Originally posted by vrapan
You seem pretty determined to kinda downplay Apple don't ya?
That is actually not my intention, although I understand of course this impression is what is causing animosity with some folks. My point is not to say that Apple doesn't do anything good. My point is that R&D is not an explanation of Apple's higher prices. This whole R&D thing got started by someone saying "Apple has a lot of extra costs, like R&D, which justifies their high prices". My assertion in all of this is that I don't think Apple has any special extra costs associated with hi-cost R&D like what you might find at, say, Bell Labs.
Originally posted by vrapan
Now what's your definition of R&D?
A valid question. Some examples of R&D: Research into the 65 nm process; research into new interface paradigms; creation of a new type of laser for use in optical networking. Things that are inventions. Not just building a new product. Dell builds new products too, but we don't call that R&D.
Originally posted by vrapan
I just believe that the world of PC (Wintel and Macs and all the rest of course) is mature enough to where you really cannot have as many revolutions as evolutions. And that is what Apple has been doing.
I disagree. There is plenty of research happening, for example in the field of virtual reality and defining VR interfaces. Is Apple involved with this? (that is not a rhetorical question...I have been asking for an example of current Apple research activities, and I think this type of thing would qualify).
Originally posted by vrapan
For me you do need a certain amount of cash, man hours, brain power, creativity ie Research to come up with the simplicity and power of the iMac and iPod.
This is the crux of it. If you define research in those terms, everything is research, and the word has no meaning.
Originally posted by vrapan
For example Voice Recognition research has been going on forever and only some 4 years ago actual working products came to market that could be soltuions to actual problems and not only gimmicks and it seems like it is going to take at least another 5 years before they can become common place.
OK, here is another example of research. Has Apple recently pursued R&D into voice recognition? I believe they had in the past, but again I think Apple has gotten out of this kind of R&D.
Originally posted by robodweeb
Both Apple and Microsoft spend a lot of money on studying people and how they use technology through, for example, ethnographic observations and ethnomethodological analyses. Such research is key to the design and development of Apple's "cool" products.
OK, this seems reasonable. Normally the term "R&D" is used to describe technical research, but this kind of thing does cost extra money as well.
Now, the question is this. There is an implication here that Apple is bearing a larger burden of R&D, or knowledge discovery, or whatever you want to call it, than the combination of MS and Dell and whoever else. Do you think that is really the case? Does it justify a higher powerbook price?
Originally posted by robodweeb
In this context, yes, developing the iTunes Muic Store does qualify as R&D.
In the context of our discussion, this is like saying "Mac Users spend more on their powerbooks so that Apple can create a cool new music store so that Apple can make more money for itself." This sounds pretty wierd, right? This is what you are implying if you say that overpriced powerbooks fund Apple research, and an example of Apple research is the iTMS. What would sound more reasonable is the following: Apple makes powerbooks and sells them at competitive prices; and Apple invests some money to create the iTMS, which is a well-designed and well-planned operation that makes a handsome return on investment for Apple.