Apple dropping prices...

asininity

We can only hope. Maybe I'd consider it.

For ages we have been saying that Apple's products are not high-end enough to justify its prices, and that's especially true in the current market environment. Industry pundits with any sense expect Apple's current quarter Mac sales figures to drop still further.


Now it seems that Apple has decided that its price levels really are unsustainable and it is worried that the kicking it has received at the hands of Microsoft's latest advertising campaign emphasising how expensive its PCs are might be taking a toll.

Full article HERE

isofa

I'd be surprised... especially as Apple have just enjoyed the best ever March quarter, with sales and profits up, revenues at $8.16 billion 9% higher than last year's $7.5 billion quarter (mainly boosted by the iPhone and iPod sales, Mac sales fell 3%), net profits for the quarter were $1.21 billion, 12% increase on last years March quarter. The are a super cash rich company.

(I've summarised from the FT & MacUser issue Vol.25 No.10 from 8th May 2009)

asininity

Doesn't mean they wont drop them though. Like I said I might consider getting one if they were cheaper, so would a lot of others.

isofa

True, but I think it's unlikely...

Marty_J

Possible I guess, but unlikely.

Apple are making money hand over fist; they're making so much, the rumours have started as to what they'll spend it on.

There is a segment in the tech community who think there's no way Apple can continue to make money in the current economic climate, but they happily ignore all evidence to the contrary.

The high-end of the PC market is the part of it that is best placed to weather the recession. People who want a £1,000 Mac aren't going to decide to buy a £200 Acer instead.

And Apple certainly haven't received "a kicking" at the hands of Microsoft and their lame ads, where people buy cheap, nasty, and under-performing computers instead of similarly priced Macs. All Microsoft's ads are doing, if they're doing anything, is forcing the general PC market further along its downward spiral. They aren't touching Apple at all.

Microsoft are acting as though they're the ones with a 10% market share. I guess Apple really have them rattled. The one thing you should do if you have a monopoly, is to avoid talking about any possible competitors. I wonder how many people have seen Microsoft's ads and thought "those Macs look nice...."?

isofa

The ludicrous "Macs are too cool for me" line, that MS used in some advertising is totally backfiring, advertising that your competitors products are cooler than yours, Redmond, or their ad agency, are so dumb sometimes...

wakandem

Problem with apple is their depreciation is worse than a 4x4 . No one wants a 2nd hand mac . i have experience of old stock and a P3 computer is more sale able than a 3yr old mac. To even dispose of them is more expensive than a pc as they have kilos of added plastic 'style' that is no good to man nor beast.

Marty_J

wakandem wrote: »

Problem with apple is their depreciation is worse than a 4x4 . No one wants a 2nd hand mac . i have experience of old stock and a P3 computer is more sale able than a 3yr old mac. To even dispose of them is more expensive than a pc as they have kilos of added plastic 'style' that is no good to man nor beast.

Are you high?

I bought my iMac 3 years ago for about £800. I could get £500 for it today on eBay.

A 5 or 6 year old iMac can still sell for £200.

Even faulty Macs can fetch a few hundred. Their resale value is widely regarded as one of the best things about them, and for good reason.

wakandem

wish i was (high),,,,,

In my experience the value is what people are prepared to pay and it alos depends how long you can hold the item for, to find someone who will pay the price & specifically wants a mac. Most people with £500 to spend will buy new with all the warranties etc than buy 2nd hand, unless again they specifically need a mac

Jaffa.

Heh. They put the prices up a few months ago.

isofa

wakandem wrote: »

Problem with apple is their depreciation is worse than a 4x4 . No one wants a 2nd hand mac . i have experience of old stock and a P3 computer is more sale able than a 3yr old mac. To even dispose of them is more expensive than a pc as they have kilos of added plastic 'style' that is no good to man nor beast.

Having owned PCs and Macs for 15 to 20 years, I can safely say with experience this is absolutely incorrect, I've a 9 year old G3 Powerbook which similar models are still fetching £300 on eBay, my 10 year old PC laptop is worth a tenna. I sold a G4 2 years ago for £350, I paid £1100 for it 5 years before.

Macs retain a lot of their value, and there is a booming second hand market, on eBay and other places.

A few years ago I had a client who was disposing of a lot of Mac kit in view of an upgrade, we sold direct to a dealer (MadMacs I think), and got somewhere between 25 to 30% of the original value, and they weren't modern models.

Last year I sold two ancient Macs (one a Quadra from the dark ages, 16Mb RAM etc), and netted over £200 in total, neither with monitors, but all boxed.

Factor in that older models can still run the latest, or almost latest release of the operating system (including the 9 year old Mac Powerbook I mention earlier, not to mention it came with technology unseen on PCs at the time, it has USB, firewire, DVD...), and they are a no-brainer investment wise.