Where do you check this on the mac ?
Apple makes VG profit margins on all of the Macs. There are no "loss leader" Macs which are dependent upon sales of some other Mac to offset lower than nominal (for Apple) profits on that product.
So users moving down to lower priced products because their workload has pragmatically plateaued and now only really need a lower product is just fine. If the workload has plateaued so much can transition to an iPad. That is OK too.
What Apple isn't going to do is the fraticide flavor of cannibliziation. Where products priced about the same have very approximate peformance/functionality.
If just swapping mini sales for iMac sales or vice versa all that does is just rearrange the deck chairs. It isn't growing the overall Mac market. Rearrangng the deck chairs can't be the primary objective or result.
Most of these "add stuff to the mini so it is equivalent to iMac" tracks basically kill off the mini's margin. What you are saving is not only engage in fraticide, but take less money. It shouldn't be surprising why probably isn't going to go with that strategy. That's pretty much what was done in the early-mid 90's. It was giant bust of a strategy.
The dubious assumption here is that the iMacs can't also be moved forward at the same time. There should be tweaked mobile offerings from both AMD and Nvidia by Q3-Q4 when the updated iMac should be do to roll out.
If Apple upgrades the iMac there is nothing in Apple's strategy against moving the mini up into that vacated performance zone.
The likely problem with the top end GT3 Haswell solution is that it is likely going to cost more. If Intel is bundling the RAM into the same CPU package as the GT3 and selling that bundle they are certainly going to charge a premium for that. Intel doesn't give away "free" any more than Apple does. Apple isn't going to eat that increase resulting in lower margins. So it is questionable that top end GT3 will make the Mini's price point constraints. I suspect there are some TDP constraints too for top end GT3.
There is a range of GT3 HD5200 and HD5100 coming. For the mini's price point it will likely be the more limited one that probably doesn't put an updated, but price equivalent, to a GT640M in danger.
The iMac is higher priced so it can afford better parts with no margin loss
I agree, though acknowledging your points doesn't detract from the fact that profit margins will of course be significantly higher on premium-priced products aimed at the more lucrative, prosumer/consumer market, which the iMac is primarily targeted at.
As I can't stand AIO's (from previous experience) & Mac Pros are overkill for my needs at too high a price, I've added a PC with a decent GPU to my Mini.
However, if Apple had provided me with a more powerful Mini or, preferably, a cheaper upgradable Mac Pro, that money would have gone to Apple instead. I'm confident that many others have done similar to me. They've opted for a Mini & bought a PC, whereas that extra money may have gone to Apple if those said Macs had been available.
Also, as the future design roadmap for iMacs appears to be increasingly thinner designs, it casts serious doubt about how much more powerful GPUs they can use inside some iMacs in future
That is not a fact. A fact is something that is true. Not a choice.
The profit margin on a mini could be 30-40% at exactly the same level as the iMac and the Mac Pro.
The amount of money the margin corresponds to goes up as the prices going up. A 30% margin on $800 is $240 , but on $1800 it is $540 . I don't buy that the price elasticity of someone with an $800 budget is necessarily dramatically lower than than someone with an $1800 budget. Both could perhaps tolerate a 30% swing. However there is no "of course" to the notion that if the price is higher so buyers just throw even more money at the item. There some folks like that. Not most though.
If Apple has a corporate target of 35% margin and all of their major products have 35% margin, it is extremely simple to roll in every quarter with a report of 35% margin.
The problem with most PC companies is that they get into have to sell everything to everybody more. So they have to sell a $400 box. At some lower bound it just isn't practical to go that low and have 35% margins. Apple just skips those markets. Or make other products that can fit in that space with those kinds of markets with very different technology ( iPods or iOS devices that have much cheaper components and volumes ).
It casts little to no doubt. As long as Intel and other fab vendors can keep Moore's law on track and do decent power management the "mobile" GPUs of 2-3 years from not will be just as fast or faster as entry level desktop GPUs of today.
Only the edges of the iMac got thinner. Toss the ODD and have no use for flat edges and ta-da trimed edges. ODDs are not necessary largely through better available alternative tech.
I never really understood that argument. Just because someone isn't a "hardcore gamer" and plays games 6 hours a day every day, doesn't mean they can't want/expect a real expensive computer (mac $$) to look / perform great whenever they DO play those games.
No dual-core mobile chips:If Intel launches in June what would stop Apple from updating the Mac Mini and iMac in October?
Another law with heat-sensitive computer technology is that, generally, the thinner a computer desktop's designs get & the more heat-generated inside,
What people are asking for is a BTO option, with an expected HUGE margin for Apple, that would satisfy the desire of having a discrete GPU in the mini without having to buy a laptop or unwanted built in monitor.Most of these "add stuff to the mini so it is equivalent to iMac" tracks basically kill off the mini's margin. What you are saving is not only engage in fraticide, but take less money. It shouldn't be surprising why probably isn't going to go with that strategy. That's pretty much what was done in the early-mid 90's. It was giant bust of a strategy.
No dual-core mobile chips:
http://www.cpu-world.com/news_2012/2012121601_Specifications_of_mobile_Haswell_CPUs.html
That is also the reason, why we will NOT see a Haswell MBA in this summer. The iMac uses desktop-class CPUs, and should appear in Q4/2013.
Actually, it is a fact. The percentages are not as important as the overall profit gained per Mac.
Surely that was one reason for going with the weaker integrated Intel cards in the 2012 generation of Minis & dropping the more powerful, discrete HD 6630M from the previous high-end Mini.
Let's hope so, but the doubt will remain.
There is no law. Components create the same amount of heat whether in a large case or a small case. The difficulty is with removing said heat from a smaller case. However, with a properly designed case there is little to no issue. It may require the use of better heat transferring materials (oh hey like aluminum that Apple already uses vs plastic and steel) and better designed cooling systems (assymetirical fans that are found in the Retina Macbook Pro maybe?!?!). I expect that the next Mini will probably be less upgradable / thinner / etc. (and if it isn't the Haswell Mini it surely will be for the Broadwell). My guess is eventually (with the exception of the Mac Pro or whatever they call the future versions of those) all Macs will be virtually impossible to upgrade. The way you buy it, will pretty much be how you use it.
You are making it out like Apple is somehow going to lose money on the mini by offering a $200+ CPU upgrade on the top end, non-server, mini.
No dual-core mobile chips:
http://www.cpu-world.com/news_2012/2012121601_Specifications_of_mobile_Haswell_CPUs.html
The iMac uses desktop-class CPUs, and should appear in Q4/2013.
that is largely immaterial. there is little reason to lauch a new iMac if Apple has just recently caught up to demand. So June-August are highly unlikely. They would have just gotten to point had ironed out all the issues before starting up for a another outage for the transition to Haswell. They released late in 2012 so can release late in 2013.
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You say that, but Apple's history says otherwise. The first 21.5" and 27" iMacs were released in late 2009 (in fact Oct 20, 2009). There were major issues with supply.
Guess what? Apple released an updated 27" iMac at the end of July. Meaning that brand new iMac 27" was only on the market for 9 months before it was replaced by an upgraded model.
No, it isn't. If all the major products that Apple sells has 30+% margin profit just happens. It doesn't really matter how many of each are sold. At the end of the year the bills would be paid , the lights on , and Apple lives to fight another day.
Revenues for revenue sake isn't the issue. If talking about what pumps the stock price it is growth. As long as the mini and iMac and overall Mac market is growing that is primarily what "counts". More people think have a "great" collection of products. Apple continues. The objective is to find a larger group of those folks next year. Rise and repeat yearly.
Goosing the margins higher really does nothing positive for Apple. At some point that actually inhibits growth.
Destorying margins on the mini and then trying to make them up with higher margins on the iMac ( and perhaps Mac Pro ) is playing a "rob Peter to pay Paul" game. It typically doesn't work over the long term.
No. The mini has entry model MBP 13" and MBP 15" parts largely to get better margins on both the Mini and those two products by selling more of those parts to get better discounts from the suppliers.
The iMac, other than staying out of its assigned pricing zone of $1000-1,999, isn't the primary issue here.
I never really understood that argument. Just because someone isn't a "hardcore gamer" and plays games 6 hours a day every day, doesn't mean they can't want/expect a real expensive computer (mac $$) to look / perform great whenever they DO play those games.
There was no major issue with supply anywhere close what to the clusterF*ck of last quarter. Apple shorted 770K iMacs. That's alot.
Alot. Back in 2003 Apple sold roughly that many desktops total in an entire year. So marginal launch hiccups that have occurred previously is not even the same scope.
Really? There wasn't?
....
These were just a basic google of 27" 2009 iMac.
With the integrated GPU in haswell, the assumption is mostly plug and play. If they have to redesign the motherboard to switch from a G2 haswell to a G3 haswell, then you have a valid point. The present second tier mini has two cpu options. People are asking for that second or a third to have the G3. IF it is mostly plug and play, the reason for not offering it is to make sure the mini is NOT good enough graphically to take away from the sales of iMAcs and MBPs.They can. If the BTO configuration is overly complex and conflicting that can lead to inventory control problems. Either holding extra inventory or buying parts in too small of orders can lead to increased costs and lower margins.
Yes, more than plug and play, and you have a point. AddThe most stuff the more complex system you have to have to track all of that stuff. Put that on a feedback cycle where it increasing gets more complex and it starts to grow overhead.
This isn't the 90s. You have the mini, iMac and Mac Pro when it comes to desktops. We're not talking about 20+ different version numbers active at the same time like the roaring 90s. All three have their distinct differences.Finally, the more complex the product mix the more you delute your design/engineering talent. Just assigning more bodies necessarily get to better systems (e.g., mythical man month).
So let me get this straight, having another BTO option, that most people won't even know exists, other than another radio button option on the order page, is going to lose customers? I don't think so. Lower complexity leads to better margins, I agree. But then, using that logic, Apple should strive to remove ALL BTO options, right? With their "everything glued one" approach they have undertaken, the BTO options are going to have to increase these days. So that alone tells me that it's not akin to going under, as you make it out to be.There is far more than just a bill of materials and a trusty screwdriver and some thermal paste than go into these products. That's why lower complexity leads to better margins.
Jacking up the BTO options to sky high margins leads just as much to lost customers as additional ones.
With the integrated GPU in haswell, the assumption is mostly plug and play. .... People are asking for that second or a third to have the G3. IF it is mostly plug and play, the reason for not offering it is to make sure the mini is NOT good enough graphically to take away from the sales of iMAcs and MBPs.
So let me get this straight, having another BTO option, that most people won't even know exists, other than another radio button option on the order page, is going to lose customers?
I don't think so.
But then, using that logic, Apple should strive to remove ALL BTO options, right?
All you have to do is look at the iPad mini versus the regular iPad. Someone recently reported that they are likely going to ship more mini's than regular iPads in 2013. You think Apple would want 30% margins on a $500+ item rather than a $329 item?
Do you think they would LOVE to gimp the mini in some way to usher more people towards the regular iPad?
Well, they can do it with the mini, by NOT offering a legit GPU option.