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But I'm talking about enterprise gear, which is supposed to be free of this sort of crap (or worst case, fixed fast if it's there). Down time is unacceptable for such systems, as is hours and hours of diagnostics. Enterprise users need their equipment to work, and keep working for 5 years (typical MTBR).

Apple? Enterprise? Where have you been? This has been going on for decades. If anything, this is total Apple.

I used to work in enterprise. This is always totally the way Apple worked, and if anything has been one of the big sore points in enterprise adoption.

My point is, that this sort of stuff isn't acceptable in the enterprise market. Mistakes like this have cost vendors dearly when users switched to other vendors as a result. Some are no longer exist...

Again, totally normal Apple.

Do you know how many years I can go back where I had an Apple tower that had some horrible defect? :) Off the top of my head, I can at least go back to the Power Mac 6500 which had a bad ATA controller, among other things.

And was one of the reasons touted for moving to Intel based parts. Now they want to keep the difference, rather than pass on any of it to the users.

Never was any part of the reason Apple gave for moving to Intel parts.

Apple has always had margins. "Now" they want to keep the difference? Always has been that way. Again.... how long have you been using Macs? :)

For proper perspective, you'd need to tell me the margins generated at that time (current margins are 41%, and has climbed since earlier Intel based systems). Even a year ago or so, the margin was 39%. Assuming an increase of 2%per year, it won't take that long for the MSRP's to get completely out of hand (this is margin, not increase from MSRP year to year).

This all sounds like the normal Apple margins they've had since the beginning of time...

I need margins and production costs to get a true perspective, as it's possible that the PPC systems cost more to produce, but had a lower margin to generate the MSRP.

They're (PPC MSRP's v. Intel based MSRP's) not much good to me otherwise.

Honestly, Apple is still pretty competitive with Dell work stations (like the Precision line).

I'm not saying the workstation will go away. But it will increase in price (no matter the vendor).

Again, since about 1998 Apple has always sold high end expensive work stations. I'm not sure why you think this is outside of Apple's expected market.

Now consider the margin's Apple applies, and it will get out of hand in short order unless they make a dramatic change (namely reduce the margin on the MP). Otherwise, it will be priced out of range at some point (i.e. independents first, SMB second, then large corporations).

Again, this has been a topic that has been around since 1998 when the iMac came out. Apple's margins have been fairly stable. Not sure why you think there is a margin increase going on.

This may be part of it, but the biggest thing you have to look at is the margin applied. The margin has been increasing, and the parts are actually cheaper in most cases.

No, the margin hasn't been increasing.


Front page news.

And when I applied the margins posted, the math worked out extremely well (shown in past posts in older threads - look around the time when the 2010's came out).

Yeah, again, compared to the G5's or G4's, the margins are pretty normal. The 2006/2008 Mac Pros were very abnormally priced. I wouldn't use them as a basis for any evaluation.


Assuming the physical format (pedestal case/tower) is acceptable/usable, only until OS X Server is canceled (yesterday's front page). Not even that if they use racks.

Mac enterprise used towers before the XServe came out, they can go back to using towers again. Not ideal, but it worked for years.

OS X Server isn't going away... The actual SKU might go away, possibly. But the actual product? If you've worked at all in Mac enterprise, you can see a lot of reason why it would be impossible for Apple to dump it.

XServes sold in low numbers and could be replaced by Mac Pros. XSan never worked right. Final Cut Server has low adoption and alternatives.

Mac OS X Server? Does a lot of things no other platform can do. Even if the SKU was cut it will live on in some way.

(Mac OS X Server is also key for machines like the Mac Mini Server, which I will note is a line Apple added of their own accord.)
 
Apple? Enterprise? Where have you been? This has been going on for decades. If anything, this is total Apple.

I used to work in enterprise. This is always totally the way Apple worked, and if anything has been one of the big sore points in enterprise adoption.
It's normal for Apple, but it's disgusting that they treat enterprise gear like disposable consumer grade junk. This one really gets under my skin.

Do you know how many years I can go back where I had an Apple tower that had some horrible defect? :) Off the top of my head, I can at least go back to the Power Mac 6500 which had a bad ATA controller, among other things.
Perhaps you should ask what's in the Kool Aid before you drink it. :eek: :p

Never was any part of the reason Apple gave for moving to Intel parts.
IIRC at that time, the PPC parts were more expensive (more defects = lower yields), as well as the performance limit was reached. But there were other parts that could have been used (newer IBM Power series IIRC).

Intel was the easiest and cheapest to meet their needs (high production yields, performance was an improvement over PPC, and they're willing to deal in quantity). Not to mention the ability to use Intel's reference designs to cut on R&D costs.

Apple has always had margins. "Now" they want to keep the difference? Always has been that way. Again.... how long have you been using Macs? :)
Difference was in terms of the price difference between the 2008 CPU's and the 2009/10's (base CPU compared to one another). Nehalem parts are cheaper, but the system MSRP didn't reflect that.

As per me and Macs, it's been an on-again (started way back with the IIe), off-again relationship. My last attempt was a 2008, and that ended in utter failure (software issues and RAID system costs). Nice UI (couldn't stand XP any longer), but it didn't work out for my usage. YMMV as they say...

This all sounds like the normal Apple margins they've had since the beginning of time...
I've not seen the margins in %'s for the PPC systems. Just the Intel and gadgets of recent vintage, and that is increasing (gone from 39% to 41% in a year, going by MR's front page articles - not pulled from thin air).

Honestly, Apple is still pretty competitive with Dell work stations (like the Precision line).
Depends. Try and run a full surface scan on the MP and watch what happens. :eek: Won't work, and this is something I have to do with each disk meant for a RAID set prior to it's creation (saves time and aggravation running down a fault/instability issue).

Again, since about 1998 Apple has always sold high end expensive work stations. I'm not sure why you think this is outside of Apple's expected market.
But they were still competitive with the market IIRC for the most part. It's a bit weird now (Quad's way overpriced, but as you move up in clock speed on DP systems, the cost differences slim down significantly).

OS X Server isn't going away... The actual SKU might go away, possibly. But the actual product? If you've worked at all in Mac enterprise, you can see a lot of reason why it would be impossible for Apple to dump it.
What are you basing this on?

It's my understanding that their main internal use is code development. There's options out there, so they're not forced to use the MP (remember, the hardware's not really any different - there's even other boards, such as Intel's server board products that use UEFI if you wish (you do have to download and flash it to the board - OTB = BIOS). As they control OS X, they could hack it to run on the Intel or similar boards if they chose.
 
It's normal for Apple, but it's disgusting that they treat enterprise gear like disposable consumer grade junk. This one really gets under my skin.

And it's totally nothing new, and not at all a sign Apple is any less serious about the Mac Pro than they have been about any other pro tower.

Hell, pretty much EVERY tower I bought has had some ATA issue. My Power Mac G3 would corrupt any drive over 10 gigs on it's own. Had to buy a new ATA PCI card to get around that.

The debate going on right now is the same debate that's been going on for years.

IIRC at that time, the PPC parts were more expensive (more defects = lower yields), as well as the performance limit was reached. But there were other parts that could have been used (newer IBM Power series IIRC).

I think Motorola had substantial yield problems, but not IBM.

I'd be willing to bet that Apple was getting a better deal on PPC parts. Rumor was IBM was actually quite unhappy with the rate Apple was pressuring them into.

Intel was the easiest and cheapest to meet their needs (high production yields, performance was an improvement over PPC, and they're willing to deal in quantity). Not to mention the ability to use Intel's reference designs to cut on R&D costs.

Alright, let's clear one thing up... Intel's reference designs are nice, but the Intel switch had absolutely positively nothing to do with price or Apple cutting down on their margins. It had entirely everything to do with the G4 sucking in laptops, and there not being a replacement chip. The Core Duo was the only way to go if Apple wanted to keep making laptops.

That's what the switch was about, and was why the towers were the last machines to switch.

(For reference, I was at WWDC2005 and I talked to Apple's engineers about it. I would say coming in second to the mobile chips reasoning was that Apple was vaguely aware that software compatibility would improve, and that there would be solutions for running Windows software. Reducing margins or cost was not at all part of the reasoning.)

Difference was in terms of the price difference between the 2008 CPU's and the 2009/10's (base CPU compared to one another). Nehalem parts are cheaper, but the system MSRP didn't reflect that.

Actually, Nehelem workstation parts are more expensive. The chips had a significant complexity increase. I would couple this with Apple losing their sweetheart deal with Intel. Remember, the 2008 Mac Pros were very much abnormally out of sync with what prices should have been. The machines actually cost less than just buying the processors alone.

You're using 2008 prices as a baseline when they are totally not at all the baseline. The 2008 Mac Pros were the best deal I had seen in years of being a Mac user.

I've not seen the margins in %'s for the PPC systems. Just the Intel and gadgets of recent vintage, and that is increasing (gone from 39% to 41% in a year, going by MR's front page articles - not pulled from thin air).

Yeah, those are pretty usual margins for Apple, pretty much since Jobs took over. Apple hasn't sold systems near margin in years.

But then again, the margins are still comparable to other workstations from Dell. Only difference being that Apple's four core Mac Pro prices are not great, mostly due to them sticking with the Xeon processors.

But they were still competitive with the market IIRC for the most part. It's a bit weird now (Quad's way overpriced, but as you move up in clock speed on DP systems, the cost differences slim down significantly).

The 2008's were extremely bizarrely competitive for Apple. Again, this is not a general pattern. :)

What are you basing this on?

I've worked with OS X Server for years and years and years. Ever since the 1.0 release back in... 1999? 98?

It's pretty irreplaceable. Some tasks could be offloaded to other server OS's, like Mail serving. But other stuff? The social integration deployment is extremely unique, the LDAP implementation is semi-proprietary, the AFP server is the most reliable one out there, the remote admin tools are unmatched...

There are a lot of reasons why Apple wouldn't be able to totally discontinue Mac OS X server. You can't simply drop in a Linux or Windows server to replace it. Sure, Apple could port all that stuff to Linux or Windows, but it would make more sense for them to make it an add on component of OS X client.

Regardless, the OS X Server components will never go away, even if the strategy changes.

It's my understanding that their main internal use is code development. There's options out there, so they're not forced to use the MP (remember, the hardware's not really any different - there's even other boards, such as Intel's server board products that use UEFI if you wish (you do have to download and flash it to the board - OTB = BIOS). As they control OS X, they could hack it to run on the Intel or similar boards if they chose.

I agree with this, only because you're saying that a company that writes a lot of code uses Mac Pros to write code... Outside of Apple? Mac Pros are heavily used in other sectors. I would assume ANY Mac at Apple us being used mainly for code development though. Kind of a non issue.

Besides, it's not like Apple doesn't care about selling machines to developers. That was the first target market for OS X, after all.

I think you're looking at Apple extremely short sightedly. There is a very strong focus on pros at Apple. Apple is spending a lot of time rewriting Final Cut (which honestly, is taking about the amount of time I thought it would, considering the changes that need to be made.) I can't see Apple rewriting Final Cut to work on 12 core machines and high end GPUs, only to cut the Mac Pro. It simply doesn't logically make sense.

(FYI - This Apple abandoning the Pro market panicing has been coming up continuously ever since the iPod was released. It's really nothing new, and Apple's Pro machines have never gone anywhere.)
 
If Apple stopped selling MP's I bet the Hack market would expand dramatically. Many would pay on the gray market for software and utilities to install OS X on DIY boxes, thus stimulating more development.

After all the Mac "experience" is purely based on OS X. The MP hardware is commodity stuff in a nice looking case.

I wouldn't say drastically. It may increase slightly. First, mostly the average user would stick to hackentoshes due to cheaper price. Semi-pro to professional users are probably not going to trust the instability of these systems on something they use to make a living with. I would say most are getting the Mac Pro for its power, otherwise an imac would suffice.

I've always bought Mac primarily for the hardware, the operating system is just a bonus. I do prefer UNIX based OSes however.
 
I have owned Macs since the B/W G3s as they were finally able to use generic components such as ram HDD's and to an extent PCI cards. This made them a very cost effective option as the upgrade ability was enormous. The G5 / MP market saw a price jump that put this option outside the home user/enthusiast market. To this end I have always bought into the second hand market as I love to option my equipment.
Therefore if the PRO market is squeezed through price then not only are the businesses cost of setup increased but the re saleability to bottom feeders such as myself is also prohibitive. This means MTBR will therefore increase reducing sales, reducing profitability.
Just saying the knock on effect can perhaps be underestimated in the corporate world.
BTW I am actually looking at replacing my Games PC with a bootcamp win7 setup on my 2006 mac pro, saving me money by having only one setup to upgrade.
 
What would you do if Apple discontinued the Mac Pro?

I hope they won't do it, as MacPro is the only professional scalable system made by Apple. On the other hand, I don't see myself working on some dell under windows, that's for sure. So I'll stick with the most powerful / professional system available with Mac OS.

But once again, I don't believe it'll happen: they will produce professional desktops as long as professionals will need them and thus will continue to buy these machines.
 
My Power Mac G3 would corrupt any drive over 10 gigs on it's own. Had to buy a new ATA PCI card to get around that.
Users shouldn't have to do things like this to solve such simple problems. This sort of thing is disgusting, and isn't typically accepted by enterprise users. It gives the impression of incompetence, lack of effort, ....

MP users do seem to be an exception in this particular market.

I think Motorola had substantial yield problems, but not IBM.

I'd be willing to bet that Apple was getting a better deal on PPC parts. Rumor was IBM was actually quite unhappy with the rate Apple was pressuring them into.
I know Motorola had the problems.

As per pricing, I don't know what deals were in place. All I have access to are published Quantity pricing lists and/or what pricing I can get from component distributors. They weren't cheap to anyone else though, and why they weren't used much at that time. Now, PPC's have shown up in RAID cards and other devices (AIO printers IIRC).

Alright, let's clear one thing up... Intel's reference designs are nice, but the Intel switch had absolutely positively nothing to do with price or Apple cutting down on their margins. It had entirely everything to do with the G4 sucking in laptops, and there not being a replacement chip. The Core Duo was the only way to go if Apple wanted to keep making laptops.
I do recall that the laptops were an issue, and played their role in the switch to Intel parts. But also keep in mind, I'm keeping it to the enterprise parts (MP and the now defunct XServe to a lesser extent), not the laptops as this discussion is about the MP, not the entire lineup.

Now as per how R&D figures into the MP, I take it you've never costed out engineering R&D when working from scratch. It's not cheap, especially when done properly (nothing is skipped, such as testing prospective components for a design), and management watches that sort of thing like very closely (and complains bitterly over every cent). Most companies are risk aversive right now, so they don't want to take any chances. Thus they're looking for solutions that as much of the work as possible has been done. Intel's parts combined with Reference Designs fit the bill quite nicely as a result.

Actually, Nehelem workstation parts are more expensive. The chips had a significant complexity increase. I would couple this with Apple losing their sweetheart deal with Intel. Remember, the 2008 Mac Pros were very much abnormally out of sync with what prices should have been. The machines actually cost less than just buying the processors alone.
Where are you getting your CPU costs from?

The SP Nehalem CPU's were $284 at the time of release according to the published quantity pricing sheet (the E5520 was also cheaper for the base Octad systems in 2009; $373 per). The E5462 (base system's CPU for 2008) was more expensive than either of them ($958 per at initial release).

A pair of E5520's was cheaper than a single E5462 according to the initial quantity pricing list. :eek:

Even if Apple didn't get a deal with Intel (based on quantities purchased BTW), the pair of processors without such a deal would have still been cheaper than the MSRP of the base 2008 Octad system. The remaining balance would still have covered the rest of the system components, assembly,.... Had this been the case (paid published pricing that year), profit would have been lean for the MP. So for that year, I agree that their profits were increased as a result of the quantity pricing deal with Intel. It's also quite standard as to how to build and sell computers when it comes to buying components.

Now as to why that deal didn't happen with Intel over Nehalem and Westmere based Xeons, there's one logical explanation. Apple didn't buy as many parts, so there was insufficient quantities ordered to get preferential treatment on pricing.

You're using 2008 prices as a baseline when they are totally not at all the baseline. The 2008 Mac Pros were the best deal I had seen in years of being a Mac user.
I've already mentioned that PPC isn't really a consideration in this case due to the different tech and suppliers, and I've stuck to Intel parts only. Apples and Oranges otherwise.

So for this instance, 2006 - 2008 Intel based MP's have relevance to the 2009/10 systems in terms of MSRP and margins.

But then again, the margins are still comparable to other workstations from Dell. Only difference being that Apple's four core Mac Pro prices are not great, mostly due to them sticking with the Xeon processors.
This goes back to the fact Dell doesn't limit their parts availability as Apple does (more CPU options on the Dell's - HP too), and weren't eligible for the discounts Apple had negotiated with Intel for the earlier Intel based MP's.

Both Dell and HP are corporations too, which mean they're in business to make money. And they didn't lower their margins to make their systems less expensive than what was published on the internet. BTW, you do get better pricing when using the phone instead of the web page for both Dell and HP (so real pricing is harder to nail down).

But Yes, the earlier MP's competed well against the Dell and HP offerings for the time.

But that's past, and I'm dealing with what's going on now, and the conditions that are present and on the next horizon (say next 2 years or so).

It's pretty irreplaceable. Some tasks could be offloaded to other server OS's, like Mail serving. But other stuff? The social integration deployment is extremely unique, the LDAP implementation is semi-proprietary, the AFP server is the most reliable one out there, the remote admin tools are unmatched...

There are a lot of reasons why Apple wouldn't be able to totally discontinue Mac OS X server. You can't simply drop in a Linux or Windows server to replace it. Sure, Apple could port all that stuff to Linux or Windows, but it would make more sense for them to make it an add on component of OS X client.
There's options from an add-on to the client edition, to unlocking it for use on other systems (not likely unless they do away with all computer lines, and go devices only).

But it's harder to justify development if the systems it was designed for have gone way of the Dodo (XServe). Granted the MP can run it without any issues (certainly has the performance), but it comes down to whether or not it's profitable to continue producing it.

The indicators I'm looking at don't give that impression to me at all. They're all saying the sales volume is decreasing, which never bodes well for a product line, as at some point, it's no longer profitable = it gets EOL'ed.


I agree with this, only because you're saying that a company that writes a lot of code uses Mac Pros to write code... Outside of Apple? Mac Pros are heavily used in other sectors. I would assume ANY Mac at Apple us being used mainly for code development though. Kind of a non issue.
If you read it again, this statement was based on what Apple uses them for, not users outside of Apple.

For the non-Apple employee user, I've the impression that most are used in creative industries rather than heavy number crunching in the corporate world (never seen an XServe cluster, but rather PC and IBM based). Seems they do have some presence in the academic community (in terms of scientific/engineering use), but I'm still not sure to what extent.

As far as development, if they're focusing all their efforts on iOS, then they'll likely to see an iMac as a viable system for that (particularly if they can add a high speed interface for data storage - say 10Gb/s). I know this sounds like blasphemy to you, but this is what I'm accustomed to from the business side (engineers will argue against it, but ultimately lose).

I think you're looking at Apple extremely short sightedly. There is a very strong focus on pros at Apple. Apple is spending a lot of time rewriting Final Cut (which honestly, is taking about the amount of time I thought it would, considering the changes that need to be made.) I can't see Apple rewriting Final Cut to work on 12 core machines and high end GPUs, only to cut the Mac Pro.
What you call short sighted is profit based decision making.

As per the fate of FCP, we'll have to wait and see. It will be an indicator of what direction they're ultimately going. But don't expect an announcement of EOL until the last second, so they don't inspire panic and the cessation of sales of any remaining systems if they are going to abandon it in the not too distant future.
 
I would get a fully loaded top of the line iMac as the level of work I do now doesn't absolutely require the potential of the MP. So to say I could probably do just fine in PS/IND on a Quad core iMac.

Friends and colleagues in the video and 3D production industries would be forced to go PC or Hackintosh because of the exotic PCI card requirements they have.
 
If you read it again, this statement was based on what Apple uses them for, not users outside of Apple.

For the non-Apple employee user, I've the impression that most are used in creative industries rather than heavy number crunching in the corporate world (never seen an XServe cluster, but rather PC and IBM based). Seems they do have some presence in the academic community (in terms of scientific/engineering use), but I'm still not sure to what extent.

As far as development, if they're focusing all their efforts on iOS, then they'll likely to see an iMac as a viable system for that (particularly if they can add a high speed interface for data storage - say 10Gb/s). I know this sounds like blasphemy to you, but this is what I'm accustomed to from the business side (engineers will argue against it, but ultimately lose).


What you call short sighted is profit based decision making.

As per the fate of FCP, we'll have to wait and see. It will be an indicator of what direction they're ultimately going. But don't expect an announcement of EOL until the last second, so they don't inspire panic and the cessation of sales of any remaining systems if they are going to abandon it in the not too distant future.

1) It really depends what kind of application your developing. I prefer the Tower systems for developing as (a) Im in the Digital Media industry as well and so need a powerful FCP box and (b) Some of my development relies heavily on hardware cards, so I like my Mac Pro as it lets me bung in said system to test the Firmware. - That and I love XCode - Its fantastic.
2) Plenty of Mac Pros are used in industry (Places like twitter, google etc rely on Mac Pros, as does Microsofts Mac Division), and plenty more are floating around in education as everyone likes its ability to both check email and create beautiful presentations as well as run your prehistoric UNIX applications from the 70s (far far too many of these still in use *shudder*)
 
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Apple will never stop producing workstations -- as long as there will be need for workstations. Workstation has never been a mass consumption product, and yet every more or less serious brand produced and keeps producing it. They only will retain their higher price tag as every exclusive product on the market.
 
Users shouldn't have to do things like this to solve such simple problems. This sort of thing is disgusting, and isn't typically accepted by enterprise users. It gives the impression of incompetence, lack of effort, ....

MP users do seem to be an exception in this particular market.

I agree, but that's irrelevant to the current discussion.

(As for abnormal to the market, have you ever used a Dell Precision? Those things have way more problems.)

I know Motorola had the problems.

As per pricing, I don't know what deals were in place. All I have access to are published Quantity pricing lists and/or what pricing I can get from component distributors. They weren't cheap to anyone else though, and why they weren't used much at that time. Now, PPC's have shown up in RAID cards and other devices (AIO printers IIRC).

These PowerPC's are an entirely different branch targeted at embedded usage. This was actually a huge issue for Apple. IBM was more interested in building embedded PowerPC's, which are an entirely different feature set than the desktop ones.

I do recall that the laptops were an issue, and played their role in the switch to Intel parts. But also keep in mind, I'm keeping it to the enterprise parts (MP and the now defunct XServe to a lesser extent), not the laptops as this discussion is about the MP, not the entire lineup.

The workstations really had absolutely nothing to do with the Intel switch, they just came along for the ride (notice that the Mac Pro and XServes were the last machines to switch over.)

Now as per how R&D figures into the MP, I take it you've never costed out engineering R&D when working from scratch. It's not cheap, especially when done properly (nothing is skipped, such as testing prospective components for a design), and management watches that sort of thing like very closely (and complains bitterly over every cent). Most companies are risk aversive right now, so they don't want to take any chances. Thus they're looking for solutions that as much of the work as possible has been done. Intel's parts combined with Reference Designs fit the bill quite nicely as a result.

From what I've heard, Apple has absolutely nothing to do with the design of the internals of the Mac Pro. It is ENTIRELY an Intel reference design. The Mac Pro's internals aren't even at all designed in Cupertino.

Apple does absolutely NO R&D on the Mac Pro.

Where are you getting your CPU costs from?

The SP Nehalem CPU's were $284 at the time of release according to the published quantity pricing sheet (the E5520 was also cheaper for the base Octad systems in 2009; $373 per). The E5462 (base system's CPU for 2008) was more expensive than either of them ($958 per at initial release).

A pair of E5520's was cheaper than a single E5462 according to the initial quantity pricing list. :eek:

The E5520 was kind of a special case... Apple's low end pricing has always pretty much sucked.

I've already mentioned that PPC isn't really a consideration in this case due to the different tech and suppliers, and I've stuck to Intel parts only. Apples and Oranges otherwise.

So for this instance, 2006 - 2008 Intel based MP's have relevance to the 2009/10 systems in terms of MSRP and margins.

PPC is totally a consideration. It's not Apple's and Orange's, it's Apple workstation line. Why would you think the prices would change when Apple moved from PPC to Intel? Apple is going to continue selling Intel machines at the same margins they sold PPC machines at. You can't dismiss the PPC Macs, it shows Apple's margin history.

Even if Apple didn't get a deal with Intel (based on quantities purchased BTW), the pair of processors without such a deal would have still been cheaper than the MSRP of the base 2008 Octad system. The remaining balance would still have covered the rest of the system components, assembly,.... Had this been the case (paid published pricing that year), profit would have been lean for the MP. So for that year, I agree that their profits were increased as a result of the quantity pricing deal with Intel. It's also quite standard as to how to build and sell computers when it comes to buying components.

...a Mac costing more than the parts? And this is not normal Apple how? :)

Now as to why that deal didn't happen with Intel over Nehalem and Westmere based Xeons, there's one logical explanation. Apple didn't buy as many parts, so there was insufficient quantities ordered to get preferential treatment on pricing.

It was probably because the switch was years old by this point. Intel probably gave Apple preferential treatment to get them to switch, it wasn't going on forever.

This goes back to the fact Dell doesn't limit their parts availability as Apple does (more CPU options on the Dell's - HP too), and weren't eligible for the discounts Apple had negotiated with Intel for the earlier Intel based MP's.

Both Dell and HP are corporations too, which mean they're in business to make money. And they didn't lower their margins to make their systems less expensive than what was published on the internet. BTW, you do get better pricing when using the phone instead of the web page for both Dell and HP (so real pricing is harder to nail down).

There is also the issue that Intel can't legally give preferential deals any more because they got sued.

But that's past, and I'm dealing with what's going on now, and the conditions that are present and on the next horizon (say next 2 years or so).

The past has everything to do with this, because you're trying to argue there has been a change, when nothing has changed at all. You're arguing as if the 2008 systems are the baseline, and they totally aren't. You have to take Apple's entire Pro line history into account. When you do that, the 2008 Mac Pros are the outlier, not the 09's/10's.

There's options from an add-on to the client edition, to unlocking it for use on other systems (not likely unless they do away with all computer lines, and go devices only).

But it's harder to justify development if the systems it was designed for have gone way of the Dodo (XServe). Granted the MP can run it without any issues (certainly has the performance), but it comes down to whether or not it's profitable to continue producing it.

The indicators I'm looking at don't give that impression to me at all. They're all saying the sales volume is decreasing, which never bodes well for a product line, as at some point, it's no longer profitable = it gets EOL'ed.

Except for the whole problem that if Apple discontinues any sort of server development, there are no more servers to manage Mac clients.

This isn't a question that's contained to the server line for Apple. This is a question of strategy for the entire Mac line and Mac OS X client. If they don't make an OS X Server, they won't have anything to serve Macintosh specific services, and they're going to lose a lot of customers.

This is a bigger question than "Is Mac OS X Server making us a lot of money?" This is a question of "If we stop making Mac OS X Server, will our educational institutional customers keep buying Macbooks?"

If you read it again, this statement was based on what Apple uses them for, not users outside of Apple.

I was very clear on that. I was questioning the wisdom of making the argument that a company that only does programming uses their machines for programming.

For the non-Apple employee user, I've the impression that most are used in creative industries rather than heavy number crunching in the corporate world (never seen an XServe cluster, but rather PC and IBM based). Seems they do have some presence in the academic community (in terms of scientific/engineering use), but I'm still not sure to what extent.

Never seen an XServe cluster? Really? I can think of quite a few off the top of my head, one cluster was the fastest in the world for a while, I think it's still in the top 10.

Hell, I did cluster research at a Linux based university, and even they had a few XServes.

I don't think you've spent very much time looking if you've never seen an XServe cluster. Apple's cluster software, XGrid, has still been pretty popular.

Last I heard though, a lot of clusters were moving back to Mac Pros, both for the graphics cards, and something about better cooling.

As far as development, if they're focusing all their efforts on iOS, then they'll likely to see an iMac as a viable system for that (particularly if they can add a high speed interface for data storage - say 10Gb/s). I know this sounds like blasphemy to you, but this is what I'm accustomed to from the business side (engineers will argue against it, but ultimately lose).

This doesn't sound like blasphemy to me, this sounds like you have no idea what you're talking about if you're suggesting such a thing. So much so that I've never even heard a whisper of such an idea coming from anyone I know at Apple. Even the business side. It's pretty much beyond ridiculous.

They are also certainly not focusing all their efforts on iOS. They have the same number of engineers on Mac OS X as they did before.

What you call short sighted is profit based decision making.

As per the fate of FCP, we'll have to wait and see. It will be an indicator of what direction they're ultimately going. But don't expect an announcement of EOL until the last second, so they don't inspire panic and the cessation of sales of any remaining systems if they are going to abandon it in the not too distant future.

Apple's going to cut their profitable FCP and Mac Pro lines to make profit? What exactly makes sense about that?

And again, Apple is working on a ground up re-write of Final Cut only to cut it? These arguments you're making don't make any sense at all.

(Also, for reference, I have privately seen VERY firm hints that Final Cut is not going anywhere and is going to be around for a long time.)
 
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I would manage with our other Macs... iMac, MacBook Pro, MacBook Air...

...and a Cray CX1

http://www.cray.com/Products/CX/Systems.aspx

Also, my son and I build a new PC in a rackmount case about once a year and slide it into a rackmount cabinet alongside projects from previous years. Without a Mac Pro I guess I would get more use out of those than I do at present. Maybe.
 
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We need workstations. MPs aren't going anywhere.
 
I agree, but that's irrelevant to the current discussion.
The tone of your other posts indicates that such issues are acceptable in the enterprise market.

These PowerPC's are an entirely different branch targeted at embedded usage. This was actually a huge issue for Apple. IBM was more interested in building embedded PowerPC's, which are an entirely different feature set than the desktop ones.
The pricing information was valid at that time. They were expensive. As per them being downgraded into embedded products, that's normal (way of extending the lifespan of the design, and it's done so long as it's both profitable and viable).

The workstations really had absolutely nothing to do with the Intel switch, they just came along for the ride (notice that the Mac Pro and XServes were the last machines to switch over.)
No, they weren't the primary reason for the change, but they still had to be taken into consideration (all their computer products had to be in order to be sure the change would be viable from a financial as well as technical POV).

From what I've heard, Apple has absolutely nothing to do with the design of the internals of the Mac Pro. It is ENTIRELY an Intel reference design. The Mac Pro's internals aren't even at all designed in Cupertino.

Apple does absolutely NO R&D on the Mac Pro.
No they don't do it themselves, as they chose to outsource it. But it's not free. They pay to have it done.

The change-over reduced their R&D, as they could use ODM's for the MP (Intel for boards for 2006 - 2008, and Foxconn for assembly, then later moved to Foxconn for it all). Companies like Foxconn have more experience with Intel parts (or AMD) vs. PPC, which means they're better equipped from a knowledge perspective to get the job done on time and within budget.

What you need to realize, is that even with Intel's reference designs, there's still R&D to be done. Additional components for features have to be taken into the design (i.e. FireWire chip, and PWM controllers not specified in the Intel designs), as well as board layout (PCB work), parts selection (BOM = Bill of Materials, as there's more than just Intel parts on the board), and validation/verification testing to confirm it all works. And that's just the hardware....

The E5520 was kind of a special case... Apple's low end pricing has always pretty much sucked.
It was the result of a change in how Intel designed and sold the parts. The enterprise parts are closer in design to the consumer parts (high end desktop/enthusiast parts) than previous Xeons.

The W35xx was the same as the i7-9xx parts (ECC was disabled in the memory controller on the consumer version). Otherwise, they were the same. Add a second QPI, and you had the DP parts. Systems engineering at work, and they did it well that time around, and it's followed the Westmere, as it's the same architecture.

The cost reduction on the CPU's had nothing to do with Apple, but their pricing didn't reflect the reduction in costs either (both CPU and reduced R&D).

PPC is totally a consideration. It's not Apple's and Orange's, it's Apple workstation line. Why would you think the prices would change when Apple moved from PPC to Intel? Apple is going to continue selling Intel machines at the same margins they sold PPC machines at. You can't dismiss the PPC Macs, it shows Apple's margin history.
Different designs and different parts were used (not just the CPU changed; disk controllers, Ethernet, audio,... were all by different vendors = different design = drastically different boards). The PPC designs would have cost them more in R&D as well, as there wasn't that many OEM/ODM's that had the experience to do it all that well (make time and budget requirements).

...a Mac costing more than the parts? And this is not normal Apple how? :)
Which isn't even close to what I said.

Even if there was no price break on CPU's, there would still have been a profit. But the discount that existed at that time increased that profit by whatever those savings per system were.

It was probably because the switch was years old by this point. Intel probably gave Apple preferential treatment to get them to switch, it wasn't going on forever.
It's not so much preferential treatment, as it is to do with quantities purchased (standard practice when buying components - you get discounts with increased quantity up to a certain point).

Preferential treatment is getting parts early.

The past has everything to do with this, because you're trying to argue there has been a change, when nothing has changed at all. You're arguing as if the 2008 systems are the baseline, and they totally aren't. You have to take Apple's entire Pro line history into account. When you do that, the 2008 Mac Pros are the outlier, not the 09's/10's.
PPC was different technology. Moving to a different CPU supplier changed the entire circuit design from the ground up, which has a direct effect on costs.

So they are not the same. That shift created a point in which the old metrics no longer applied.

Except for the whole problem that if Apple discontinues any sort of server development, there are no more servers to manage Mac clients.
If it's not making a profit, they don't care. It really is as simple as that.

This isn't a question that's contained to the server line for Apple. This is a question of strategy for the entire Mac line and Mac OS X client. If they don't make an OS X Server, they won't have anything to serve Macintosh specific services, and they're going to lose a lot of customers.
And this is the crux.

You're presuming that the enterprise market has a significant market in Apple's economy. But there's no indication that's actually the case. When you look at their published earnings, the profits are primarily generated by the consumer products, not the enterprise lines (XServe, MP, and all their professional software combined - FCP, FCS, OS X Server, ....).

This is a bigger question than "Is Mac OS X Server making us a lot of money?" This is a question of "If we stop making Mac OS X Server, will our educational institutional customers keep buying Macbooks?"
Any company in business is out there to make a profit. It's their whole reason for existence, despite any rhetoric.

As per institutional customers ceasing buying the Macbooks, iPads, ..., they'll continue to buy, as those are the consumer products their staff want.

Never seen an XServe cluster? Really? I can think of quite a few off the top of my head, one cluster was the fastest in the world for a while, I think it's still in the top 10.
As I mentioned, I don't spend my time in educational institutions. Mine is spent in the corporate world, and of those I've had access to or know of, thye're not based on XServes or any other Apple product. PC's of a few brands, Sun, Silicon Graphics, and IBM are those that I tend to see (latter systems aren't Intel or AMD based equipment).

Last I heard though, a lot of clusters were moving back to Mac Pros, both for the graphics cards, and something about better cooling.
Of Apple products, this makes sense, as the XServes ran hot.

This doesn't sound like blasphemy to me, this sounds like you have no idea what you're talking about if you're suggesting such a thing. So much so that I've never even heard a whisper of such an idea coming from anyone I know at Apple. Even the business side. It's pretty much beyond ridiculous.
Yet not too long ago, there were those that said the XServe wasn't going anywhere either. Nor was there a peep from Apple or a leak from an employee that surfaced. Yet not too long ago, the announcement was published that it's axed.

So it's not uncommon for things like this to stay underground until the last instant as to not affect sales of existing stocks. It's also kept to a precious few people as well, and as secretive as Apple is, those that know would have enough sense not to leak that information for fear of losing their jobs (i.e. wouldn't even tell their spouses, parents, siblings,...).

They are also certainly not focusing all their efforts on iOS. They have the same number of engineers on Mac OS X as they did before.
But those resources have been reduced from what I've seen, as they've been pulled to address iOS and other consumer based projects.

Apple's going to cut their profitable FCP and Mac Pro lines to make profit? What exactly makes sense about that?
Again, not what I said.

There's a point with price increases that they'll no longer produce a profit (ye olde Supply and Demand economics). And there're indications surfacing that the profits are reducing, and will continue to do so.

And again, Apple is working on a ground up re-write of Final Cut only to cut it? These arguments you're making don't make any sense at all.

(Also, for reference, I have privately seen VERY firm hints that Final Cut is not going anywhere and is going to be around for a long time.)
Did you miss the mention of 2013 being the point the MP will be at a crisis point due to Intel's moves combined with Apple's pricing?

I've not posed that the MP will be cut tomorrow. But it's not unrealistic for this to happen in the next few years (no redesign to follow the 2013 MP's), unless they make some serious changes to what the MP is in terms of design (i.e. cease using Xeons) or their pricing model.
 
The tone of your other posts indicates that such issues are acceptable in the enterprise market.

Before I got into software programming, I worked in the Apple enterprise market for years. As bad as Apple was, our Microsoft hardware/software was always worse. Bugs are part of working in enterprise. If you're looking for a "bulletproof" system, you're probably looking at servers that are multiples of $10k, not a Windows or Mac server.

It's just the way things are. Would I like everything to be bug free? Yes. But for every annoyance I can think of with OS X/OS X Server, I can think of one on Windows.

No, they weren't the primary reason for the change, but they still had to be taken into consideration (all their computer products had to be in order to be sure the change would be viable from a financial as well as technical POV).

I'm sure they were taken into consideration, but the G5 wasn't terribly hurting. Not nearly as much as the Powerbook G4's. As I said, they were the last machines to switch over. It definitely wasn't a priority. There was even one more G5 revision after the Intel switch was announced.

No they don't do it themselves, as they chose to outsource it. But it's not free. They pay to have it done.

If they do pay, it's not much. My impression is that Intel does it as a service to Apple.

The change-over reduced their R&D, as they could use ODM's for the MP (Intel for boards for 2006 - 2008, and Foxconn for assembly, then later moved to Foxconn for it all). Companies like Foxconn have more experience with Intel parts (or AMD) vs. PPC, which means they're better equipped from a knowledge perspective to get the job done on time and within budget.

Uhhhhh... Really? I don't think this argument makes any sense. Foxconn doesn't give a crap about the processor design. Besides, all the manufacturing companies are building PPC's these days.

I mean, it's not like they see a PPC board and processor, and their heads all explode while they try to figure out how to put the parts together. Apple used these production lines for years in building PPC machines.

What you need to realize, is that even with Intel's reference designs, there's still R&D to be done. Additional components for features have to be taken into the design (i.e. FireWire chip, and PWM controllers not specified in the Intel designs), as well as board layout (PCB work), parts selection (BOM = Bill of Materials, as there's more than just Intel parts on the board), and validation/verification testing to confirm it all works. And that's just the hardware....

Which is all done at Intel.

I'm honestly not sure where you are going with this. Yes, designing the Mac Pro possibly costs money. But the line is profitable. Soooooo, as long as the line is profitable, why does the design costs for the Mac Pro matter?

Different designs and different parts were used (not just the CPU changed; disk controllers, Ethernet, audio,... were all by different vendors = different design = drastically different boards). The PPC designs would have cost them more in R&D as well, as there wasn't that many OEM/ODM's that had the experience to do it all that well (make time and budget requirements).

Yes, Apple did have to design the PPC boards in house, but they certainly weren't doing it by themselves...

Honestly, you keep talking about R&D, but this sort of R&D is usually the cheapest part of getting a product to market.

Which isn't even close to what I said.

Even if there was no price break on CPU's, there would still have been a profit. But the discount that existed at that time increased that profit by whatever those savings per system were.

I don't think you get what I'm saying...

Apple likely wanted to make waves in the market when they entered. They knew that during the transition people were at risk of buying PC's instead of moving over the Intel Macs, especially Pros. They likely got a sweetheart deal from Intel to massively undercut their competitors during the transition to keep people on the platform.

Now that the transition is over, prices have returned to normal.

It's not so much preferential treatment, as it is to do with quantities purchased (standard practice when buying components - you get discounts with increased quantity up to a certain point).

Preferential treatment is getting parts early.

Unless you're Apple. Apple is very widely known to demand discounts on parts.

PPC was different technology. Moving to a different CPU supplier changed the entire circuit design from the ground up, which has a direct effect on costs.

So they are not the same. That shift created a point in which the old metrics no longer applied.

Huh? Not that much of an effect on costs. It's not like Apple was building the processors. Today's Nehelem and the G5 are actually EXTREMELY close in design.

I think you're placing way too much importance on this. Yes, the CPU supplier changed. But what really changed in the circuit design? The CPU and the chipset. While a change, it's not like they had to build a new machine for scratch. The USB controllers, graphics card, firewire controllers, display, disk drives, optical drives, case, wireless card... They were all the same components.

Again, hardware R&D is usually the smallest cost. The XServe was cut because it was too expensive to keep a production line around, not because it was too expensive for R&D

If it's not making a profit, they don't care. It really is as simple as that.

And the Mac Pro is very profitable. So why are we having this discussion?

And this is the crux.

You're presuming that the enterprise market has a significant market in Apple's economy. But there's no indication that's actually the case. When you look at their published earnings, the profits are primarily generated by the consumer products, not the enterprise lines (XServe, MP, and all their professional software combined - FCP, FCS, OS X Server, ....).

Yeah, I think you're not looking at this right... Think about this one. If you're an enterprise, why are you buying Mac servers? Do you just buy a server and put it in a room somewhere? Or are you going to be buying consumer Macintoshes for people to use with that server?

Mac OS X Server is a driver for enterprise buying consumer machines. Servers aren't independent machines. They're a server, for existing clients, by definition. You don't buy a server without clients, and if you're an enterprise, you certainly don't buy clients without a server.

In the last earnings report call, Apple reported massive growth in enterprise sales. You can bet all those companies will want a server for their consumer machines they just bought.

Any company in business is out there to make a profit. It's their whole reason for existence, despite any rhetoric.

As per institutional customers ceasing buying the Macbooks, iPads, ..., they'll continue to buy, as those are the consumer products their staff want.

Again, if there is no server, they will stop buying. Enterprise does not buy devices they cannot manage. You're looking at this all wrong. Server and consumer products are not two different categories. In enterprise, server products are a requirement for buying consumer machines. It's like building a house with no foundation. If OS X Server was discontinued, I know several extremely large Apple clients who would stop buy Apple consumer hardware.

Of Apple products, this makes sense, as the XServes ran hot.

They ran normal for a 1U. The problem is that you can't put a good OpenCL card in a 1U server. And most clusters are moving to using GPUs to ramp up their computing power.

Yet not too long ago, there were those that said the XServe wasn't going anywhere either. Nor was there a peep from Apple or a leak from an employee that surfaced. Yet not too long ago, the announcement was published that it's axed.

Who said that? The XServe wasn't the first server hardware to go, XRaid was, and it pretty clearly cast a shadow on XServe.

I think it was a dumb move, but it's not at all on the same level as Apple cutting their server line entirely.

So it's not uncommon for things like this to stay underground until the last instant as to not affect sales of existing stocks. It's also kept to a precious few people as well, and as secretive as Apple is, those that know would have enough sense not to leak that information for fear of losing their jobs (i.e. wouldn't even tell their spouses, parents, siblings,...).

Despite what you may think, Apple does share information on upcoming machines with enterprise. One shop I worked for knew about the iMac before it launched, and we got numerous dates for the Intel Mac launches.

They won't bring you the machine to look at, but they do tell you general information.

(For example: I knew roughly about the original Macbook before it launched. The shop I worked at actually literally got the first ones off the line.)

But those resources have been reduced from what I've seen, as they've been pulled to address iOS and other consumer based projects.

Again, as I said, Apple has the same number of Mac OS X engineers that they did before. Nothing has been reduced. They're building/buying additional office space for the iOS engineers.

Again, not what I said.

There's a point with price increases that they'll no longer produce a profit (ye olde Supply and Demand economics). And there're indications surfacing that the profits are reducing, and will continue to do so.

Did you miss the mention of 2013 being the point the MP will be at a crisis point due to Intel's moves combined with Apple's pricing?

I've not posed that the MP will be cut tomorrow. But it's not unrealistic for this to happen in the next few years (no redesign to follow the 2013 MP's), unless they make some serious changes to what the MP is in terms of design (i.e. cease using Xeons) or their pricing model.

The Mac Pro would have to take a simply huge cut in sales for Apple to discontinue it. Simply massive.

Like I said, none of what you're saying fits at all with what's going on. Apple is working on a long term, multi year rebuild of FCP, optimizing it for high end hardware, and you're saying Apple is going to cut the Mac Pro in 5 or 6 years? Doesn't make any sense at all.

Apple sells a lot of Mac Pros. A lot. If Intel's prices go up, workstation prices are going to go up across the board, and Apple will continue to sell Mac Pros to workstation users. What you seem to be worried about is people who don't need workstations not buying Mac Pros, and there are plenty of workstation users who will continue paying workstation prices, whatever those prices may be, for Mac Pro hardware.

The workstation user market is an entirely different market than say, enterprise. Hardware costs are honestly the least of our concerns.
 
See? Hardware costs are not the biggest concern. :p

(Not that I wouldn't love a Mac compatible Tesla...)
Which is nothing more than a PC workstation with one or multiple nVidia Tesla graphics cards. You can even go buy a Dell, HP, ... so long as it has enough slots for the desired configuration, or build your own (single system or a cluster).

Obviously there are those that can benefit from such add-ons to an existing system or ready made systems using Tesla cards (full warranty support by a single point of contact is desirable whenever possible), and they'll pay for those systems if they've the budget and can prove it's financially viable (system earns more $$$ per user than otherwise possible). But they're also a sub-group of the market (in this case, a niche within a niche = graphics users that can benefit from the GPGPU capability those cards can offer).
 
Getting back to the threads original purpose, I revise my answer, instead Im going to buy as many as I physically can get credit for (thinking 100+) and then sell them on eBay for a premium afterwards while keeping 5 for myself. (If Apple wont profit from the best section of the market I will)
 
Which is nothing more than a PC workstation with one or multiple nVidia Tesla graphics cards. You can even go buy a Dell, HP, ... so long as it has enough slots for the desired configuration, or build your own (single system or a cluster).

Obviously there are those that can benefit from such add-ons to an existing system or ready made systems using Tesla cards (full warranty support by a single point of contact is desirable whenever possible), and they'll pay for those systems if they've the budget and can prove it's financially viable (system earns more $$$ per user than otherwise possible). But they're also a sub-group of the market (in this case, a niche within a niche = graphics users that can benefit from the GPGPU capability those cards can offer).

Tesla is great for OpenCL and CUDA apps, both of which are becoming a larger and larger segment in creative fields.

Imagine Premiere Pro CS5 on the Mac with a Tesla... Or the next OpenCL compatible Final Cut with a Tesla.... mmmmmmmm...

In a way, the Mac is almost the perfect platform for Tesla, with the GPGPU push currently going on.

(I've programmed for Tesla before and they really are incredibly useful cards.)
 
Did you miss the mention of 2013 being the point the MP will be at a crisis point due to Intel's moves combined with Apple's pricing?
Please explain this point further. I read back through all of your posts in this thread and could not find the 2013 part. That would be around the time of the Haswell Xeon. Is the coming crisis point related to that hardware?
 
Please explain this point further. I read back through all of your posts in this thread and could not find the 2013 part. That would be around the time of the Haswell Xeon. Is the coming crisis point related to that hardware?

I would guess that it would have to do with rising Xeon costs, but I could totally be wrong.

Regardless, as long as the cost of all workstations are going up across the board, it doesn't matter.
 
Please explain this point further. I read back through all of your posts in this thread and could not find the 2013 part. That would be around the time of the Haswell Xeon. Is the coming crisis point related to that hardware?
It's part of it, but not the whole story.

The Xeons are getting more and more complex, not just an increasing core count, which increases costs to some extent (even though the process will be smaller than what's being used now, the additional complexity is still going to push the die size up - there's a correlation with pin counts, as we're due for the LGA2011 socket with Sandy Bridge's DP and MP enterprise parts). The biggest price increases from Intel will be seen with the DP or MP parts (dual processor and multi-processor respectively BTW).

But Apple's pricing will be the other, particularly when you look at what's happened since the 2009 release. The pricing continued with the 2010's, so there's no indication they plan to change their pricing structure to better compete with the competition.

Intel's done a good job so far with keeping the SP Xeons pricing low by using the same part for the enthusiast desktop models (i7-9xx parts using an LGA1366 socket, and differentiating the parts by disabling the ECC portion of the memory controller - that's it). Economy of scale has been used effectively here. But the increasing core count in future processors will create a divide here, as the software used by consumers (enthusiasts or otherwise), can't take advantage of that many cores (most don't have support for multi-threading yet, let alone true n core multi-threading which is what would be needed to be able to take advantage of that many cores - at least an n = 4 core fixed limit would be better than nothing, as it's possible to run 2x of such applications simultaneously).

Now understand, that the price difference between the 2009/10 systems on the SP versions (single processor = Quad or Hex core only) has been due to Apple's pricing, as other vendors sell systems based on the same CPU's for less money. About $1k USD cheaper for other brands that use the same CPU in base Quad in fact. But the pricing will go up due to the additional complexity on Intel's end due to the fact they're going to differ from the consumer parts.

When you consider the cost of of those parts and Apple's margins by the time we hit Haswell, the current indications point to "it's not going to be pretty".

I would guess that it would have to do with rising Xeon costs, but I could totally be wrong.

Regardless, as long as the cost of all workstations are going up across the board, it doesn't matter.
Read above.

The parts are going up, the SP versions still won't hit what they were with previous parts (2006 - 2008 models). But when you apply Apple's margins, particularly to the SP versions (SP will gain a larger market share of the entry and mid level workstation market due to 8 cores on one die) and other vendor's aren't, the price difference will be quite notable.
 
It's part of it, but not the whole story.

The Xeons are getting more and more complex, not just an increasing core count, which increases costs to some extent (even though the process will be smaller than what's being used now, the additional complexity is still going to push the die size up - there's a correlation with pin counts, as we're due for the LGA2011 socket with Sandy Bridge's DP and MP enterprise parts). The biggest price increases from Intel will be seen with the DP or MP parts (dual processor and multi-processor respectively BTW).

But Apple's pricing will be the other, particularly when you look at what's happened since the 2009 release. The pricing continued with the 2010's, so there's no indication they plan to change their pricing structure to better compete with the competition.

The competition is stuff like Dell's Precision 7500 line, and they've remained perfectly competitive. You keep saying the "competition", but the competition for the Mac Pro is not the i7. It's the high end Xeon workstations, with which it remains completely competitive.

For high end workstations, the Mac Pro is honestly the best machine on the market right now, and lots of people are buying it, even to just run Windows.

Have you ever used a Precision 7500? Horrid, buggy machines with awful cases that are a PITA to open. The 7600 is supposed to be an improvement though.

The parts are going up, the SP versions still won't hit what they were with previous parts (2006 - 2008 models). But when you apply Apple's margins, particularly to the SP versions (SP will gain a larger market share of the entry and mid level workstation market due to 8 cores on one die) and other vendor's aren't, the price difference will be quite notable.

The SP versions are kind of a gimme, and aren't really at all in the target market. Workstation users would never buy a single processor machine, except in limited circumstances.

Again, compare to a line like the Dell Precision T7500. That's the target market. If you spec one out, the Mac Pro is extremely competitive.

You keep saying the Mac Pro is not competitive, but I'm not sure the Mac Pro is competing against what you think it's competing against.
 
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