generik said:I pretty much agree with what you've said, except for the car analogy... the difference is that for the brand name cars you've mentioned, well, those cars are all actually better engineered than your garden variety Hondas or Toyotas.
I think you misunderstood what I was saying about the car analogy.
I'm not comparing a Toyota to a BMW, just like I'm not comparing a Celeron to a core Duo.
I'm talking about why people pay for the markup on these vehicles.
Everyone knows that people who buy a BMW are paying a higher premium over total Cost to Produce than a person who buys a Hyundai.
(Hypothetical)
BMW - Markup 20%
Hyundai - Markup 5%
The quality difference is significant, but at the same time, why should BMW have a 15% higher markup.
Do people think the brand name is worth more? Did they get a special service package? What extra value is assigned?
Compare this with computers
I can buy a bottom of the barrel dell computer where they have extremely tight profit margins and use lower quality components. I'm getting what I pay for if it doesn't work out.
Or....
I can choose between a high end Dell and a Mac Book Pro. Apple probably has a higher markup even though the Dell has the same components, but Apple has something else that appeals to consumers greater than just the cost to produce.
I'm not trying to put forth the "Mac better than Windows" but each consumer has their own reason. Maybe an Apple store is close to someone's home, maybe they don't want viruses, maybe they want Apple support, maybe they want OS X, maybe......infinite reasons.
The point is that people pay the $100 or $200 difference in price for the Apple computer over the Dell with the same components for any number of reasons. It isn't because they are stupid or getting fleeced by buying a more expensive product.
The best car analogy I can come up with here is buying a Toyota Avalon or a Lexis ES330. Same parent company, practically same parts, same engine, both reliable and great cars. This begs the question as to why someone would buy the Lexis over the Toyota when the Toyota is cheaper.
This is the same reason why someone buys an Apple over a Dell/IBM/Gateway or any other manufacturer of computers who might sell something with similar innards for a little less money.