“Apple’s update of the iMac product line this week shows that company is still serious about trying to make money off of desktop computers. But the iMacs, which start at $1,200, aren’t exactly aimed at the mass market,” Jon Fortt blogs for Business 2.0.
MacDailyNews Note: Fortt doesn’t mention that Apple offers the Mac mini with with iLife ’08 and Intel Core 2 Duo starting at US$599.
Fortt continues, “Will Apple’s growth come from desktops? Odds are, no. Laptop sales are growing much faster, particularly among the sophisticated consumers Apple is courting. If Apple can grab market share through laptop sales in the second half of the year, it will be an encouraging sign.”
Fortt writes that Apple could “take the iPhone design, strip out the phone, add video recording capabilities, and call it an ‘iPod camcorder.’ I’d pay a few hundred for one, no question. Will Apple do it? The jury’s out on that one.”
“If the company figures out how to use a successful iPhone to sell more Macs into overseas markets, that growth question will take care of itself,” Fortt writes.
Full article here.
[Thanks to MacDailyNews Reader “Joe Architect” for the heads up.]
It’s fascinating to me how many analysts “know” exactly what Apple’s strategic goals are. Or “should be.”
yah of for that matter how many people actually believe them and mess up apple’s stock.
God damn AnalFysts
Jeeez… Do these guys actually get paid for this crap? Following this analyst’s line of reasoning, we should all be worried about the future of BMW or Bose or any other product maker who doesn’t sell low-end junk. When will these idiots get a clue — Apple doesn’t want to be in the commodity computer business because there is no money to be made there. As both a user and a stockholder, I would far rather have Apple be a highly profitable player with 10%-15% market share, than a company like Dell. And at 15%, Apple’s market share would be roughly triple what it was last year, suggesting there is a lot of upside left to its financial picture.
People selling Apple stock do so at their own peril. Third quarter numbers will include: New ilife and iwork revenue, Apple TV revenue, .mac revenue, increasing notebook and desktop revenue, not to mention the first full three months of iphone. Anybody selling cause they think they made money just picked up nickels and left the dollars on the ground.
This moron does not deserve to write for a “business” magazine, since he doesn’t seem to know much about business. The reason Apple shares are doing so well is precisely because Apple DOESN’T aim at the mass market. That is why they actually make PROFITS on the machines they sell.
Why would they want to sell lots of boxes they don’t make any profits on, like Dell does? We see how well that worked out for them.
While this guys is a total asshat for mis-reporting some facts, I do agree that Apple may be moving towards more mainstream CE products. Remember years ago Steve Jobs mentioned that he wanted Apple to be more like Sony. Now that Sony has lost its shine, it may be time for Apple to pick up that torch and march into the space where Sony once dominated. If they can pull off a cellphone, they can pull off anything. An Apple camcorder isn’t out of the question: Multitouch pan/zoom, 8-16GB memory, plays with iMovie/iPhone/Apple TV, size of a (thinner) Canon Elph. I would get one.
All the above is so true. Dell has to sell computers for $400.00 and include a monitor. Apple sells the base Mac Mini for $599 without any input/output devices, so you do the math on profits! Sure, the minitaurized components in the Mac Mini are more expensive to produce/include, but it’s not that much more expensive. Apple knows exactly what it’s doing when it comes to operating a profitable business, which is all Wall Street cares about.
Laptops are great. But there is definitely a place for desktops that can have much larger screens, better brightness, and no constraints such as energy, heat, or storage. The iMac is the desktop computer for people who like laptops, but want a better screen and system performance for the same (or lower) price. For the price of a 13″ MacBook, you can get the low end 20″ iMac. For the price of even the least expensive 15″ MacBook Pro, you can get the 24″ iMac. I’d say that represents value for customers who mainly use their Mac at a stationary location. I think Apple’s desktops computers will be a source for the company’s growth.
Short post here: Moron.
I think iWork will become the next surprise product for a number of reasons:
• it runs on a G3 up to Core2 (barely useable on a 500 mhz G3 but it runs)
• is much snappier than iWork ’06
• has useable WP (’06 was not)
• acts as a viewer after 30 days
• is downloadable so everyone can try it
• costs about the same as 3 shareware apps
• exports to .Mac in PDF which is fine for most people
• Numbers tips the equation (pun intended) like PowerPoint tipped everyone into Office rather than just Word/Excel
• Office 08 has been delayed
• Office 08 will get us used to not having macros anyway
• Office 08’s extra features over Office 04 (except it is Intel-native) are unknown
• iWork has excellent integration with iLife
• Apple’s consumer customers don’t care do much for Office since their friends will probably have iWork
• all the AppleWorks users will finally have something to more to that is better (for its market).
• the AppleWorks Equation editor runs standalone and the results can be cut and pasted into iWork (or anything else).
• Google has already opened the market to the idea of Office alternatives
Even if successful it won’t make a gent on the Apple share price, but finally remove the “Mac will die if MS stop making Office” issue. If MS did stop making Office for the Mac – likely since it is only one of few apps left – iWork and OpenOffice would easily take over.
In the 1960s IBM got the IT world used to expensive hardware and expensive software. DEC then got the IT world used to cheap hardware and expensive software. Microsoft got the IT world used to cheap hardware and expensive software. Unix got the IT world used to cheap hardware and cheap software. Now Apple is getting the IT world used to expensive hardware and cheap software!
This guy is a clueless asswipe … clueless. Why does MDN bother to post this feces? He speculates that laptops are where the growth is for Apple. Really. So genious! Listen, cluess lilttle asswipe, go flip hamburgers are McDonalds and STFU about Apple. You are an embarassing Master of the Obvious.
I remember when everyone had written Apple off and the stock was in the toilet, I even got upset with my husband cause he was buying Apple stock at prices from $9.00 to $16.00 a share in total he spend like $45,000.00 on Apple Stock. Two splits later and a price of over $100.00 a share, I look back on it and have to laugh a bit. His current target selling price on the first 1,000 shares of that stock is $155.00 per share (this will be a automatic program trade). Currently his estimate is in the next 12 months the price will hit a high of $175.00 if the growth looks good forward the Apple Board will opt to do another 1 for 2 split to adjust the price per share down and to benefit the investors. This will allow the market to rebound back to the +$100.00 level as Apple’s growth continues to move forward. But this is just his opinion and is not market advice.
He writes: “The jury’s out on this one.” Jeez — what a misuse of a cliche.
Why to people continually insist that Apple could create something with almost the same hardware as the iPhone for “a few hundred” and any reasonable amount of storage?
The iPhone costs $500-600 SUBSIDIZED, and the only hardware they could strip out would be the phone and wifi parts, not the most expensive ones like the touchscreen. Most of the iPhone’s capabilities compared to a similarly designed iPod come from it’s software, not it hardware.
How fast will Apple grow? The answer will determine the stock price. The iPod provided a big shot of growth. Now iPod growth is steady (with new versions along the way) but not exponential. The iPhone will provide big growth for a few years to come. The computers will, I thing provide steady, but not exponential, growth.
I would guess that the iPhone will push growth and therefore stock price up over the next year as the US and other markets are exploited. Then it should be priced into the stock price. Then we will have to see how fast the computers and the entire line are growing. The stock price my plateau at this point it there is nothing greating really big growth.
In the very short run, I think the stock price will be pushed down by traders.
I really should proof read before I send.
Not Bill:
We MDN readers have internal spell check whilst we read…
kinda like the iPhone…lol
I have to say, I’d definitely purchase a solid-state, Apple camcorder! They would make it easy to shoot with making all the features easy to access, and you definitely wouldn’t have to jump through any additional hoops to get your video into your Mac (JVC, are you listening?).
Doesn’t sound like a bad CE space for Apple to get into. I only use the camcorder for vacation clips anyway (well, that and updating my porn site. Did I just say that out loud?).
I dunno, kinda like the idea of a ‘cam-corder/iPod/iPhone’ type gizmo
Then pipe it out over wi-fi (or the ‘newer-yet-to-come’ fast cell-network) to uTube via .Mac for instant viewing by others (also using a variation of the new iPhoto ‘Online Album’ but for videos), OR just have it act like a ‘video-conference’ device so as one person walks around with their iPhone they can send a ‘live TV-like Cam Shot’ to someone else, dig ?
PLUS, have it stream downloaded iTunes Store Movies straight to TV as they download for instant viewing.
AND, all this on a ‘hand-held’ OSX platform
Sounds pretty cool to me and very plausible and likely to happen. And will probably include some other features we can’t even imagine at this moment.
So, basically, the ‘desktop’ (as we know it today) will eventually go the way of the ‘Stanley Steamer’.
Apple is bringing to reality the Dick Tracy wrist-watch.
Thank You
BC Kelly
Tallahassee Fla
They have room to advance a lot. Bought four iMacs yesterday for the office. Went to the Eaton Centre location in Toronto today to see what they look like (the order is being shipped to me) and all they had was one 24 inch for display purposes. All of the new iMacs were sold out.
Note to Fighter of Freedom: The iPhone is one of the few that is not, repeat not, subsidized. Apple makes money on every single one of them, and adds yet more revenue from AT&T.
Yes, notebooks are on a stronger growth curve than desktops. Apple and HP will tell you the same thing. But there remains a place for desktops, both for home and business use. Not everyone travels, so for some the desktop is the better value proposition. And here in my very large government agency we buy thousands of desktops every year. Sadly, only a few are Apples.
Please bring back the Cube. I ain’t the only one hoping that.
– Core 2 :: 2,0GHz – 2,4GHz – 2,8GHz
– 3,5″ HDD/Flash memory
– 1GB – ?GB
– 1 16x PCI-E slot (you can go from crap to diamond)
Anyone wanting modern Cube, please end the post with
::: Cube :::
that should give some kind of an idea, how many people would like to have more customisable headless Mac.
iMACs
They are based on laptop components.
Memory, cpu, (HD are different), video cards maybe too… but I don’t think so in the iMAC. AM I WRONG here…. if so OK!
My mind sees APPLES knows what they are doing.
It’s a win win for them… the customer simply picks the design best suited for them. A desktop that is really based on a laptop. SMART.
j