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Is Apple ripping us off?
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jazzman
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PostPosted: Wed Feb 04, 2009 6:25 am    Post subject: Is Apple ripping us off? Reply with quote

Anyone who reads my posts with any regularity will have noticed that I occasionally make a sly dig at Apples's Americo-centricity.

Macs always carried a cult price, but on Apple's own admission, they also carry a handsome profit margin. Great for the shareholders, but one could be tempted to wonder how much more the dividends would be if the prices were lowered, resulting in a significant increase in sales.

However, let's not get carried away with the idea that I'm in sympathy with their investors - I would just like to see them giving a bit more attention to the 40% extra-territorial market that their customers represent. Without us, there would be no investors, no stock, no products, and no bites in the Apple for anyone.

Are they ripping us non-American customers off? Or are they just on a suicidal trip?

See: http://www.youtube.com/watch?v=ujAkPdLU7Fw&NR=1
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Cypher
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PostPosted: Wed Feb 04, 2009 12:23 pm    Post subject: Reply with quote

ripping us off I think.

We currently have three Mac's, it would have been 5 at christmas but I just couldn't justify the price of a Macbook Pro 15" compared to a similar spec'd Windows machine.

I bought 2 windows laptops of the same spec as the 15" Macbook Pro and it cost me £360 less than the price of a single Macbook Pro.

Had the price premium for mac only been a hundred pounds or so I would have bought the Mac, but over £800 extra was just too big a premium

Even looked at the option of a 13" Macbook but they are almost £1000 I got the both windows machines for the same price.
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JohnnyBoy
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PostPosted: Wed Feb 04, 2009 1:41 pm    Post subject: Reply with quote

Crikey, Cypher! Shocked The price difference might have been even bigger if you had been permitted to forego the Windows licences and install Ubuntu instead.

Now that Macs use many of the same components as PCs, I think it becomes impossible for Apple to justify such a big price difference.
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lumberjack
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PostPosted: Wed Feb 04, 2009 2:19 pm    Post subject: Reply with quote

The Apple culture of trying to appear 'better than the rest' comes at a high price. By some miracle, Apple has built up enough cash reserves to avoid a hostile take over ( has that Gates t..t still got shares in Apple ? ).

I for one, am happy to pay Apple's prices for now, so long as the company maintains its independence.

One product which Apple has to keep keenly priced is the Mini, to encourage switchers.
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Ben Tex
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PostPosted: Wed Feb 04, 2009 4:42 pm    Post subject: Reply with quote

Personally, I think Apple has gotten a little greedy over the last two or three years. I really thought the switch to Intel would help them become more competitive with hardware pricing. But if anything, they've started to go the other way and ignore great products like the Mac mini. They're also ignoring the emerging netbook market and bad mouthing other great technology like Blu-ray. Don't get me wrong, they still make great stuff. It's just getting harder and harder to justify the price.
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jazzman
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PostPosted: Wed Feb 04, 2009 8:46 pm    Post subject: Reply with quote

lumberjack wrote:
One product which Apple has to keep keenly priced is the Mini, to encourage switchers.

I'll certainly agree with that. Apple is still ignoring the huge untapped market for entry level headless Macs and let us hope that if there ever is a Mini upgrade, that for those who want bit more power, it will be a bit easier to crack the case - there are still people paying a hundred bucks for the 5 minute intervention, which defeats the notion of the cheap brick.
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lumberjack
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PostPosted: Thu Feb 05, 2009 3:28 am    Post subject: Reply with quote

Agreed Jazzman,

now would be a suitable time to have a go at Apple.

After its customers have shelled out all this money to Apple, it is about time that the company spent a little of it's cash mountain on advertising its desktop range, particularly on the Mini.

That would remind the rest of the computing population that the products are great and that the company does sell things other than iPhones and iPods.

I am sorry, the next beef will be directed towards the Micros..t company.
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jazzman
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PostPosted: Thu Feb 05, 2009 4:29 am    Post subject: Reply with quote

lumberjack wrote:
Agreed Jazzman... it is about time that the company spent a little of it's cash mountain on advertising its desktop range, particularly on the Mini.

Yep; I thought I was the only one who had noticed that Apple doesn't advertise anything anywhere outside the US. Beats me how most people even know they exist.
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Smithcraft
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PostPosted: Thu Feb 05, 2009 4:51 am    Post subject: Reply with quote

Some of these price issues have nothing to do with Apple, and everything to do with import tariffs.

Some countries have tariffs that run very high on imported items.

Have you seen any other computer company make anything as good as an Apple system? Have you opened up a case and seen the cables routed cleanly throughout the system, or scattered everywhere, and you can't tell what's what? Have you compared the design and engineering of, say, a D*ll laptop, with the equivalent Apple laptop?

Profit margins - I don't know how many people are familiar with the manufactures product cost structure, but the classical structure is 1/3rd of the price is design cost, 1/3rd is the cost of parts and labor, and 1/3 is the profit. Apple doesn't seem to skimp on the design and engineering(but the do seem to forget about common sense), and Apple doesn't usually use lowend parts in it's models, like other companies.

Another aspect to consider is that Apple is the sole benefactor for the Mac world. There isn't another company making the OS, there isn't another company designing associated parts, and Apple isn't the guy at the end putting a bunch of miss mash together hoping that it will work. Hardware sales support Apples R&D and that includes OS X. Can't wait for QuickTime X myself.

Consider that unlike that other company that only lets you buy their OS with a computer, and charges a pretty penny for anything more than the basic version, you can get OS X for one price. If you really need it, you can get super OS X for more, but OS X isn't handicapped to induce you to buy a fancier version.

However I usually do feel that Apple is ripping us off. Rolling Eyes

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lumberjack
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PostPosted: Thu Feb 05, 2009 7:11 am    Post subject: Reply with quote

Its official then,

Apple lawyers will have to prepare to defend another class action from their customers for ripping off !
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jazzman
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PostPosted: Thu Feb 05, 2009 7:37 am    Post subject: Reply with quote

I don't think that's necessary. Unless the Mac is destined to become a rich kid's icon like the Mogan Motor Car (built in my home town), in the face of the current crisis they are going to have to tighten their belt on their profits.
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lumberjack
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PostPosted: Thu Feb 05, 2009 9:25 am    Post subject: Reply with quote

Well Jazzman, I think that Apple have all of their marketing mapped out for at least a full year ahead and based upon the introduction of the latest update to the MacBook, show no signs of reducing prices.

PS... it sounds like you were taking the class action as serious.

No doubt if some people can complain that the plastic on their new nano scratches easily then it won't take long for others to claim that the products that they have bought from Apple, are too expensive.

All the class actions do, is to make the lawyers rich.

As mentioned earlier, I am happy to pay Apple's price, for now.
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jazzman
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PostPosted: Thu Feb 05, 2009 10:28 am    Post subject: Reply with quote

lumberjack wrote:
I am happy to pay Apple's price, for now.

Me too - but it's not such a good deal for a student from a working-class family Wink

I remember paying 2,000 quid (nearly 2 month's salary in those days) for my first Mac twenty years ago - a MacPlus. That would be more than 4,000 in today's money !

Look what we get now for just a couple of hundred Wink
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Bandit Bill
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PostPosted: Thu Feb 05, 2009 12:44 pm    Post subject: Reply with quote

I personally don't think Apple is ripping us off. If you were to build your own machine to the same quality standards you probably end up paying more (especially when it comes to building quiet machines). Never mind the fact that it isn't engineered from the ground up or supported.

Value = ( Quality + Service + Intangibles ) - Price

Even though Macs may cost more. I find I get more value out them. Just the time that I have saved not having to reinstall my OS and applications has paid for itself.
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g5g5
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PostPosted: Thu Feb 05, 2009 5:08 pm    Post subject: Reply with quote

I can't speak for the differences in pricing, but I don't mind paying a slight premium for the better software and service here in the US. That said, I think days of defending prices based on design and superior Apple quality are long gone.
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