“Something unexpected has happened at Apple, once known as the tech industry’s high-price leader,” Nick Wingfield reports for The New York Times. “Over the last several years it began beating rivals on price.”
“Apple’s new pricing strategy is a big change from the 1990s, when consumers regarded Apple as a producer of overpriced tech baubles, unable to compete effectively with its Macintosh family of computers against the far cheaper Windows PCs,” Wingfield reports. “But more recently, it began using its growing manufacturing scale and logistics prowess to deliver Apple products at far more aggressive prices, which in turn gave it more power to influence pricing industrywide.”
Wingfield reports, “Analysts and industry executives say Apple’s pricing is an overlooked part of its ability to find a large audience for those products beyond hard-core Apple fans.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “bob” for the heads up.]
“The biggest lesson Apple has learned is to price it aggressive and go for volume.” – Steve Jobs at D8 Conference
It is no wonder that the other electronics manufacturers and suppliers of components are scared of Apple; this will make strange bedfellows… and all the Apple-haters are progressively losing the “lower price” argument against Apple products. It’s not a good thing to be always right… Thus the backlash we see in many places, particularly on the Guardian and the Globe & Mail reader comments.
Very true. You will not find a 27inch AIO from Dell or so at a competitive price. We have 25 of them in our company and many of them are running Windows only due to the lack of ACT! for OS X. So we bought many of them for Windows, since they were so much more affordable than a PC. (Not to mention the beauty.)
For sure we were happier if there were ACT! for OS X, but that is a different story. Blame Sage for this. They ruined ACT! after they acquired it. To sad it is not running under WINE, even not the old version 6.
I work at a Mercedes-Benz dealership that uses iMacs as desktops and Mac Minis on each of the technician’s work stations.
Unforyunately, they’re all running Windows under Bootcamp, due to our industry software being Windows only.
The reasons the owner chose to use Macs are because they look good, they’re clean (not a bunch of cables everywhere), and for the specs that we have they’re a great value.
I have always had a problem with people thinking that the Mac is overpriced. I first bought an Apple LISA for $10,000. It generated a lot of business for me because of what it could do. For the last 6 years or so, when Apple came out with a new MacBook Pro I would check the price of a DELL with the same specs. DELL was always higher. The PC world has always biased the low end of their product line to the uninformed. This is not model for great user experience.
Yep, and just imagine when Apple drops the prices on iPads next year. iPad 3 starts at $399, iPad 2 starting price falls to $299. It will be game over for tablets. iCal this prescient post from R2 aka The Oracle.
Here’s one I did iCal:
R2
Thursday, April 1, 2010 – 3:02 pm · Reply
Setting the stage for disappointment, huh?
When those numbers come out after all this hype, the iPad will be iPanned as a flop.
I remember that one as well. Good looking’ out!
Come on, that was obviously an April Fool’s joke. But prediciting a price drop? That’s pure genius. People will say “Wow R2, how do you do it?? Your powers of prescience are unparalleled! The only question now is will you use them for good or for awesome?”
If Cook is on the ball, they will cut the iPad price next year as you say. But I think you’re being a little unrealistic as to the size of the cut. My prediction: the iPad 2 will be kept around with a price drop to $399, while the iPad 3 will stick with the $499 starting price. Take a look at what Apple is doing with the iPhone. The new model is always kept at the higher price, while the old model is the one to be cut.
hey Connell …
You still got “The Lisa” ?
I’m a Mac fan from the days of the 2nd model, the 512K Mac, and I think I must have been loony to spend $3,500K back then, when money was worth more, on a stupid Mac that lasted me only a few years.
The Fat Mac was a major upgrade. Made my first million using that computer.
The “”Macs are expensive” line still holds though, because Apple doesn’t offer anything in the $300-$900 range where most PCs are sold. (Unless you count the iPad as a PC competitor – that is a bit of a stretch.)
Mac mini
I forgot about the mini. But a Mac Mini costs $600, plus $200 for a monitor, keyboard, mouse and maybe DVD burner. So that is $800 for a useful system. Here is one for $400:
http://www.walmart.com/ip/eMachines-1TB-PV.NCW02.001/16608491
I’m sure it falls short in some ways to the Mini, but it does plenty of useful things.
All of this is true, MACs do generally cost more, however, the quality is far greater then any pc competitor. I’ve always owned macs and pcs and I’ve always had problems with my pcs and never a MAC. The apple OS runs far more efficient, much faster, never crashes, nor do I ever get a virus, and my pcs even with up to date virus software always ended up with viruses and required total system overhauls and detailed recoveries of data. There is no comparison between a pc, that’s manufactured by so many relying on windows that gets worse as time goes on and Apple products that only get better. Also, with the new technology every device is connected that you own, if it’s an apple product. A VPN client is not needed to access another device that operates so slowly where as with a MAC it’s one click away and fast. I can’t even begin to understand how one compares Apples to Oranges (pc’s) 😉
You get what you pay for..TCO is higher with winblows pc’s.
Can’t anyone spell “TCO”? I knew you could.
Macs are the same price or cheaper overall.
It depends what products your comparing. However, apple products are far superior to any pc manufacturer!
SB. – Apples to lemons.