You seem to have missed a word in Aiden's post. A mini tower would attract additional sales...
Sorry, but I've heard that refrain a hundred times. The problem is that more sales doesn't automatically increase profits, and one can't simply try to ignore the underlying business fundamentals.
The reason why 'more sales' from adding the xMac won't necessarily increase profits is because (in simple terms), you can't absolutely eliminate cannibalization of sister product lines, which means that each one of these other products have fewer units of sales with which to amortize their fixed costs of manufacturing across ... which means that they each all became incrementally less profitable.
Thus, the key question is if the additional sales from a product line addition will be large enough to offset this profits decline.
Absolutely no one has made this case.
My own view of the problem is compelled to observe that since 70% of Apple sales are
away from their desktop lines, the financials have a very very tough job of working out. You're free to disagree, but if you choose to do so,
please put up some financial analysis to argue your case. I've said many times before that the whole debate with the "xMac Gap" isn't a technical issue, but is simply from the business side.
The xMac supporters (not demanders) do NOT want Apple to sell machines at PC prices. We want a real desktop computer at a fair price. 50% more than a similar HP or Dell seems fair to me. That would put a modern quad core Mac desktop at the $1499 price point.
Yet even by saying "50% more", you're still baselining on the PC market.
Are you seriously calling the PC tower market niche?
Halfway, Yes.
70% of Mac sales are laptops, and over 50% of PC sales are too.
These numbers put "ALL desktops" in the minority, and this is a known marketplace trend.
Within the Mac product line, because of the non-tower form factors of the mini and iMac, the "tower" is already a niche. This hasn't happened yet on the PC side of the fence, mostly because the PC is still treated like a simple commodity, so PC manufacturers aren't generally able to demand any price premium for alterations to form factors (despite many tries).
Thus, PC consumers don't generally buy PC towers because they demand its feature of internal expansion utility - they buy PC towers because they're cheaper.
FWIW, I also recall hearing a statistic recently that claimed that something like 80% of all desktop PCs were being bought by businesses (I'll try to find it). Bottom line here is that businesses aren't as particularly inclined to pull DIY upgrades, because its cheaper to replace the hardware outright than to pay an IT Technician at fully burdened rates of $100/hour (or higher) to perform an incremental upgrade.
I believe an xMac would attract more than enough new sales to warrant having an additional product in the Apple lineup.
I'd love to believe you. Unfortunately, I've been involved in product development and manufacturing start-ups for 20+ years, so I disagree.
We need to go figure out how much all of Apple's NRE (Non-Recurring Engineering) and Fixed Costs would be: the new design, all of the OS & Software retooling & testing, and also all of the Capital investment costs for setting up the new production line for every new component and its assembly, right down to its packaging. These fixed costs need to be added to the variable costs to get the total, and the fewer units you're selling, the larger that its fraction becomes.
Thus, I know exactly what I need to be convinced otherwise: a reasonably detailed 'sharp pencil' financial analysis of the business case.
-hh