“Apple is no stranger to AT&T subsidies. It makes far more than $199 on iPhone unit sales in this country because AT&T is sending roughly $375 more Apple’s way in exchange for every two-year data plan commitment that is tethered to the smartphone purchase,” Rick Aristotle Munarriz writes for The Motley Fool. “Why can’t it do the same for its MacBooks?”
“MacBooks start at $999 these days. How well would Apple fare marketing $600 or $700 MacBooks that are tied to data card contracts? It would certainly be one way to respond to the country’s growing fascination with dirt-cheap netbooks at sub-$500 prices. It would also reach a crowd that would be more likely to pay $60 a month for connectivity than someone looking at an entry-level netbook,” Munarriz writes.
“Apple can’t sit quietly and let netbooks with Microsoft and Linux operating systems swipe market share. It may be too late for this holiday season, but if Apple isn’t readying an entry into the netbook market itself, it may as well take advantage of the same AT&T subsidies that shot iPhone sales to the next level this past summer,” Munarriz writes.
Full article here.
“Why can’t it do the same for its MacBooks?”
I believe that is because as Steve Jobs said, that market is not the focus of apple.
This idea might makes sense, if Apple was having trouble selling the new unibody aluminum MacBooks for $1299. Apple is not.
I think Apple already has plans for the so-called “netbook” market, with a different NEW device. And it probably involves a partnership and subsidy plan with AT&T;and other wireless providers worldwide.
CARS….. Why doesn’t Apple and AT&T;get together and sell a $4000 car.????? They could use On-Star (GM might not be using it much longer
” width=”19″ height=”19″ alt=”grin” style=”border:0;” /> ) and charge for a 4 year plan. ?????
Yea, AT&T;selling cars. Cheap. Sounds like a plan.
(This time of the year the crazys really come out. LOL )
Just a thought.
en
“Apple can’t sit quietly and let netbooks with Microsoft and Linux operating systems swipe market share.”
Ah, I think Munarriz has got this backwards because it is Apple who is swiping market share.
because ATT sucks? working with them on iPhone deals as an AAPL employee is like having your teeth pulled…and besides netbooks are horrible and not worth consideration. I bought one just to see what it was all about and the thing is horribly slow (3 minutes to launch an office app in XP!) and the keyboard is small enough to be useless. Nice try”fool”, better luck next time.
This will turn Mac products into commodities, which as far as I know, is still not Apple’s goal. This is just like that Asus One netbook selling for $99 on a 2-year contract. Disgusting!
Apple needs to avoid becoming synonymous with AT&T;. At some point, AT&T;will realize that the success of their business is largely dependent on Apple, and they may be tempted to launch a corporate takeover, which would be a disaster for Apple.
Also, AT&T;is not equipped to provide support to Mac users. All they know is Windows.
I prefer the sale of entry-level Macs at Wal-Mart, instead of selling them through AT&T;.
Subscription Subsidies? Bah!!! It goes against that whole total cost of ownership strategy.
I hear we might be having to subsidize some newspapers soon though.
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Main problem with this scheme is that the lowest level MacBook with a card slot is the MacBook Pro at $2000. Secondary problem is general stupidity.
I would pay full price for an iPhone if I didn’t have to get a data plan (don’t live in a 3G coverage area, think it’s silly to pay for something I won’t be able to use) Love the iPhone, hate the plan.
I like the idea, if only they can fix all the above objections, especially high data plans.
Or create an iPhone family data plan or something…
I prefer the sale of entry-level Macs at Wal-Mart, instead of selling them through AT&T;. — An Optimist
If that’s the height of your optimism, sucks to be you.
Because all you said up to that point undermines what you say you are.
So many just don’t get it. Apple doesn’t turn out junk or budget PC’s.
This kind of thinking would instantly erode Apple’s money making business and the business would collapse like a Michael Dell run box maker.
If you want a BMW, don’t ask them to produce a Yugo and brand it for you as BMW. Quality costs. Buy a Del if you can’t afford a Mac.
Right on lurker!!
AT&T;and their terrible, over-priced user plans are a DRAG on the iPhone. Apple should license visual voice mail and sell the damn things unlocked.
Unlocked? Yeah, like just phones are sold everywhere but here.
So. partnering with AT&T;on the netbook FAD really gives Apple nothing, except to sell a few million more copies of Mac OS X, which would give the cheap or poor a real taste of a superior and functional operating system.
Apple making and selling netbooks is akin to a test program for Mac OS X. What’s the point? Mac Netbooks would be very expensive advertising, I say!
Have you actually used a netbook?
What’s the advantage? SMALL, you say?
UGH. They’re like Fat Ugly Blackberries. Clunky, limited, inelegant junk.
Where’s the quality in a mac? The aluminium case is just a weak attempt to difference the machine. As for inside, where are the parts better then say the ones Sony puts into its notebooks or even HP for that matter? Somebody please tell me?
To me, it seems this ‘quality product’ thing is just a delusion that fanboys have gotten themselves into believing to justify paying much more for a computer that, apart from OSX, is really that special or remarkable anyway.
If somebody else ever manages to wise up enough and vertically integrate their products (rumor has HP looking at its own linux OS for its machines) and actually not concede the niche ‘smug, elitist’ or ‘cool because I think I am unique (using products that a growing number of people use)’ market to apple, it might be interesting and do wonders for apple’s pricing (talk about trying to bilk your customers!!). But, at the moment, seems only Apple is smart enough to do this.
As for the car analogies, where apple is a mercedes and a windows machine a toyota or whatever. This is nonsense. What makes a mercedes different is mercedes engineers its parts. There are few common parts in a mercedes and a toyota. Apple has many bits that come from the same bins as everybody else. So apple is not the computer equivalent to a mercedes. Its more like the computer equivalent of a lexus: a toyota with delusions of grandeur. Or maybe even closer to a camry with delusions of grandeur?
Why doesn’t Apple team with AT&T;to sell $600 MacBooks? Because it’s bad enough that Apple has to team with AT&T;to sell iPhones, that’s why!
Where’s the quality in a mac? —PT
What, are you NUTS???
How well would Apple fare marketing $600 or $700 MacBooks that are tied to data card contracts?
Terribly.
If you’re gonna have a computer tied to a contract, it might as well be an iPhone.
One, Apple is not competing in the netbook market, so it can’t steal share. The netbook is stealing share from the sub-$1000 laptop market. Apple is gaining market share in the $1000 and up market.
Second, to those who want a cheaper data plan for their iPhone. I have a $20 plan, because there is no 3G within 100 miles of me. Of course, when I am in 3G land, i get 3G reception, but I only pay $20 for my data plan, with 200 sms. Talk to AT&T;, you may be able to get the same plan.
Toyota rocks. Just sayin’.
Toyota = Japanese Chevy. Just sayin’….
As for Apple, if they really want to enter the $600 market, they need to do it without subsidies or subscriptions. Nobody wants to be shackled to yet another damned service contract.
You can engineer a case. You can engineer a motherboard. You can engineer an OS. Apple is the only company that does all three.
Most laptop cases are engineered by the Chinese Assembly companies that make the laptops. Most motherboards are engineered by Intel or AMD. Most OSs are poorly engineered by Microsoft.
That is the hardware difference.
Then all of your parts that you say come from the same bin, only come from the same bin when they go into a Mac. Apple only uses parts that meet their performance, environmental and/or reliability standards. Then they tune their OS to the small subset of parts that they use.
Dell, HP and others get their parts from the lowest bidder and change their sources of parts 3 or 4 times in a model run. The lowest bidder, not the best provider of any particular part. They use anything that’s cheap and blame Microsoft for the incompatibilities that their cheap parts create. Of course, Microsoft blames the manufacturer and nothing gets fixed.
As far as your car analogy goes, Apple’s Mac is any finely engineered auto, even some Big 3 American vehicles would apply.
Your typical PC is a Ford Pickup frame, anything from Kia to Ferrari body works, a 3 cylinder diesel locomotive engine running on used cooking oil, a transmission out of a ’38 Chevy and Sherman Tank tracks stretched over over the wheel hubs. It does have nice upholstery though.
Apple brings greater brand value to AT&T;, not the other way around. Poor quality of service wouldn’t be blamed on the lesser brand, it would perceived as a weakness to the more superior, Apple.
The iPhone is forcing At&T;to upgrade its cultural value and services to maintain its position in the market. We all know, Apple doesn’t need them, Apple could easily release an open phone to would work on a 3g network. Increasing the ubiquity of the iPhone doesn’t harm Apple as long as they continue to innovate the product.
@PT
Yeah, just throw in an OS a bunch of parts and there you go.
What you then have is a piece of crap.
HP are going to put out a PC with their own version of Linux.
Oh, I really cant wait for that little disaster to happen.
Hey PT, OSX isnt ‘just’ an OS, its THE frickin’ OS, and it didnt take a bunch of geeks at HP a couple of months to ‘just’ put it together.
PT – hmmm – does that mean you think the PT Cruiser is a good car?
Nuff said.
I note how the author of the article mentioned ‘dirt cheap’ netbooks. Now, think of Steve, take a deep breath and think of his oft-stated philosophy; Apple doesn’t do ‘cheap’.
And you know, if you really want a $600 MacBook, there’s always eBay, third party resellers and Apple’s own refurbishment store(!).
I honestly don’t see Apple offering a computer at $600 unless it’s second hand. Price perception is everything, and if they did that to the MacBook, how long before you think people would clamor for $800 MacBook Pros and $900 MacPros?
Plus, at a time like this I doubt Apple want to send a message to its investors and shareholders that it’s panicking for customers.
Afterall, Apple DID, and IS, growing from maintaining their pricing strategy so why should they abandon it?
Leaving the MacBook, MacBook Pro & MacBook Air lines as is makes sense for all the reasons stated. Introducing a new line called something like MacBook Mini or MacBook Net would allow Apple to sell a quality product for less than $999. Get them in the door for $600 and eventually they’ll be back for the $1,200 MacBook. I love my 12″ PBP — a smaller, thinner, lighter model from Apple would be great. I don’t need FireWire or a card slot. Just give me a device with a bigger screen than my iPhone where I can edit iWork documents (or Google Docs). I can’t justify $1,200 on a new MacBook – that is a lot of cash for a 2nd computer (main is a 20″ Intel iMac). The trick is not to make a cheap product but a great product affordable.