Why should Apple cut Mac prices 25 percent?

“The timing is perfect for Apple to cut Mac prices and dramatically to increase its market share. If Apple made that seemingly radical decision, the MacIntosh could easily move out of single digits of market share,” John Dodge writes for SmartPlanet.

MacDailyNews Take: That’s a strange Website name. Can a giant orbiting rock really be “smart?” Certainly, the majority of humans crawling all over it aren’t, based on their OS “choice,” to say nothing of the IQ bell curve among many other things.

Dodge continues, “Mac operating system share has steadily risen in 2009, topping out in October at 5.27 per cent to Microsoft Windows’ seemingly insurmountable 92.52 percent, according to market research firm Net Applications.”

MacDailyNews Take: Net Applications doesn’t measure market share, Mr. Dodge. It measures OS information reported by users browsers as they access NetApps’ network of some 40,000 sites worldwide. Market share is nothing but the number of units sold by a vendor divided by the total number of units sold regardless of whether they made money (Apple Macs) or not (“netbooks”). Dell has triple the market share of Apple, generates roughly 33% greater revenue, but makes just 1/3rd the profit. Tell us why Apple has to dramatically cut Mac prices and increase market share again?

Dodge continues, “There’s a problem and it’s one Apple can fix. Macs are too expensive.”

MacDailyNews Take: Says who? Only someone who doesn’t understand the differences between margins, profits, and market share.

Dodge continues, “There I was last Friday in the Apple store cooing over an elegant 15-inch MacBook Pro. But at $1,700, I could not pull the trigger.”

MacDailyNews Take: John, nobody cares if you’re too poor to afford a 15-inch MacBook Pro. Get the 13-inch model, or the MacBook, and/or a real job and stop your tedious whining.

Dodge continues, “Everything else was right except the price. I’m ready to switch from 20 plus years as a Windows user who has written about the technology longer than that and switch to a Mac… The Mac is the more intelligent choice… So as a buyer, I’m stuck in a PC notebook processor netherworld and being too cheap to shell out megabucks for a Mac, the clear winner on all levels but price. Pricecuts on the Mac would make it a much more appealing mainstream contender. Android, anyone?”

MacDailyNews Take: To illustrate the morbid stupidity: There I was last Friday in the BMW dealership cooing over an elegant BMW M5. But at $85,500, I could not pull the trigger. Everything else was right except the price. I’m ready to switch from 20 plus years as a Ford sufferer who has written about automobile technology longer than that and switch to a BMW… The BMW is the more intelligent choice… So as a buyer, I’m stuck in a Ford and being too cheap to shell out megabucks for a BMW, the clear winner on all levels but price. Pricecuts on the BMW would make it a much more appealing mainstream contender. Chevy, anyone?

Last quarter, Apple sold a record number of Macs. Apple currently owns 91% share of the $1,000+ computer market. If anything, Apple should consider raising Mac prices as selling record numbers of premium-prices products during “the worst economy since The Great Depression” probably indicates that Apple’s Mac prices are too low. Even without price increases, perhaps because articles written by illogical people don’t command much of a price, John can’t afford a Mac, so in order to appease him, Apple should cut their margins down to beleaguered Dell’s levels, so they can work markedly harder for significantly less revenue and soon start laying off people, closing plants, retail outlets and call centers, skimping on build-quality, and installing a bad copy of Mac OS X from a bloated, rudderless company headed by a clown who once got a very fortuitous dorm assignment.

Pure genius, John. SmartPlanet, indeed.

What may well be the stupidest article of the month, at least, already (not counting anything emitted by Rob Enderle) – give John the clicks, so maybe the poor bastard can eventually afford a reburb Mac, at least – can be found here.

82 Comments

  1. @JoeSmoe
    Predrag makes some good points, my take is you must think you are going to kick the bucket within the 6-8 years a Mac will be good for (vs 2-4 years of a Pee Cee), and that you dislike your hiers so much you will leave them crappy Pee Cee’s that are also ready to kick the bucket. Thats the only logic I can derive from your willingness to choose PC’s based on pure price. ” width=”19″ height=”19″ alt=”cool hmm” style=”border:0;” />

  2. And another point: why should one have to buy a Pro machine just to get the 15″ monitor? Maybe not everyone needs the extra speed & RAM and FireWire and and and…

    Look, I think the people responsible for Windoze should be taken to the World Court and prosecuted for crimes against humanity, but that doesn’t mean Apple can’t make a 15″ MacBook (no Pro) for those that don’t need the extra power but just want a wider screen…

    Just a thought…

  3. Previous upgrade path:

    – Go to Dell, HP, Gateway, Compaq, Sony, Alienware websites and build system. Go with cheapest system that provided max build.

    Current upgrade path:

    – apple.com
    Save up and buy the best system known to man.

  4. What may well be the stupidest article of the month, at least, (not counting anything emitted by Rob Enderle) – give John the clicks, so maybe the poor bastard can eventually afford a reburb Mac, at least”

    LOL. Well give him a few more articles and he’ll soon be up to Robs Supreme Idiot Levels.

  5. MDN: “MacDailyNews Take: John, nobody cares if you’re too poor to afford a 15-inch MacBook Pro. Get the 13-inch model, or the MacBook, and/or a real job and stop your tedious whining.”

    Jeez, did Olberman guess-write this piece. Harsh. Lay off the lemons, maybe your asshole will unpucker itself.

  6. @JoeSmoe

    I guess your clueless to the meaning of the word “saving”. Yeah get a jar put in 10 bucks a week if that’s all you can afford. Sell your old crap when your ready. Then you can afford a Mac. There you go. How hard was that.

  7. MacMan: “Apple’s mission should be to make a reasonable profit but also to put OS X on the desks and laps and pockets of EVERYONE on the planet. They are sitting on upwards of $31 BILLION dollars – it’s not like they’re scraping by. You would think they could be a little more competitive in price to gain that market share…”

    Naw, not Job’s style. That would be so…so…common. He’s a typical elitist liberal billionaire, doesn’t want to associate with the peons.

  8. I love how there are all these ads for Microsoft’s stuff on MDN. The fun part of it is that they keep spending money on advertising here (i.e. MDN keeps making money off of MS), while it is obvious to ANYONE that not a single person on this web site will actually respond to any MS ads.

    If MDN has to make a living selling ads, I say, let them sell ad space to MS! There’s nothing like the satisfaction that comes with the knowledge of MS throwing money down the drain!

  9. @Predrag
    I don”t know about you, but thats the luxury of having 90+% of the market that M$ keeps sticking us in the eye with. I also would like to see Apple be a little more price competitive. In the PeeCee world it’s the hardware guys getting squeezed, M$ just picks up license fees from every bare bones crappy net book that gets sold.

  10. MacMan – They are sitting on upwards of $31 BILLION dollars – it’s not like they’re scraping by.

    There’s always someone who wants to spend your money when they don’t have it themselves.

    It’s their money, leave off it!

  11. I think the prices are fine, and there’s definitely no need to lower them, but raise them? Whoa, MDN, let’s not get carried away!

    Magic Word: Working, as in if John was, he’d be able to afford a Mac.

  12. Apple chopping margins makes zero sense in light of their users’ willingness to pay current prices. It’s just a bad business decision.

    Secondly, why do Macolytes compare their systems to one of the highest required-maintenance car families out there?

  13. @MacBart,
    “@ Cubert

    Exactly. Every time I compare a Dell or HP with the same specs as a Mac, the Mac either is less expensive or about the same. …!”

    RIGHT ON. Absolutely Right on. PERIOD and to those that want Apple to drop prices….. WHY. They already match PC prices. ……

    Apple makes money the old fashion way, they earn it. The spend Billions to buy memory at great rates ahead of need so their costs are lower when they use it. They keep turn over fast so there is not a lot of inventory sitting on the shelf. If you want a crappy pc for internet surfing, get a net book, virus ware etc and have fun. Save money. But there are plenty of used Mac systems out there for a good price. (Bought a used G4 tower for $200)

    @JoeShmoe. “Macs are EXPENSIVE, no doubt about it. I’m a loyal Mac user from day one and really hate windows, BUT we need 2 new laptops. My old ibook G3 just can’t cut it”

    Sorry fellow (PC troll??) See above. get two pc laptops that match a Mac and you are spending the same or more.

    Why do you need a more powerful computer??? BUSINESS??? then its a tax write-off. Just to surf the internet faster..?? My iBook works just fine and runs Tiger too.

    Sorry to all the complainers but I would like a new MacBook too. but mine runs just fine and will be with me for 3-5 years more. And by then, I might just sell my old iBook G3 for $300. Let me know if your still looking. LOL

    Just a thought.
    en

  14. I keep wondering exactly what specks the PC people are comparing. What about everyday use items. Apple’s trackpad is the most advanced on the market, PC’s have nothing close. The keyboard is centered with good space between the keys, and the pros are backlit. Most cheep laptops try and trick people into thinking they are getting a great deal because it includes a number pad; however they are now typing uncomfortably off center, when they could have had better speakers instead. When you go past the RAM, processor, and hard drive, there is no comparison.

  15. What a clueless asshat. Buddy, carry your ass, Apple does not want your business because you cheapskate that does not want to pay for value…. you want it for free.

    Go by a fscking netbook running Windows and go back to sleep, dumbass.

  16. Dodge thinks he has it bad! He should be thankful he doesn’t live in the UK, where the base 999$ MacBook retails for £799 = 1300$.

    Apple should be cutting the costs in some places in the world. Their greed is seriously pricing themselves out of sales in the UK.

  17. “BUT dropping 2K plus on laptops doesn’t fit the budget in the face of the oncoming financial Tsunami. “

    You may have hit the nail on the head with this part of your entry.

    No matter what the Obama administration says, I shudder at what the financial prospects are right now. Then, combined with some socialist thinking from our administration, I’m VERY concerned.

    Other than that, Macs are worth every penny Apple charges. Windows unit are so expensive on maintenance, there’s no comparison.

  18. Macs are expensive. Honestly, sometime I’m annoyed by the MacDailyNews Take. Sorry but not everybody is rich as yourself to afford All Apple’s Best and Latest tech.

    I came to the mac in 2005 starting with the $499 Mac Mini. And months later, I needed a notebook. The AppleStore Sold me a Brand new 12 Inch iBook G4 1.2Ghz including AppleCare for $699 with EDU Discount. Because it was the Previous model line. They sold it to me in that price because Apple Just introduced the 2005 1.33GHZ/1.42Ghz iBook G4 Line. That was the best deal of my life which I wouldn’t of found anywhere. If it were for a thoughtful Store Employee who remembered that leftover iBook, I probably would’ve bought a crappy Win/Tel Laptop.

    My Ol’ Faithful iBook G4 1.2Ghz has been creaky for the past year. It just can’t handle HQ video files online, and I’m getting tired of the spinning beach ball. The battery now last for about 1 Hour average, the enclosure has hairline cracks everywhere, and the Charging cord is breaking apart exposing the wires. I wrapped that with a mound of Electrical tape. I need a new Laptop.

    I don’t have $1000 to spend now. I’m a student and even after the EDU discount, it still will cost over $1000 for a base MacBook. If apple were to price that MacBook at between the $699-$799 range, maybe I would’ve upgraded a bit sooner.

    Honestly the White macbook should be Priced over $150 more expensive than where it should be.

    Apple Should also now include iWork. ilife is a much more valuable App and Apple Includes that. But Why not complete it with iWork Apple??? With all those Apps combined, you’ll blow the competition away.

    Oh and that $899 display?? Just How many people buy these???Apple Prices it this way because it may have some USB ports, speakers, and an iSight Camera? That display should be around $599 If apple want to move these. And Why offer a smaller 21.5 display like from the iMac so Apple can price it at $299.

    @ElderNorm
    R you kidding around or do you actually believe you may get $300 3-5 years from now for your iBook G3. If my Late 04 iBook G4 were in perfect shape, I don’t even think I would get $300 for it even today.

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