Originally posted by Cappy
Basically Apple is going to need some new devices and products to help keep them going. If Apple stays "afloat", the Mac will stay afloat in some form. If the Mac stays "afloat", there is no guarantee that Apple can stay afloat. I'm hoping to see something new come early 2k3.
Apple has $4 Billion in cash and is generally profitable. They are definitely going to stay afloat, no matter what happens with the G5 or the 970.
Basically, here's the way I see it: yes, pro users are going to get shafted for at least one more year as the PowerMac falls farther and farther behind the x86 in performance for the graphics workstation market.
On the other hand, the average consumer is caring less and less about performance. Here's an article from the Washington Post:
http://www.washingtonpost.com/wp-dyn/articles/A29501-2002Nov23.html
Basically says how PC users don't have to upgrade every 2 years anymore - the performance of old computers is just fine. It's diminishing marginal utility, folks - Economics 101. CPU makers have inundated the market with so much power that the average consumer just doesn't care anymore - they assume any CPU out there is more than up to the task for their own needs.
In this market, Apple can compete very well, because consumers will look at features and design more than CPU, and Apple's strength has always been product design (both hardware and software). Since people aren't upgrading because they think they "need" one to "keep up", they're either going to go either for computers with a gee-whiz factor (which the iMac, TiBook, and even the iBook and eMac have), or they may buy a Mac because now they have a Digital Camera, Digital Video Camera, large MP3 collection, etc., and the iApps will help them get more value and enjoyment from those devices.
Also as David Coursey pointed out in his column today:
http://www.zdnet.com/anchordesk/stories/story/0,10738,2898453,00.html
a lot of Mac users are "adders" rather than "switchers". And this is just fine. In an environment where not only does a household typically already own a PC, but Jack and Jane each have their own PC in their bedrooms or dorm rooms, then a new PC will fulfill a "want", not a "need". People will be snapping up iBooks, iMacs, TiBooks, etc. because they're cool and fun to use, not because they "need" one, the same way they might buy a new stereo or new TV. And they may still keep around their old PC (this is especially true of customers that already have a PC desktop and are buying iBooks and TiBooks).