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Old Sep 24, 2008, 01:08 PM   #1
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Apple feels the pressure from slowing economy




Category: 3rd Party Hardware
Link: Apple feels the pressure from slowing economy

Description:: "Our tracking of online sales is now indicating a dramatic shift from Macbooks to the lower-price-point netbook," said analyst Vijay Rakesh of Think Equity.


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Old Sep 24, 2008, 01:56 PM   #2
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Saved by Demographics?

Shaw Wu of American Technology Research in San Francisco shares the upbeat view. "In two of its three big franchises, Mac and iPhone, penetration is very low and starting in the higher-income demographics," Wu wrote on Sept. 22. "The disturbance in the macroeconomic environment is within lower-income demographics. We believe AAPL's business will remain strong in the near- to medium term. Enough high-end consumers are still buying tech."
English translation: Higher-income people with money to spare have always been a good percentage of Apple customers. These people are doctors, lawyers, professionals, celebrities, Hollywood stars, upper-middle class, millionaires, etc etc. Even when the American economy sucks the bucket, these people will still have enough money to buy their burgeoise or luxury hi-tech toys (i.e. Apple products, BMWs, Mercedes Benzes, Jaguars, Bose stereos, Luis Vuittons, etc etc). Because Apple can rely on these people to keep buying Apple products, we predict that this sucky Economic Recession and slowdown on the Computer Industry won't hurt Apple as hard as it would other companies.

/end translation
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Old Sep 24, 2008, 02:02 PM   #3
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Originally Posted by MacTraveller View Post
English translation: Higher-income people with money to spare have always been a good percentage of Apple customers. These people are doctors, lawyers, professionals, celebrities, Hollywood stars, upper-middle class, millionaires, etc etc. Even when the American economy sucks the bucket, these people will still have enough money to buy their burgeoise or luxury hi-tech toys (i.e. Apple products, BMWs, Mercedes Benzes, Jaguars, Bose stereos, Luis Vuittons, etc etc). Because Apple can rely on these people to keep buying Apple products, we predict that this sucky Economic Recession and slowdown on the Computer Industry won't hurt Apple as hard as it would other companies.

/end translation
Nice translation.
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Old Sep 24, 2008, 02:10 PM   #4
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"While Mac notebooks dominated the notebook category as a top-5 notebook seller through June, the last three weeks in August-September are showing virtually no Mac notebook as a top-5 notebook seller on Amazon heading into back to school, Rakesh notes."


Duh, people are doing EXACTLY what I am doing right now. Waiting for the refresh.

The PC world has the luxury of having so many makes and models that no one knows when a new computer is coming out (or cares), so they consistently sell.
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Old Sep 24, 2008, 02:10 PM   #5
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i saved my money and bought one. after an acer crashed twice- i spent more money than i would have on an apple. i am not rich- nor do i think 1k is a lot of money for a computer that is built well and come with a lot less headaches. my acer was a plastic hulk- always creaking and weighed about 6 pounds or more. i was afraid to hold it one handed as it bent like none-other. most of my friends are not pulling down 50k but they have macs.
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Old Sep 24, 2008, 02:12 PM   #6
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Originally Posted by mediaboy View Post
"While Mac notebooks dominated the notebook category as a top-5 notebook seller through June, the last three weeks in August-September are showing virtually no Mac notebook as a top-5 notebook seller on Amazon heading into back to school, Rakesh notes."


Duh, people are doing EXACTLY what I am doing right now. Waiting for the refresh.

The PC world has the luxury of having so many makes and models that no one knows when a new computer is coming out (or cares), so they consistently sell.
to get the free ipod- most parents are buying the kids laptops for school from the store- not amazon.
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Old Sep 24, 2008, 02:26 PM   #7
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Quote:
Originally Posted by MacTraveller View Post
English translation: Higher-income people with money to spare have always been a good percentage of Apple customers. These people are doctors, lawyers, professionals, celebrities, Hollywood stars, upper-middle class, millionaires, etc etc. Even when the American economy sucks the bucket, these people will still have enough money to buy their burgeoise or luxury hi-tech toys (i.e. Apple products, BMWs, Mercedes Benzes, Jaguars, Bose stereos, Luis Vuittons, etc etc). Because Apple can rely on these people to keep buying Apple products, we predict that this sucky Economic Recession and slowdown on the Computer Industry won't hurt Apple as hard as it would other companies.

/end translation
As far as I'm concerned, this thread could have stopped after this post.

Since it didn't, I'll add this: flight to quality.
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Old Sep 24, 2008, 02:47 PM   #8
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Quote:
Originally Posted by mediaboy View Post
"While Mac notebooks dominated the notebook category as a top-5 notebook seller through June, the last three weeks in August-September are showing virtually no Mac notebook as a top-5 notebook seller on Amazon heading into back to school, Rakesh notes."


Duh, people are doing EXACTLY what I am doing right now. Waiting for the refresh.

The PC world has the luxury of having so many makes and models that no one knows when a new computer is coming out (or cares), so they consistently sell.
How many people do you think actually know there is going to be a refresh that go into the Apple store?
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Old Sep 24, 2008, 03:14 PM   #9
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Originally Posted by MysticMage View Post
How many people do you think actually know there is going to be a refresh that go into the Apple store?
Well, in about 3 weeks, we will see. The economy isnt going to be magically fixed in 3 weeks, so if sales get kick started again, there are more knowledgeable consumers out there than you would think.

It reminds me of when the Mac Pro came out. Sales stalled and then took off on the release. (I wanted a Mac back then and waited until it came out)
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Old Sep 24, 2008, 04:14 PM   #10
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Originally Posted by MacTraveller View Post
English translation: Higher-income people with money to spare have always been a good percentage of Apple customers. These people are doctors, lawyers, professionals, celebrities, Hollywood stars, upper-middle class, millionaires, etc etc. Even when the American economy sucks the bucket, these people will still have enough money to buy their burgeoise or luxury hi-tech toys (i.e. Apple products, BMWs, Mercedes Benzes, Jaguars, Bose stereos, Luis Vuittons, etc etc). Because Apple can rely on these people to keep buying Apple products, we predict that this sucky Economic Recession and slowdown on the Computer Industry won't hurt Apple as hard as it would other companies.

/end translation
Excellent translation; however, the economic slowdown will inevitably trickle upwards, too. Just wait. A very good thread.
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Old Sep 24, 2008, 04:50 PM   #11
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Quote:
Originally Posted by mediaboy View Post
"While Mac notebooks dominated the notebook category as a top-5 notebook seller through June, the last three weeks in August-September are showing virtually no Mac notebook as a top-5 notebook seller on Amazon heading into back to school, Rakesh notes."


Duh, people are doing EXACTLY what I am doing right now. Waiting for the refresh.

The PC world has the luxury of having so many makes and models that no one knows when a new computer is coming out (or cares), so they consistently sell.
I'm waiting for a refresh, it's really the only thing keeping me from pulling the trigger on a dell 9 or an eee.
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Old Sep 25, 2008, 04:57 PM   #12
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I'm hoping that the Macbook refresh will reflect this trend towards cheaper laptops, but still maintain the Apple quality. So a reasonable budget price (not super-cheap), with decent specs and good build-quality and design. Basically what the MacBook has always been about, but hopefully with an even cheaper entry-level model.

I always wanted one but I don't need one enough to spend the money, whereas I could be tempted if there were a cheaper option, or a tablet or something.
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Old Sep 26, 2008, 05:23 AM   #13
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Originally Posted by MacTraveller View Post
English translation: Higher-income people with money to spare have always been a good percentage of Apple customers. ... Economic Recession and slowdown on the Computer Industry won't hurt Apple as hard as it would other companies.
Especially as the current economic climate has nothing to do with low income earners borrowing money they can't afford to pay back and behaving like higher-income earners
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Old Sep 26, 2008, 08:16 AM   #14
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I class myself as middle class I earn enough per year to afford my own house, a gaming pc and my MacBook, yeah I financed this MacBook as stumping up the cash was out of my reach, and since Apple offer such a good deal it suited me .

That said I have plans to gift this to the GF and get a aluminum Macbook upon release
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Old Sep 26, 2008, 08:56 AM   #15
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The majority of people in the US, Canada, Europe, etc. could afford to buy an Apple laptop. They choose not to since they think they are getting a better deal with a $499 Acer, when they are not.
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