The case for calling it "deceptive marketing"
After all these posts, let me make one more argument to support the camp that feels that Apple is being deceptive in using consumer drives in a device marketed as having "server-grade" drives.
o Apple never describes what "server-grade" actually means in the product documentation - we merely have one interview where an Apple talking head says that it means "more than 10^6 hour MTBF"
o Many of the disk drive manufacturers provide SATA drives in two reliability levels - the "good" drives for consumer use, and the "better" drives for more demanding server use.
- HGST has the "Deskstar" for consumer/entry server, and the "Ultrastar"
- Seagate has the "Barracuda" line for consumer/low-cost server, and the "Barracuda ES" (Enterprise Storage) for higher reliability server use. (Note that Seagate's website has the Barracuda under the "Desktop Storage" link, and the Barracuda ES under the "Server & Enterprise Storage" link in the nav pane.)
- Western Digital separates drives into "Desktop Drives (home/office/high-performance computing)" with 3 year warranty and "Enterprise Drives (servers/SAN/NAS/Surveillance)" with 5 year warranties (all Raptors are 5 year)
- Samsung separates drives into "Consumer Electronics" and "Enterprise RAID" categories
- Fujitsu only makes server-grade SCSI/SAS/FC drives
o It is not unreasonable to assume that Apple's term "server-grade" would refer to one of these variously named higher reliability offerings - people who carefully purchase disks know that disks come in two flavors, and for Apple to brag about the flavor used in the TC would lead reasonable buyers to expect the "better" flavor of drive in the TC
o Arguments about Deskstars shipping in XServes are irrelevant - that only shows that Apple is using desktop drives in its entry-level server (don't kid yourself that the XServe is "server-grade"

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o "Enterprise" vs "Server" is also not relevant. Drives come in "good" and "better", with various names for the two. Saying that "server-grade" does not mean "enterprise" is a hollow argument when Apple does not define "server-grade".
o Arguments about Hitachi claiming that Deskstars are suitable for low-cost servers are also irrelevant as to the point of deception - any of the consumer drives are suitable for low-cost servers, but that doesn't put them in the higher tier of "server grade" drives. (It also doesn't help that Hitachi does not publish MTBF info for Deskstar drives, we only have Apple's claim that they are 1 million hour.)
So, the core argument for claiming deception is that Apple used an undefined term "server-grade" that aware purchasers would reasonably assume to mean the upper tier of drives provided by many of the disk vendors. Had Apple put a footnote on the page saying that "server-grade" meant "at least 10^6 hour MTBF" then there would be no case for deception - but they haven't.
If it comes to a class-action suit - the question will be "would a reasonable buyer expect a drive named 'Desk' in a device advertised as having a 'server-grade' drive?" The answer is "no", and Apple will have to pay. All the arguments of the Apple apologists won't mean anything, the question is whether reasonable people will feel that they have been deceived.
If these drives are not really server-grade, and they are used in Xserves, does that mean Xserves really aren't servers?
No, it just means that you should be sure to use RAID on your XServe because it's using cheap Desktop drives
