balamw said:
Even though your last equation seems wrong (1=20%) you seem to forget that $p typically pays for marketing, administation, R&D and finally profit. 20% gross margin is pretty poor.
B
1) Eh.. $p by definition would be the pure gravy.. stuff like advertising and administration would fall under $c.
2) Since you brought that up, I see a lot more Dell adverts on TV.. make what you want of it.
kevin.rivers said:
Cheap is fine. If someone want a cheap computer, have at it. However when I buy a Mac I know I am getting the best parts out there.
2.0Ghz Core Duos. Bigger Hard Drives. More memory. Faster Graphics.
Bigger hard drives? Sure... look at Apple's upgrade prices. For the price of the upgrade itself you could have gotten the original drive as well as the upgraded drive. Oh yeah, and please tell me how a Dell's integrated graphics solution is slower than one that is used by a Mac (hint: it isn't).
What I find amusing is how people all beat on the Celeron line like it is some kind of cheap crap, well it certainly is cheap, but performance on a Celeron is pretty decent as well. People who think otherwise are simply ill adviced (think: brainwashed by Apple's propaganda) and these bunch are pretty much the same folk whose worlds collapsed around them when Apple launched products containing integrated graphics.
So it was bad in the past because Apple has a small snippet of info saying so, and now that they jumped on the cost cutting bandwagon themselves it is suddenly good? Puh-leez.
TangoCharlie said:
Your assertion doesn't make any sense.
Apple has to make a profit otherwise it would go under. Apple saw that the edu-iMac was taking sales from the normal iMac. Presumably Apple was making a smaller margin on the Edu-iMac. It made a commercial decision on whether stopping non-institutions buying the Edu-iMac would have a negative impact on total sales and obviously decided it wouldn't. That's standard business practice.
Apple has to make a profit. True. Are they making a loss on the educational iMac?
What I hate about Apple really is how Apple actually capitalises on "MacOS" and charges *us* arbitrary prices for compatible hardware. Tell me, is Apple in the computer business or the <discrete graphics/bluetooth adapter> resale business?
Why impose this artificial "packaging" on buyers?
It is not like the offering doesn't exist, but it is explicitly denied, why?
Switchers buy macs out of their own choosing, but after making that choice it seems like a lot of choices are denied from them. Really funny isn't it?
"Oh, you can't buy this computer, it is too cheap"
"Oh, you can't buy this configuration, we don't build it because it is too cheap"
"Oh, you can't upgrade this computer? Wanna have a go why? (Hint: it is too cheap)"
I managed to win over a recent convert lately but even then her first question is "Why is this so expensive? For the same price I can get a 2.8Ghz computer at <supermart> and get a free monitor on top of it."
Person who bought was a friend's granny, the ideal market segment for a Mac (ie: a computer for mommys and daddys), I don't see Apple winning hearts in this area.
As for the others.. namely people who use their computer to do actual work, or teenagers who play games, I don't see Apple having any advantage at all.