Apples Brilliant Marketing In Action...

[maclaptop]

A quote:

"Apple may make more profit selling one Mac than HP does from 7 PCs"

From a trusted Apple source:

http://www.appleinsider.com/article..._selling_one_mac_than_hp_does_from_7_pcs.html

Unlike Google and Microsoft, Apple is one FAT CAT

(but we already knew that..ha..ha..)

 

[TheSideshow]

Wait. This makes you feel good?

 

[rdowns]

Wait. This makes you feel good?

Damn right it does. I'm a stockholder.

 

[skunk]

Damn right it does. I'm a stockholder.

You're a fat kitten, then.

 

[r1ch4rd]

That's the most pointless use of a graph that I have ever seen!

 

[skunk]

That's the most pointless use of a graph that I have ever seen!

I disagree. I would never have been able to visualise seven PCs next to one Mac without the help of that graph.

 

[thejadedmonkey]

I've got to disagree with that for two reasons:

1) HP sells many government contracts, which probably means PC's at 0% margin, plus very very lucrative service contracts. Assume 1/2 thair sales are 0% profit, the other are 16% profit, or about $100. That's nowhere near as bad, especially when you consider volume.

2) I ordered a Dell, but lets assume Dell and HP are similar. Then I changed my mind (I wanted a different model) but the laptop had already shipped. I was offered upto $60 in discounts to KEEP my model instead of returning it. No sane company would sell a product below cost, so I can only assume that their margin is above $60.

 

[TheSideshow]

I've got to disagree with that for two reasons:

1) HP sells many government contracts, which probably means PC's at 0% margin, plus very very lucrative service contracts. Assume 1/2 thair sales are 0% profit, the other are 16% profit, or about $100. That's nowhere near as bad, especially when you consider volume.

2) I ordered a Dell, but lets assume Dell and HP are similar. Then I changed my mind (I wanted a different model) but the laptop had already shipped. I was offered upto $60 in discounts to KEEP my model instead of returning it. No sane company would sell a product below cost, so I can only assume that their margin is above $60.

HP does that also. Lots of (pretty good) upgrades so they dont have to cancel the build and start a new order.

 

[rdowns]

You're a fat kitten, then.

Bought my shares at $11.24.

 

[*LTD*]

Macs continue to present a solid value proposition to consumers. It's part of the reason they sell so well in a recession. It shouldn't be surprising that consumers are willing to step up and pay for one.

At some point the product itself has to be self-sustaining, on the merits. Marketing only hides junk for a short time. Just ask RIM.

Some deeper analysis:

Original article:

http://mattrichman.tumblr.com/post/6844151919/a-consequence-of-losing-the-pc-wars

Gruber quoting Andrew Richardson:

Why Macs Cost More Than PCs

Andrew Richardson takes Matt Richman’s numbers and goes further:

If the average selling price of a Mac runs about $710 more than a PC (ASP of a Mac - ASP of an HP machine), and about $320 of that is profit, then the remaining $390 must be those higher costs. Apple’s computing hardware, and the software development behind OS X, actually cost more to manufacture. Given the volume their manufacturing partners are turning out and the squeeze to contain costs put on them by Apple, one has to wonder why.

The answer is fairly obvious to anyone coming to Macs after years of using commodity PC equipment: better design and build quality costs more.

★ Friday, 24 June 2011

 

[snberk103]

A quote:

"Apple may make more profit selling one Mac than HP does from 7 PCs"

...

I think there may be much more to this than just a straight comparison.

There's the profit from selling the system, and then there is the profit from the service contracts and/or leases. HP (and others) may sell their PC's on a break-even basis in order to secure the contracts for servicing those machines. Or, they may be leasing out the machines (at cost) and making their profit on the interest on the financing of the machines.

In the same way that printers are sold (more or less) at cost so that the companies can make money selling the ink.

HP (and other PC makers) often make big deliveries to enterprise or government customers. These customers would rather spread their payments over many years, and bookkeep them as an "expense" rather than put it all into a capital purchase in one year.

So, while I absolutely agree Apple is making more profit per machine, they may be losing out on the leasing and service contract business.

 

[StvenH90]

Damn right it does. I'm a stockholder.

Same here, funny considering I sell Lenovo products (soon Dell also). I made most of my money of Ford,