Re: Half the speed, twice the price
"Half the speed, twice the price" is just about right, kids. The "coolness" factor of Apple's products has worn out its welcome and we're now at a point where people are asking, "but is it worth it?"
Several issues that keep Apple back:
1) Un-upgradable video in iMac. For $1999, the imac 17" is a great, cool computer blessed with no video expansion. If you check industry trends, the #1 upgrade to old(er) computers is the video circuitry. Buying a $1999 machine that has 'no legs' to grow with me is a big turn-off.
2) Price/Performance level of desktop computers. Apple's PowerMac line simply is *not* price/performance competitve. Regardless what Apple says, consumers are used to the following equation: performance goes up, price goes down.
Apple, for obvious financial reasons, does *not* follow this equation. They maintain the same prices for speed values that are 12-18 months behind the mainstream. All myth aside, this is what the aggregate market sees.
Compared to the broader market, the 1.25ghz top of the line PowerMac G4 should be selling for sub-$1000, not $3499 plus. Clearly Apple cannot do that.
My point here is that Apple tries to convince Wall Street and mainstreet that it does not play by the same rules as the Wintel Industry, yet at the same time tries to convince everyone that it can, in fact, compete with the Wintel industry. Confusing message, isn't it?
And the reality is that Apple *does* compete with the Wintel industry - it competes for end users, it competes for software manufacturers' resources and efforts. Selling to Apple's installed base is a losing proposition in the long run, and this is one of the reasons you see Apple's stock price hovering around $15/share for the last two years: investors don't see much future upward growth in the company.
I've said it before and I'll restate it here: the megahertz myth is a great marketing tool, Apple is a great company when it comes to marketing. But if the company does not get its act together and release some price/performance competitive hardware very quickly, we're looking at a very bleak forecast.
The plus is that Apple is quickly approaching one of its "bet the company" periods that seems to pop up every few years like clockwork. The good side to this is that Apple is usually at its very best when its backed to the wall. I'm cautiously optimistic.
Originally posted by SchlimpyChicken
Keep repeating the mantra: "Half the speed, twice the price."
In general, consumers (read: bulk of computer purchasers) don't know alot about computers. They don't do MHz math or perform careful analysis of included technologies.
They do, however, recognize this: An Apple computer, while it looks cool, costs a whole lot more than a PC. And while some may argue in favor of Firewire and fancy LCD monitors that pivot, Joe Average is happy with his $699 holiday special Dell with non-fancy pivoting 15" LCD monitor.
Apple will NEVER gain marketshare until they beef up their manufacturing and R&D process to compete in the real world.
Real people don't want "Half the speed, twice the price."