Apple about to introduce market invasion

[rpp3po]

A little bird just told me that Apple isn't only about to announce cheap, low margin iPods, but a whole new line of inexpensive Apple computing hardware.

Steve is about to announce that Apple hardware AND OS X is ready for the masses, superior to any competitor in every aspect. Apple is about to launch a whole range of affordable hardware to let everybody participate. They think that their products are mature enough to transform to low margin, high volume business. Microsoft is going to fall deep.

I'm not expecting that this is going to make it to the frontpage already, or even page 2, but other birds will soon twitter something alike.

Have fun, the revolution is coming!

 

[chainprayer]

that would be amazing, but what is your source?

...and can i get a discount for how much i just dropped into my mb and touch?

 

[weeman]

I hope you're right...but I don't see these announcements until macworld 2009

 

[OutThere]

So Apple is going to completely change gears from 'premium' computers to eMachines? Riiight.

 

[DigiCatRedux]

Maybe they'll test the waters softly - such as producing an economy model desktop / laptop machine. Other manufacturers seem to able to do it.

What sets the Mac apart for me, is primarily the OS, and how everything is engineered to work together - along with that "Apple design" applied.
How everything works as a whole.
I certainly think they could do it if they wanted to... question is, would they even honestly offer something like this?

Found an interesting article written awhile back, when rumors of a $500 iMac were first floating around.

http://theappleblog.com/2004/12/29/the-500-imac-will-not-happen/

Raises some valid points.

 

[Much Ado]

Market share is not an end unto itself.

Profit, however...

 

[bbotte]

Not a bad Idea, I will be buying a nice MBA SSD in December, but if a decent desktop solution for the right price appears, I may buy my second mac in Febuary.

 

[DoFoT9]

source please!

this would be awsome

 

[rdowns]

but what is your source?

A little birdie. Geesh, can't people read anymore.

Apple is not, has never been nor will ever be a low margin producer. Their costs are much higher than their competitors (OS X and iLife don't come cheap). Apple lowers prices on the iPods as they achieve economies of scale and parts prices come down. Pretty much the same for their computers.

Dell, HP and the rest would kill for Apple's margins.

 

[Apple Ink]

You're telling me that Apple is about to change what DEFINES it and differentiates it from the rest of the World?!

Apple will never ever induct considerable variety in the same breed.

 

[arkitect]

Well it would astonishing if it did come to fruition. Talk about an about turn.

But I have a feeling this story is just another attention-seeking post/thread.

Have fun, the revolution is coming!

Uh huh…

 

[BornAgainMac]

After snow leopard. I am so glad the developers at Apple have a chance to go back and do some house cleaning. Plus they can make it easier to enhance with future versions because I am sure the roadmap of features for 10.7, 10.8, and beyond is known internally.

 

[Scepticalscribe]

It seems strange to me that Apple would consider abandoning a strategy that has seen them garner accolades for the quality of their products and the excellence of their design. Moreover, it has been a very successful marketing strategy. This has enabled them to aim at the premium end of the market, and, to be the benchmark against which all others set their standards. I, too, would like to see a source confirming this tale. Cheers and good luck

 

[rpp3po]

From Apple's last Form 10K:

Gross margin percentage for the third quarter of 2008 was 34.8% compared to 36.9% for the third quarter of 2007. The gross margin percentage for the third quarter of 2008 was down 2.1 percentage points from the third quarter of 2007 primarily as a result of pricing actions, more richly configured products, and higher manufacturing and support costs.
The Company expects its gross margin percentage to continue to decrease in future periods compared to levels achieved during 2007 and the first three quarters of 2008, and anticipates gross margin levels of about 31.5% in the fourth quarter of 2008 and about 30% in 2009. This expected decline is due largely to the anticipated impact of product transitions, flat or reduced pricing on new and innovative products that have higher costs, both expected and potential future cost increases for key components, and higher logistics costs.

If you look at the magnitude of the projected margin decrease you'll see that this can't be just cheaper iPods. Selling more expensive componentes with lower margins is bad business. Apple wouldn't do that. Selling mid and low range products with low margins may substantially increase volume on the other hand.

 

[rdowns]

If you look at the magnitude of the projected margin decrease you'll see that this can't be just cheaper iPods.

Their iPod revenue is higher than their revenue for desktops (portables not included). Lower prices could have a huge impact on margins.

The statement you quote was widely interpreted as a new product category that would put pressure on margins. We'll have to wait and see.

 

[dukebound85]

ipods and macs are sekking very well as is, why would they change the model and take that risk?

 

[rpp3po]

ipods and macs are sekking very well as is, why would they change the model and take that risk?

Marketshare opens a lot of new opportunities. Right now applications can be ported to the Mac platform with relative ease. Much encapsulated code can be reused 1:1 for app internal number crunching.

With Grand Central, which seems to be the most exciting Larrabee platform one can think of, Apple is going a radically new route. It is going to offer vast computing resources for those developers coding around it. There's nothing comparable on the Windwos platform, let alone Linux. CUDA is a completly different approach from GC.

When you port a game today from Windows to OS X, you essentially put a wrapper around code written for directx to plug into OpenGL and other libs. Developing first for OS X and then porting to Windows, which also offers OpenGL, wouldn't gain you much.

If Apple delivers what they promise with GC and maybe some Larrabee hardware on top, there are vast new possibilities for developers on the Mac platform which no other platform can deliver today. The massive power of massively parallel GPU/CPU resources can't be exploited any easier than on the coming OS X platform. Sadly it won't build much momentum if Apple's marketshare stays so small compared to Windows. Apple is steadily growing but light years from even parity. If you want applications written for your superior platform first and then ported to an inferior Windows, you need marketshare! And you need it soon, before MS can deliver something comparable with the next Windows.

 

[akm3]

You're telling me that Apple is about to change what DEFINES it and differentiates it from the rest of the World?!

Apple will never ever induct considerable variety in the same breed.

You are fooling yourself if you don't think Steve Jobs would be giddy at the idea (and egotistical enough to think he can pull it off) of unseating Microsoft and returning Apple to be #1 again.

This is the only way to achieve it, and the $20 Billion war chest is in place if it doesn't work out.

I believe this rumor. I think Steve wants to rule the world, again.

Apple could remain an extremely profitable niche player, but Apple will go for the gold ring, at the expense of losing the Bronze and Silver rings if it doesn't work out.

 

[Apple Ink]

You are fooling yourself if you don't think Steve Jobs would be giddy at the idea (and egotistical enough to think he can pull it off) of unseating Microsoft and returning Apple to be #1 again.

This is the only way to achieve it, and the $20 Billion war chest is in place if it doesn't work out.

I believe this rumor. I think Steve wants to rule the world, again.

Apple could remain an extremely profitable niche player, but Apple will go for the gold ring, at the expense of losing the Bronze and Silver rings if it doesn't work out.

And I believe you're not really a true Apple fan/critique!
SJ made his ambitions regarding Apple very very clear in his joint interview with Gates at D! He said that he doesnt care if Msft Wins (which is currently questionable as well) because its' NOT A ZERO SUM GAME where for one to win the other has to LOSE!

He just wants Apple to be Apple and create great products like they've been doing!

And as far as fooling myself concerns.... its been just a measly 10 years since Apple adopted this policy and in just these miniscule 10 years... their products are at the top of the World winning accolades from all! Thanks to the Policy that Apple currently has in Place!

So combine both these and Im quite certain you're bound to get a rebuttal!

P.S.: Try to absorb the fact from the above points that for Apple and SJ, the Gold ring is NOT MARKETSHARE but Brilliant Outsanding Products... which Apple's current policy is able to achieve beautifully! So why change?

 

[bbotte]

Just remember that becoming #1 brings Viruses and spyware.....

 

[twoodcc]

well i hope this is true. i guess we'll see

 

[Nermal]

You know what this means? NEW MINI!