ParisLemon » Where is the sub-$1,000 MacBook?

Where is the sub-$1,000 MacBook?

Russell Shaw wrote something a couple day ago on ZDNet that I didn’t get a chance to comment on but wanted to: why doesn’t Apple release a $699 MacBook?

It’s a great question I think, and one that has stumped me for a long time as well. I simply know so many people who are eager to get a Mac but refuse to do so at the current price points. Sure Apple has the $599 Mac Mini, but this is the age of the laptop, and the cheapest one of those that Apple currently sells is the $1,099 MacBook.

I’ve had quite a few friends who have gotten that $1,099 MacBook over the past year and for many of them (casual computer users) it’s more power than they need. While it’s clear Apple wants to maintain a high level of performance by only offering laptops with Intel Core 2 Duo chips, I am running an iMac with a first generation Core Duo chip, and it is more than fast enough. I think Apple could afford to scale back the specs a bit to be able to accommodate a sub-$1,000 MacBook.

The other issue that comes up when talking about this with others is exclusivity. Some say that Apple at least in part likes – and benefits from – being a more exclusive club. Some Apple users feel the same way. But at the end of the day if they really want to start making quick inroads into the computer market share, the price point is still perhaps the most important thing.

A $699 MacBook would be nothing if not a gateway drug of sorts for thousands of first-time Mac users. If those users are anything like me they will then turn around and buy another Mac as their next computer too – probably a more expensive one (my first Apple was a $999 iBook).

We kept hearing how Apple’s super-secret ‘Thin MacBook’ (now officially known as the MacBook Air) was going to be small and very affordable – but I hardly consider a baseline price of $1,799 “affordable” for most people. Try shaving $1,000 off the price before you start using that word.

Post by MG Siegler on 02/07/08
Comments

Lando

Apple needs to seriously consider this. Especially in the wake of vista. How about outsourcing some of their hardware as well? The only two reasons I won't buy a mac are because of the price vs. other laptops, and the fact that I either have to send me laptop in for new hardware or go to one of those mac stores where two things happen; I wait in line for an hour and I try not to feel uncomfortable as the overly friendly staff continues to stare at me and be useless, and then find out you have to send it in anyway because they don't carry the part in-store. I understand mac is trying to maintain a "high-quality" level by keeping all manufacturing in-house, but the price would go down with outsourcing and I would be much more interested in buying one if I felt that I could go to bestbuy and get a new CD drive or hard-drive. As cool as the gadgets Apple puts out are, y are they seemingly always behind on specs and hardware? it took how long for them to get intel to make their chips? that should have been a no brainer the moment they saw the highest speed apple was 1.6G and windows was running on 3G machines. For a company that claims to be "hip" and "different", I can't shake the feeling that they are more interested in $ than even microsoft

louisgray

It's always easy to get caught up in a product's initial sticker price, and forget about the lifespan of a product or its total cost of ownership.

On average, Macs have a useful lifespan far beyond that of a comparative PC. On average, Macs come bundled with a lot more useful software (for free) than a comparative PC. And the productivity of the typical Mac user is far beyond that of a typical PC user. (No question this is true)

The additional $100, $200 or $400, depending where you look is more than made up for in the first month of using the product.

Take a look at the way Apple offered the iPhone. They offered a cheaper model, but it was the most expensive one everybody wanted. No compromise.

Adam

A large part of Apple's success has been the simplicity of their product line. The customization within Apple's product line has also been straight forward and easy compared to PC companies in large part due to the fact that the buyer always gets a relatively high-end product even at the entry level (there is not much difference in terms of performance between the $1099 Macbook and the $1499 Macbook).

Lowering the cost of the entire Macbook line in the next upgrade cycle with limited spec bumps only to the current $1299 and $1499 Macbooks could create a sub-$1,000 Macbook while maintaining a relatively high-end entry level notebook.

This wouldn't create a $699 Macbook as you suggest (which would be nice), but a $899 price point would still be attractive for people on the edge.

Webomatica

I do think Apple's slightly higher than comfortable pricing is something to consider, especially with sales feeling a bit high as we go into recession.

I have pretty much without fail always bought the cheapest Macs available - as an iMac user and now a Macbook and a Mini. I figure for the price of one tower or MacBook Pro I'm getting two computers that are perfectly acceptable for pretty much all the work I do - it just takes longer.

If Apple came out with a sub $1000 MacBook - say a $899 one - you'd bet I'd buy one - and possibly two :)

MG Siegler

@lando - totally agree that the opportunity is perfect right now given vista.

by the way, they do sell macs at most best buys now, not sure about all the components though.

@louis - that's a good point that I didn't really highlight enough - you're paying for higher quality. but still, while you and I understand that, most non-Mac users don't and just see high prices, that's what I think they should offer just one laptop sub $1,000 as the gateway drug...

@adam - also a good point about the simplicity of the product line. sometimes having a limited number of choices isn't such a bad thing, look at silly vista with their 15 versions...

@webomatica - if apple did release a really cheap laptop i'd probably buy one just out of habit too...

Ryan

Apple is not trying to topple Microsoft or any PC manufacturer. Apple is trying to dig a fortress foxhole in the Personal Computing market.

Their keys to success are quality in design and manufacturing, cutting edge technology/marketing (iPhone screen or Core 2 Duo push), and high profitability.

Their methods are strict control of software to hardware matching, opening new markets (iPod/iTunes & loud/attractive/modern advertising), concentration on higher dollar segment products.

If Apple relaxed its control over what hardware on which their OS runs, they would loose/degrade their market identity and cultivate similar issues as Windows has - needing to work with everything.

Apple's approach to new product development is centered around high profit items. Why concentrate on selling at low profit, when high profit makes more money? A $1099 MacBook yields a much higher profit margin than a $699 PC notebook, even with slightly lower specs. Certainly, more people can afford a $699 computer, but Apple isn't trying to take over the market. They're trying to get the most out of their current market. They understand that someone that purchases a $699 computer to save money will always purchase a lesser expensive/lesser profit product. Thinking that offering an "intro" computer to "hook" new customers into higher profit lines, in this case, does not compile logically.

Instead, Apple uses products like iTunes, iPods, iPhones, and Apple TV to hook new customers. These products have been the major - if not complete - contributors to Apple's growth in the past 8 years.

One last point, you can purchase lower cost parts for a Mac through companies like MacSales.com.

I hope my note aides the discussion about Apple's markets.

loveOliver

interesting

loveOliver

interesting

PaX

Here it is:

Next Apple moves will be Books and Games…

http://spidouz.wordpress.com/2008/09/03/next-apple-moves-will-be-books-and-games

AWESOME!