts to give customers the impression of getting a bargain. Dell’s final discounted prices are closer to the actual MSRP’s of Apple products.
There are a lot of people who will pay over a grand for a PC. I talked to a guy at work last week. He has a G4 PB that his college gave him. He’s got to give it back but he hated it anyway.
He bought a cheap PC and is happy with it. Wants to get a laptop too. I told him about the intel macs and his choice to run windows if he wants. He still thinks they are too expensive, but maybe I got him thinking.
However price is an issue for many people. The question is should Apple go for that segment. Dell have been successful in taking that market, but since then have reduced profitability and facing stiff competition with HP.
Apple entered the MP3 player market with a high priced unit. Once it took off, they introduced cheaper models including the shuffle. Now high volume makes them unbeatable in price and features.
I think that is how Apple will go with the PC market. Once they get higher volume sales of MacBooks etc they will be able to drop prices simply because the component parts will cost less.
They will add features that no other PC maker has (already do, but the differences will be greater). Lower prices and improved features will aid Macs intaking market share, but without the need to provide cheaper, at cost PCs, in the clearly now futile attempt to gain market share.
Better that Apple have 10 % market share (6% in US now) with 30 % profit margin, than 20 % share with 10-15 % margin.