RSSApple: 'We can't build a great $399 computer'
By Tim Conneally | Published July 21, 2009, 6:07 PM
Apple has posted its earnings for the third quarter of the 2009 fiscal year, which amounted (once again) to the best non-holiday quarter in Apple's history. The company's revenue grew 12% over last year to a total of $8.34 billion, with a net profit of $1.23 billion.
During the quarter, Apple saw record-setting adoption of Macs and iPhones by consumers, thanks in large part to the price cuts on the lower end of both lines. Wall Street anticipated a 3% contraction in Mac sales, but the company actually grew by 4% over last year, with a surge in sales taking place after the WWDC price cut announcements. During the quarter, 2.6 million Macs were sold, nearly meeting the company's all-time quarterly sales record.
While Apple did not speak specifically about which Mac was the best-selling, COO Tim Cook said the new $1,199 13-inch Macbook Pro attracted a lot of customers who would otherwise have bought the $999 13" Macbook. Indeed, Mac's "most affordable line ever" is coming extremely close to becoming its best selling line ever.
Just because cheaper looks to be selling better, that absolutely does not mean they will be joining the netbook "race to the bottom" any time soon, as rumors had suggested. Cook said, "Our goal is not to build the most computers, it's to build the best. Whatever price allows us to build the best computer, we'll build it there...we can't build a great $399 computer."
When asked about the possibility of an Apple netbook, Cook said, "I never want to discount anything in the future....[but] they're not robust, they lack horsepower, they have small displays, and cramped keyboards. Many people won't be happy with that. We're only going to plan things that are very innovative that we can be very proud of."
That's bull. They can but they don't want to. The proffit margins aren't attractive enough. They want to sell sleek stylish looking products with high proffit margins. Simple as.
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|Your loss DatabaseBen - OS-X kicks butt and Apple hardware more than pays for itself if you use it for anything meaningful. Apple machines are generally as expandable or more so than any other brand too. Luckily, as well, they are already tuned to perform well out-of-the-box and aren't so horribly underfeatured like most of the other badly thought out crap out there.
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|There is NO such thing as Apple Hardware...its made by Asus, WD, Nvidia, Kingston etcetc
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|Look at this idiot. Apple hardware? LOL IMAO!!
Did you mean Apple's processor, graphics card and so on? IDIOT
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|Shhhh! The informed haven't really caught on to that one yet. They still think the magic is in the sticker.
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|"we can't build a great $399 computer"
with cheap labor worldwide, most electronics can be built for pennies on the dollar.
apple is simply capitalizing on the popularity of the apple brand.
but who really cares if apple doesn't want to charge less, as long as there are people willing to pay the price "and" apple continues to show a profit.
even if mac's were less than 500.00 bucks, i still wouldn't buy one because there would be no option to customize and upgrade.
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|~Simple Truth~
Apple = Classy well-running OS. Excellent and useful quality software included. Top-of-the-class hardware that runs both its own OS (and even Windoze if you must) wonderfully. Replace every 4-5 years after years of enjoyment and maybe even make a buck on the sale. End result -> $$ and :)
MS = bloaty, me-too, half-baked software with an expensive long-term TCO. Generally cheaply made and poorly designed hardware with a short life - replace every 2-3 years. End result -> $$$, landfill, and many headaches along the way.
In my experience, Apple is often easily the least expensive in the long run. I think we need to go deeper than the "upfront buck" if we really want the truth. There are many less obvious but more substantial costs to consider.
a) Our Time [$$$]
b) QOE (QualityOfExperience) [$$$]
c) Lastability and Environmental Footprint [$$$]
d) Upfront Cost [$$]
e) The quantity of adware pre-loaded to bring the "Upfront Price" down. Could be put under (a) and (b) [$]
Apple scores very well compared to others in a "Real Wold" financial analysis.
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|Gawd, the BS never stops...
My laptop is 6 going on 7 years old. Still works fine and even runs Win7 tolerably (which is better than it ran XP). Anti-Malware is free, genius.
Simple truth??
Simple BS is more like it...
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|and you believe this BS, you probably believe that Steve Jobs is your one and only God as well
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|Yes, windoze users are willing to "tolerate" an awful lot. That is accept for common sense.
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|I'll take Jobs over Ballmer any time. No comparison really.
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|Cook said, "Our goal is not to build the most computers, it's to build the best. ...we can't build a great $399 computer." An honest statement from a brilliant company...but not 100% true. Because last time I checked, the components inside their computers are the same as Dell, Acer, HP, Asus, etc. All assembled at the same Taiwanese factory.
So, best design, sure, but not best computers.
My name is Morsel and I'm a Mac + PC.
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|HP, Acer and Dell machines have so many problems, but you'd think that Apple could build machines as good as Asus since Asus also builds premium laptop computers as Apple does.
I'm just not sure there is another EFI-based computer that isn't an Intel prototype, other than what Apple sells.
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|bousozoku "HP, Acer and Dell machines have so many problems,"
Rubbish, I have three Dell, always buy Dell, my Dell never go wrong. So exactly how many Dell, HP and Acer have you actually owned ? How long after you purchased them did they break ? Which broke first ? What were the problems you encountered ? Or were you just fibbing to make a point ?
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|Heads up; ASUS builds the MacBook Pros.
Heads up again; Itanium machines are all EFI based and have been around since the early 2000s.
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|Heads up. Whoever builds them builds them to Apple design and specs and runs Apple's OS. End of story.
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|Double Heads up: Apple designs their components to Intel's specs. Other companies actually do the manufacturing and assembly. One of the larger of these companies is ASUS.
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|I have to say, I believe the price point between Pre-built PC's (HP, Dell, Gateway, Toshibe) and Macs are getting closer, though you still pay a premium for Macs. I'm not sure I would say that one is better built than the other. However, when it comes to upgradeing computer hardware, in my experience, it is much easier to upgrade PCs than Macs, though I do get tired of propriatary parts. (talking to you HP with you stupid wierd sized PSUs).
As for the netbook argument, I believe Apple is missing out on a segment. Netbooks (or smartbooks depending on the company) fit between smartphones (including iPhone in this catagory) and regular notebooks/laptops. They are meant for quick power on and internet surfing. Best for light portability.
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|For once I sort of agree with apple. The netbook craze is puzzling. People buying crap to save a buck. How's that flash treating you netbook fans?
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|hmm..lets see..it works fine for its intended use (web surfing, light office work on the go)....so i guess that flash is treating us just fine?
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|mjm01010101 "People buying crap to save a buck"
Ever considered why ? Perhaps that buck they saved was needed for food !
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|THANK YOU APPLE.
As Both Steve Jobs and Tim Cook have stated in the past: "We don't build junk" Thank God Apple is staying away from the garbage netbook market. Netbooks belong in third world countries where people are just happy to have anything modern.
Netbooks are actually bringing the computing world backwards. They are too stripped down to be of any good use.
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|internetworld7 "Netbooks are actually bringing the computing world backwards."
Oh no they're not, it's a case of different horses for different courses, surely a bright chappie like you is able to understand that ?
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|These aren't the results of a company who is just making it through on loyalty; they are clearly continuing to bring in new users. That is impressive for a premium product/brand in a bad economy.
I certainly hope those results, along with Intel's, show that the economy isn't all that bad, and is improving.
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|They've got the Air for people who want ultra light. I can see them bringing out another machine that is a "better netbook", with typical Apple build quality, a size somewhere around 11 inches, and a price of $600-$700. It would provide a high-end option for students and people looking for a supplementary Macbook for travel and around the couch.
It certainly isn't going to be for everyone, but it would help them hold onto a lot of younger students. It wouldn't be for people for whom price is the top criteria, but that is a lousy niche anyway.
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|The shinny apple logo on the back of your laptop costs $398.99 -- so.. .sorry guys ;)
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|Remember when Apple claimed to be the computer "for the rest of us"?
Apparently, the rest of us are: (a) wealthy, (b) ALWAYS in need of more functionality than a netbook can offer, no matter what our situation may be.
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|Affordable and Apple are an oxymoron.
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|Not really, if you compare WITHIN the apple lines there are always "more" vs "less" affordable options
Not to mention comparing Apple to equivalent PC brands rather than trying to compare to something you threw together with a screwdriver @ Newegg..
Compare the Mac Mini to any of the various NetTops that are running atom + intel integrated graphics.. or the Mac Pro to anything consumer oriented from any PC manufacturer.. closest I found starts at 1900$ from HP .. before you bring it anywhere near parity with base Mac Pro..
Is there a price premium on apple hardware? sure.. but only the buyer can decide if he or she wants to pay that premium.. smartass comments like yours.. are about as intelligent as the micro$soft or other stupid childish nonsense..
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|Typical Apple Clone. That's why you're irrelevant and so few people actually own or use Macs (Apparently fewer by the day as well. [smiles]). Paying more for style is just plain shallow. Apple's computers are also disposable. You lost even before opening your mouth.
Why is it that Microsoft commercials show how their OS works while Apple commercials only try to put down PCs instead of showing how theirs work? Sort of like creationists trying to disprove evolution instead of trying to prove creationism since they know they have nothing to back up their beliefs.......... [smiles]
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|"Not to mention comparing Apple to equivalent PC brands rather than trying to compare to something you threw together with a screwdriver @ Newegg"
Funny how the PC enthusiasts use just those tools to build their gaming rigs that would blow any Apple PC out of the water...of course your first order of business would be to discredit those tools and those folks...since they are *exactly* the exception to all of your "proof"...
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|I built myself, a really nice desktop..core i7 that sort of thing, for barely even a $1000. The closest mac config comes in at almost 2.5x that price. I'd say I agree sjc001. There is no such thing as an affordable apple computer.
Also I'd say that Mr. Cook is wrong when he says netbooks aren't robust. I'll agree they are a little lacking on the horsepower front, but then again they aren't ment to be a desktop replacement. I have 10" netbook and think its size is perfect. It fits nicely into my backpack when I take with me to school, I don't need a special laptop bag to carry or any of that. Keyboard isn't cramped or any of that crap. And it the battery usually lasts long enough to get a full day's use from it.
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|My Mac Mini (early 2009) computer seems almost as fast as my other PC I built despite the fact that my PC has 8GB RAM and an Intel Core 2 E8500 CPU with twice as much L2 cache. The Mac Mini's Nvidia GeForce 9400m graphics chip isn't much slower than my PC's ATI Radeon 4650 graphics adapter which has 1GB dedicated DDR2 memory. It doesn't seem to matter if my Mac is running OS X or Windows either. The cost of my PC wasn't much more than my Mac Mini's $599 price tag. Now if only Apple would stop using a severely outdated 32-bit EFI implementation and switch to a 64-bit one. I thought 32-bit EFI was limited to the Itanium platform.
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|Still trolling huh? tisk, tisk...
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|"Why is it that Microsoft commercials show how their OS works..." what commercial is that? Their Laptop hunters dont show or talk about the OS...they only talk about cheapo low spec hardware and then compare that to higher end Apple offerings. They don't talk about the super expensive Microsoft OS or all the associated Anti Virus and Anti Malware you have to buy too.
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|PC_Tool, i know you are a troll and all but, people who build their own machines represent a tiny fraction of all computer buyers. By your logic, Apple, Dell, HP, Lenovo, etc... are all in the same boat of overpriced computers. How much does that single user license to Vista cost ya? $399? ROFL. You can almost buy the mini for that price.
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|$399? I bought my OEM Vista Ultimate 3 years ago for $199, so that's not really a valid argument. Also the "oh you have to buy anti malware for pc's but not for mac" argument isn't valid either, as there is plenty of malware for the Mac, in fact there is an article on gizmodo just today about a piece of malware for the Mac hidden in an aparent Erin Andrews naked video, OSX/Jahlav-C. Price does come into it, I happen to rather like Macs, i own 2 of them, but when it came time to get a new laptop, i compared a Macbook Pro and a Dell, to get all the same things out of the Macbook, was almost $1700 more than the Dell. so i went with the PC laptop. I've also got a 20 inch iMac and a Mac Mini, as well as a Core i7. so i try not to be biased one way or the other, If you have the cash to spend on the Mac, they are great computers, but they are never (except the mini perhaps ) going to be for the price concious consumer.
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|"or all the associated Anti Virus and Anti Malware you have to buy too."
Can't make your point without lying? Go figure...
"How much does that single user license to Vista cost ya? $399?"
...and that one too (go figure...) ;) Vista cost me $189 for Ultimate.
"people who build their own machines represent a tiny fraction of all computer buyers. By your logic, Apple, Dell, HP, Lenovo, etc... are all in the same boat of overpriced computers."
Off topic much? OP implied "newegg and screwdriver" was a poor substitute for a Mac. By my logic, that's got nothing to do with the pre-built PCs....but maybe in your imaginary world it does.
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|fatty, I know you are a troll and all.........mumble jumble whatever else you said, you lost me with your opening and so I figure everything else you said is BS.
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|"Their Laptop hunters dont show or talk about the OS...they only talk about cheapo low spec hardware and then compare that to higher end Apple offerings. They don't talk about the super expensive Microsoft OS or all the associated Anti Virus and Anti Malware you have to buy too."
nor do they talk about how much more options for software you can run on Windows vs OSX. And never have I seen them talk about specs for PCs or for Apple ones so I dont know where you're pulling the low spec laptops vs high end apple comparison from.
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|Having that many software options would totally piss Apple off. Apple only wants the best software running on their computers, just like they only want the best hardware inside their computers. They don't want some buggy piece of software that some kid created for their school project running on Mac OS X, nor does Apple want cheap quality hardware inside their Mac's that is going to fail all the time.
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|Anyone can develop apps for the mac....you know this, right? Apple has no say in what 3rd parties create.
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|I was being sarcastic. Yes Mac's have less applications available than PC's, but Mac's have more useful applications available.
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|"Mac's have more useful applications available."
I bet you don't even realize how ridiculously absurd that statement is...
How, exactly, does one measure usefulness? It's gotta be the most subjective thing int he universe, ffs...
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|"something you threw together with a screwdriver @ Newegg" - Spoken like a person who's never built his own machine.
A handbuilt rig put together with properly selected components will blow away nearly any mass-produced machine (Mac or PC!) Don't shop by 'machine' brand... shop for quality components and build it yourself! You'll get better performance and save money over a mass-produced clone every time.
Don't fear the screwdriver, gorgeth... build your own PC and know that NewEgg is your friend. You'll have money leftover for pizza.
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