Apples Brilliant Marketing In Action...

Discussion in 'Apple, Inc and Tech Industry' started by maclaptop, Jun 24, 2011.

  1. maclaptop macrumors 65816

    maclaptop

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    #1
  2. TheSideshow macrumors 6502

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    Apr 21, 2011
  3. rdowns macrumors Penryn

    rdowns

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    #3

    Damn right it does. I'm a stockholder.
     
  4. skunk macrumors G4

    skunk

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    #4
    You're a fat kitten, then.
     
  5. r1ch4rd macrumors 6502a

    r1ch4rd

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    #5
    That's the most pointless use of a graph that I have ever seen!
     
  6. skunk macrumors G4

    skunk

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    #6
    I disagree. I would never have been able to visualise seven PCs next to one Mac without the help of that graph.
     
  7. thejadedmonkey macrumors 604

    thejadedmonkey

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    #7
    I've got to disagree with that for two reasons:

    1) HP sells many government contracts, which probably means PC's at 0% margin, plus very very lucrative service contracts. Assume 1/2 thair sales are 0% profit, the other are 16% profit, or about $100. That's nowhere near as bad, especially when you consider volume.

    2) I ordered a Dell, but lets assume Dell and HP are similar. Then I changed my mind (I wanted a different model) but the laptop had already shipped. I was offered upto $60 in discounts to KEEP my model instead of returning it. No sane company would sell a product below cost, so I can only assume that their margin is above $60.
     
  8. TheSideshow macrumors 6502

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    Apr 21, 2011
    #8
    HP does that also. Lots of (pretty good) upgrades so they dont have to cancel the build and start a new order.
     
  9. rdowns macrumors Penryn

    rdowns

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    #9
    Bought my shares at $11.24. :)
     
  10. *LTD*, Jun 24, 2011
    Last edited: Jun 24, 2011

    *LTD* macrumors G4

    *LTD*

    Joined:
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    #10
    Macs continue to present a solid value proposition to consumers. It's part of the reason they sell so well in a recession. It shouldn't be surprising that consumers are willing to step up and pay for one.

    At some point the product itself has to be self-sustaining, on the merits. Marketing only hides junk for a short time. Just ask RIM.

    Some deeper analysis:

    Original article:

    http://mattrichman.tumblr.com/post/6844151919/a-consequence-of-losing-the-pc-wars

    Gruber quoting Andrew Richardson:

    Why Macs Cost More Than PCs

    Andrew Richardson takes Matt Richman’s numbers and goes further:

    If the average selling price of a Mac runs about $710 more than a PC (ASP of a Mac - ASP of an HP machine), and about $320 of that is profit, then the remaining $390 must be those higher costs. Apple’s computing hardware, and the software development behind OS X, actually cost more to manufacture. Given the volume their manufacturing partners are turning out and the squeeze to contain costs put on them by Apple, one has to wonder why.

    The answer is fairly obvious to anyone coming to Macs after years of using commodity PC equipment: better design and build quality costs more.

    ★ Friday, 24 June 2011
     
  11. snberk103 macrumors 603

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    An Island in the Salish Sea
    #11
    I think there may be much more to this than just a straight comparison.

    There's the profit from selling the system, and then there is the profit from the service contracts and/or leases. HP (and others) may sell their PC's on a break-even basis in order to secure the contracts for servicing those machines. Or, they may be leasing out the machines (at cost) and making their profit on the interest on the financing of the machines.

    In the same way that printers are sold (more or less) at cost so that the companies can make money selling the ink.

    HP (and other PC makers) often make big deliveries to enterprise or government customers. These customers would rather spread their payments over many years, and bookkeep them as an "expense" rather than put it all into a capital purchase in one year.

    So, while I absolutely agree Apple is making more profit per machine, they may be losing out on the leasing and service contract business.
     
  12. StvenH90 macrumors regular

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    Jun 13, 2011
    Location:
    Florida
    #12
    Same here, funny considering I sell Lenovo products (soon Dell also). I made most of my money of Ford, :cool:
     

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