iBrick for the low-end consumers
Some readers will recognize the iBrick from my previous posts sometime ago.
This is where I think there is a major gap in Apple's overall product line.
Product__________________Price________________Arch_________________Target_Market
????_______________________$499_______________xt mon_______________converts, lw-end consumers, nth PC
old iMac_________________$799_______________all-in-1_____________mid-low end consumers, nth PC
old iMac_________________$999_______________all-in-1_____________mid-low end consumers, nth PC
iMac_______________________$1399_____________all-in-1_____________upper low-end consumers, nth PC
iMac_______________________$1599_____________all-in-1_____________upper low-end consumers
iMac_______________________$1899_____________all-in-1_____________yuppy, top of low-end consumers
PowerMac______________$1599_____________open_________________low-end pro, PC proficient, upgraders
PowerMac______________$2299_____________open_________________low-end pro, PC proficient, upgraders
PowerMac______________$2999_____________open_________________low-end pro, PC proficient, upgraders
PowerMac______________$3849_____________open_________________low-end pro, PC proficient, upgraders
Maybe I should've made an attachment so I could be more precise in constructing a product position table. Oh well!
???? = iBrick {not a name that should be used in mkt}
I'd of called the old iMac, and for that matter all iMac, converts (a low-cost means for WinDOZE users to experience a Mac so that Apple can set-the-hook), however, the iBrick does this more so than the others from a pricing/cost perspective.
The old iMac forces converts to employ a 15" CRT. I'm not alone in not wanting a 15" CRT. Senior citizens prefer more real estate for bigger text.
The new iMac converts WinDOZE users with STYLE, but at a price. An LCD WinDOZE computer offers more options and will be increasingly cheaper in upfront costs as well as 3rd party software costs. Remember, a learning curve is a cost! So, undoubtedly, the new iMac is and will continue to convert WinDOZE users but it will only tend to convert the less price sensitive of the bunch.
Many people have 15", 17", 19", and even 21" CRT's lying around or readily available, or simply cheap to purchase. Can/would these users leverage these existing assets with a new or old iMac? Don't think so!
For those that, at the least in terms of feature flexibility, want to leverage their existing monitors, must buy a low-end PowerMac at $1599, at the cheapest. Or, they can buy something used.
There are millions of potential low-end consumers that Apple would have a much better chance of capturing with a low-end, "headless" iMac, or iBrick.
Most of these people have no need for feature upgrades such as additional internal hard drives or optical drives. With Firewire or USB 2.0, external hard drives compete speed-wise with internal EIDE ATA/100/133 internal hard drives.
These consumers have limited need for increased RAM or any other feature enhancements. Most likely upgrades/additions for these users are handled nicely with USB and Firewire.
Bear in mind that CRT's are commodities. There is very little margin to be gained from their sale. So, Apple should veer away from them.
I expect that the eMac will have a razaor thin margin relative to other Apple products. Its CRT doesn't help; it hurts the margin. I suspect that the eMac represents an aggressive market share defensive product positioning adjustment as well as a means to shore up revenues and market share. These two figures tend to have more influence on stock price than they really should.
So, what is the iBrick? It would be no larger than the Cube, smaller would be better. It would have much less STYLE. Its features would have to be aligned with those of the continued old iMac line, which determines CPU selection. It would feature a relatively small (cheap) 5400 rpm EIDE hard drive, a low-end CD-ROM (possibly a CD-RW option; speed not as important as cost), same RAM and motherboard is old iMac, same number of USB and Firewire ports as old iMac (more would be nicer, however), a VGA port, and a low-end video card (sorry gamers!). The target price would be $499 with a margin comparable to that of the old iMac or higher. I'm not sure about an Airport antennae or some kind of a cheap peripheral to do the same via Firewire or USB. Oh yeah, the power supply might be external like a notebook computer.
Again, the iBrick would be a low-profile unit. It might even be designed to sit on top of a CRT or hand from its side.
Interestingly, at the risk of being too STYLISH, I would be interested in the practicallity of a form factor that would feature a body with four malluable legs, rear legs longer than front legs. It might be called Bullfrog!!! Depending upon costs, I'd make it as compact as practical. The body might be 7" wide, 8" deep (front to back), and 3" or 4" thick. The body would be rounded and rubbery, like the original iBook.
The legs wouldn't necessarily have any functionality other than as well, legs. Their feet would be just soft enough so that they'd be kind of sticky so they could sit on top of a CRT with cables pulling at it without falling off (this is why it has longer real legs). There would be holes or attachment mechanism around ankle level so that one could employ some simply means to hang the Bullfrog on the side of their monitor.
Okay, maybe the Bullfrog form factor might be too costly for the target market and Apple would just have to settle for something a little more stylish and functional than a brick.
Well, that's my view of Apple's product positioning in a little more than a nutshell.
Eirik
