Slashing Macs: PC Strikes Back
Could we be seeing cheaper Mac products on the market this year? Is Apple going to have to lower their prices in order to compete with Windows PC, Dell and other companies who are boosting their computer’s ability, while maintaining a lower price?
Joe Wilcox on AppleWatch shows comparison cost and hardware on a mid-range Mac and Dell Inspiron 518:
iMac: $1,199; 2.4GHz Intel Core Duo processor, 20-inch widescreen display (integrated), 1GB DDR memory, 128MB ATI Radeon HD 2400 XT graphics, 250GB hard drive, 8x double-layer DVD burner, Bluetooth 2.1, 802.11 g Wi-Fi, Webcam and Mac OS X 10.5.
Inspiron 518: $739 (after $150 instant savings); 2.4GHz Intel Core 2 Quad processor, 19-inch widescreen monitor, 3GB DDR memory, Intel GMA X3100 graphics, 500GB hard drive, 8x DVD burner and Windows Vista Home Premium Service Pack 1.
Apple will continue to hold its edge on the market because of its user-friendly system, yet complex and cool image, but Apple must deal with competitor’s attempts to revolt against Apple’s image and higher priced products. Apple needs to lower its prices and bulk up on configurations and memory space, maintaining stability in its growing market share and stability in its superior performance.
Finance chief Peter Oppenheimer hints that, “We’re delivering state-of-the-art products at price points that our competitors can’t match, which has resulted in market share gains in each of our products. We plan to continue this strategy and to deliver great value to our customers while making a reasonable margin but not a margin so high as to leave an umbrella for our competitors.”
According to data collected by the NPD group at Gizmodo, the average Windows notebook goes for US$700, while the average Apple laptop costs above US$1,500, dropping a mere US$59 in the last two years. The umbrella’s been pulled out of the closet, and unless Mac lowers the cost of their products while continuing to create loyal customers with superior performance, they run the risk of wind catching their umbrella and blowing them off the top of the computer sales and performance leaderboard.