price increases

TimDaddy

macrumors 6502
Original poster
Well, I work in the automotive industry, and for the past several years the 3 American companies have sold certain models at a loss and even more models at break even prices. This kept demand up, kept thier market share percentages high, and kept the assembly lines moving. Apple could do that in order to gain market share. They do have one of the largest cash reserves of any company of any type. But I'm sure we all are well aware that all these losses have finally caught up to the big 3 automakers. You can only do that for so long, as they have learned, and now thousands of autoworkers are out of work, each of those 3 had $1 billion or more losses last year, and are HOPING to break even this year. And they only did this on thier slowest selling models! Apple would be crazy to break even or accept a loss on something as hot as the iMac! I think most people who will refuse to pay the extra hundred bucks will simply wait until prices fall again, but I'd say there are enough people who will pay extra to keep the units moving for now. I plan on buying mine anyway.
 

AlphaTech

macrumors 601
Oct 4, 2001
4,556
0
Natick, MA
If Apple was to price any product at break even pricing, I would suggest the G3 iMac. Those have been in production long enough, and the other models should sell enough to make up for any potential loss. If Apple was to drop those prices by even $100, I think people would be dancing in the streets, or busting their humps to get them.

The only other ways I can see to get the selling prices down is to downgrade some components that can be. Such as hard drive sizes, memory amounts, and the optical drives.

Either way, I don't see Apple taking too much of a hit for the increase in the G4 iMac pricing. As you mentioned, only people that were borderline on getting one are going to cancel the order.

How long has Apple been in the black, does anyone know??
 
Comment

mcrain

macrumors 68000
Feb 8, 2002
1,772
11
Illinois
I can't wait for Harley Davidson to follow the Big 3's lead and sell me a bike at "Break Even" prices. I think I'd consider selling my bike for one of the new ones if it was priced that low. Yeah, that's off topic...

Back on topic, Apple doesn't need to cut its prices to gain market share, it needs to increase the speed at which its advances occur. I mean, come on. Mac world with Jobs keynote, and the big annoucement is a new ipod. Yippie! Give me some new speed, show me that company is innovating. I know it's an innovative company, but it needs to be innovative all the time, not just on the 3rd teusday of the 4th month when the moon is shining out of my arse.
 
Comment

Tommy!

macrumors regular
Jul 26, 2001
207
0
NH
Let's not forget how smart Steve is...

Besides, I bet most of this price increase has to do with the demand. If you were shipping 5,000 a day, would you raise the price by 100 bucks? I betcha would!

Reguardless of the component costs, I bet Apple is at least making a little bit of money with the increase...
 
Comment

blakespot

Administrator
Jun 4, 2000
1,319
52
Alexandria, VA
Apple has far higher profit margins Macs it sells than PC's, given the strict more-exactly-similar nature of the competition in the PC world. Doubtless the $100 increase contains some margin, but not much, I'd wager.


blakespot
 
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menoinjun

macrumors 6502a
Jul 7, 2001
567
0
Apple and Harley Davidson will never lower prices to compete with other company's. Why? Because they have what others don't. Thats extreme customer loyalty and a very well know name brand. People (like us) will pay the premium to own an Apple or Harley (even though I buy honda) because we like the brand. Apple doesn't have to lower prices to gain marketshare, they are gaining every day without it.

I could have bought a fast as hell PC for about half as much ad I did my mac last year, but I am exponentially happier now.

-Pete
 
Comment

AlphaTech

macrumors 601
Oct 4, 2001
4,556
0
Natick, MA
ptrauber, Hell yeah....

I own both a Mac (TiBook) and Harley (2002 Softail standard), and I LOVE both of them. I never knew what I was really missing until I got the Harley (at least as far as bikes go). I have to say, both are well worth what you pay. The old saying of you get what you pay for holds 100% true here.

For computers, I will only buy Apple's (even if I do build a game peecee) and for vehicles, American brand only (I have a 2002 Ford truck now too).

I wonder what kind of party Apple will throw when it turns 100 :D... maybe we should do something when they turn 30, then 50, 75 and 100 (if anyone in here is still living that is). :D

Just a few thoughts...
 
Comment

Homer Simpson

macrumors newbie
May 1, 2002
2
0
Originally posted by AlphaTech
If Apple was to price any product at break even pricing, I would suggest the G3 iMac. Those have been in production long enough, and the other models should sell enough to make up for any potential loss. If Apple was to drop those prices by even $100, I think people would be dancing in the streets, or busting their humps to get them.

The only other ways I can see to get the selling prices down is to downgrade some components that can be. Such as hard drive sizes, memory amounts, and the optical drives.

Either way, I don't see Apple taking too much of a hit for the increase in the G4 iMac pricing. As you mentioned, only people that were borderline on getting one are going to cancel the order.

How long has Apple been in the black, does anyone know??
Boy are you SO diluted...
 
Comment

Rower_CPU

Moderator emeritus
Oct 5, 2001
11,219
0
San Diego, CA
Way OT

Originally posted by AlphaTech
ptrauber, Hell yeah....

I own both a Mac (TiBook) and Harley (2002 Softail standard), and I LOVE both of them. I never knew what I was really missing until I got the Harley (at least as far as bikes go). I have to say, both are well worth what you pay. The old saying of you get what you pay for holds 100% true here.

For computers, I will only buy Apple's (even if I do build a game peecee) and for vehicles, American brand only (I have a 2002 Ford truck now too).

I wonder what kind of party Apple will throw when it turns 100 :D... maybe we should do something when they turn 30, then 50, 75 and 100 (if anyone in here is still living that is). :D

Just a few thoughts...
And how much of your Ford is made in America? ;)
 
Comment

rainman::|:|

macrumors 603
Feb 2, 2002
5,438
2
iowa
Originally posted by Homer Simpson


Boy are you SO diluted...
oh lord, first post, and it's a one-liner. As someone one said, you don't get to make a first impression twice, and here you come saying something negative with nothing to support your comment. Why do you think he's diluted? what he said made sense. I can't even argue with your points, because you didn't make any. next time try saying something useful, that justifies the waste of bandwidth which you are.

Oh, by the way, welcome to MR.

On the subject of pricing... yeah it would be nice to see a $100 break on G3 iMacs, it would be a tremendous step for Apple. On the other stuff tho, their prices seem more than appropriate... sure you're paying a premium, but you're getting an Apple. Remember when the original iMac premiered? Jobs announced the price and everyone went wild. $1400 for the new iMac isn't out of line, since there are cheaper options... the eMac and the G3 iMac... Apple should not run at a loss just to sell units, because it would catch up with 'em in the end. they're on the road to more market share the old fashoned way, and even tho it'll take a while, they'll make it :)

pnw
 
Comment

AlphaTech

macrumors 601
Oct 4, 2001
4,556
0
Natick, MA
Re: Way OT

Originally posted by Rower_CPU


And how much of your Ford is made in America? ;)
Come on man, you can do better then that. It's almost not worth posting a reply, but I am anyway.

I won't even argue the point about how much of my truck is made in the US, the company is still based here, and owned by Americans (with a Ford as the head).

I thought that this thread was dead, but then it got pulled from the grave by homer, with a one liner that he has already been slammed over (I didn't even need to do it, thanks pnw).

Everyone has cooled off over Apple increasing the prices on the iMacs. I haven't seen any threads about how Apple raised the prices up a little on the new PowerBook G4 systems... maybe people are getting smarter... naahhhhh homer proves that theory wrong.
 
Comment

Rower_CPU

Moderator emeritus
Oct 5, 2001
11,219
0
San Diego, CA
Re: Re: Way OT

Originally posted by AlphaTech
Come on man, you can do better then that. It's almost not worth posting a reply, but I am anyway.

I won't even argue the point about how much of my truck is made in the US, the company is still based here, and owned by Americans (with a Ford as the head).
Just playing Devil's Advocate for the sake of some lively discussion here...:p

The world has become such a small place that almost any middle to large sized corporation has some sort of international presence. In most cases, companies that claim to be "American" have their parts assembled elsewhere ( Japan, Mexico, Canada, etc) and then brought back to be assembled in US plants by US workers.

If that's American enough for you, then great. I just think it's silly to pretend that companies can be/are exclusive to one country these days.
 
Comment

AlphaTech

macrumors 601
Oct 4, 2001
4,556
0
Natick, MA
Ok Rower_CPU... I did put in the post that you quoted "American brand" which says nothing about being completely made here. I know that parts come from all over the world, since some places make parts better, or Ford prefers one manufacturer or another of this, that, or the other thing.

One thing I do know, ALL Harleys are built in the US, that is put together, even if the carb's might be made elsewhere (think they are, haven't checked on all the parts, and don't intend to).

I just checked, my Ford truck was built in the USA (sticker says so). Even if parts are created elsewhere, at least it was assembled here. There is something very satisfying for me to know that I helped an US autoworker stay employed.
 
Comment

Rower_CPU

Moderator emeritus
Oct 5, 2001
11,219
0
San Diego, CA
AlphaTech-
I'm not trying to ruffle your feathers, big guy, I'm just making the point that almost nothing is homogenous these days.

I agree that it's great for companies to remain dedicated to maintaining a presence here in the US. The job opportunities created by the auto and high-tech industries are major factors in the US economy.

Just making sure you're not an "American made"-zealot. :D
 
Comment

AlphaTech

macrumors 601
Oct 4, 2001
4,556
0
Natick, MA
Originally posted by Rower_CPU
AlphaTech-
I'm not trying to ruffle your feathers, big guy, I'm just making the point that almost nothing is homogenous these days.

I agree that it's great for companies to remain dedicated to maintaining a presence here in the US. The job opportunities created by the auto and high-tech industries are major factors in the US economy.

Just making sure you're not an "American made"-zealot. :D
More of an American Brand then made zealot :D... I do buy things that are 100% made here whenever I can find them, if they are what I need. Worse case, I go with the American branded items. But some thing you just have to go outside the country, like Sony (sweet tv's and dvd players).

Anyone know if AMD is based in the US, or elsewhere??? Just wondering. I believe that ATI is based in Canada, but they are close enough. You know, eh? :D
 
Comment

Rower_CPU

Moderator emeritus
Oct 5, 2001
11,219
0
San Diego, CA
I'm pretty sure that AMD has manufacturing plants outside the US, either Scotland or Germany, if I remember correctly. The high-tech industry is especially hard to pin down to one country, since their profit margins are dependant on cheap labor/supplies.
 
Comment

cablejump

macrumors newbie
Apr 17, 2002
9
0
harley

I've never been a big fan of motorcycles but I do LOVE Mac and I'm willing to pay through the teeth for one....... As many are..... :)
 
Comment

kevinibook

macrumors member
Jan 6, 2002
59
0
Geneva ,Switzerland
Even the best of companies manufacture outside the USA. Its cheaper if u make something in the Czech Rep. or Poland than in the U.S or Japan. Apple assembles their cpu's in Taiwan.:p
 
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