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Stop the Noiz
Debunking the Apple Tax
Frank Fox - 2008.10.31 - Tip Jar
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"The Apple Tax" was a brief MIcrosoft campaign to paint Apple as too expensive. Since then, the discussion has made the rounds on various sites discussing the merits of this idea. Many are trying to show that for a comparable computer, the Mac isn't all that much more expensive.
What an original idea that is.
However, all this discussion is missing is the simple question: "So what if they are?"
What if Macs really do cost more? What are you going to do about it?
Bloggers tried with all their reports of an $800 laptop to predict that Apple would cut prices. Apple showed them what they thought of that idea. Apple's lowest cost notebook starts at $999. That is $199 away from what people claimed Apple should do.
Arrogance?
Is it arrogance or hubris for Apple to think that it can continue to sell high dollar computers?
Seeing Apple's Q4-08 report, it looks like Apple is fully capable of selling in this price range; neither arrogance or hubris is running the show. The facts are out there: Price alone is not the enemy of sales.
What mojo does Apple have that Dell and HP wish they had?
Apple is compared to other premium brands like BMW all the time, but I saw one that makes more sense. Apple is more like Toyota: Toyota isn't a luxury brand. Toyota cars are selling in large numbers and have a slightly higher price.
How does Toyota do it? It works on improving the value of their cars.
Value
Value is the perception of benefits relative to the price paid. The perception of value will drop if you don't maintain the quality of all the little details.
When I opened my Mac Pro to install RAM, I saw that it is just as refined on the inside as outside. That didn't increase the processor speed. It doesn't help protect against computer viruses. At most the clean design may help with airflow, but that attention to detail tells me that someone took more time designing my computer than a Dell workstation.
The value of the new MacBook and MacBook Pro is not the
amount of hard drive space or processor speed or installed RAM, it is
the total attention to construction. I supervise a tooling shop with
CNC machining. I know what is involved in machining the new cases for
the MacBooks.
First off, that type of machining is accurate to within 0.001" or better. Why a laptop case would need that kind of precision is beyond me, but every bolt hole holding that case together will match perfectly every time.
Second, milling is much, much slower than injection molding. A molded plastic part is complete in under a minute, often much less. The same is true of stamped sheet metal parts. Milling everything out of one block of aluminum will take minutes to hours for completion. That case is probably one of the most expensive things included with the new MacBook - yet Apple made that kind of leap in quality with almost no change in price.
Take it from me: Be impressed.
Milling Aluminum Isn't Cheap
Are we going to see $400 laptops from Asus or Dell using the same unibody construction? Hell no! The case alone may cost $100-200 (that is a guesstimate on price), and there are still a lot more parts to add to the computer to finish it off. No one would pay a premium for a Dell made that way unless Dell sneaks it into a $3,000 gaming laptop.
I think Apple has answered the question about the Apple Tax with the latest MacBooks. The answer is that no one else is offering the quality of computer construction that Apple offers in the same price range.
When you walk into your favorite coffee shop with one of these under your arm, you won't have people snickering about how much more you paid. Instead, they will be craning their necks to get a look at how darn good it is.
You can value that any way you want in making your next computer
purchase, but just like Toyota, the quality of the car is at least as
important as the sticker price.
Recent Stop the Noiz Columns
- My Windows 7 Launch Party, 10.23. "The final surprise was that things started to slow down during my demo. I had XP Mode running, several open windows, and a half dozen other apps running."
- Windows 7: Bait for Windows XP and Vista Users, 10.19. While Win 7 is competing with OS X in features, it's target audience is Windows users, not Mac users.
- Windows 7 vs. MacBook, 10.14. A free copy of Windows 7 leads to installation problems and two days of frustration, like no 64-bit Boot Camp Utilties.
- Moving Data at the Speed of Light (Peak), 10.02. Intel's new Light Peak data transfer protocol is designed for 10 gibabits per second, with plans to push it to 100 Gb/s in the future.
- More in the Stop the Noiz index.
Links for the Day
- Mac of the Day: 17" iMac G4/800 MHz, July 2002 - The iMac 'grows up' with a 17" 1440 x 900 display.
- Group of the Day: LisaList supports Lisa users.
- November 8 in LEM history: 99: OS 9: I think I like it - 01: The simplified Mac life - Soured on Windows - Flea market Mac - 02: Little room for improvement in new 'Books - Combo drive upgrade for iceBooks - 04: Re-Porter - 05: Fix the old iMac or buy a Mac mini? - Apple's Copland project - 06: MacBook Core 2 - MacBook value equation - Cheap is as cheap does - 07: Problems with Classic mode in Tiger - The G4 Power Mac that won't run Leopard
- Support Low End Mac
Recent Content on Low End Mac
- Quad-Core CPU Makes Sense in MacBook Pro, OS X 10.6 Causing Overheating, Overseas Power, and More, The 'Book Review, 11.06. Also Late 2009 MacBook reviewed, how to add RAM to new MacBook, 18.4in Acer notebook used Intel i7, and SanDisk SSD chosen for Sony VAIO X.
- Dumping Macs for Google Apps, SSD in iMac, Late 2009 iMac Performance Problems, and More, Mac News Review, 11.06. /newsrev/09mnr/1106.html
- WiFi Paranoia, iMac-O-Lantern, Magic Mouse Does Click, Free Clipboard Managers, and More, Charles W. Moore, Miscellaneous Ramblings, 11.05. Also strange time stamps, problem with ColorIt on Intel Mac, and the story behind OS X 10.5.4 install discs.
- IDE Is Dead; Long Live SATA!, Dan Knight, Mac Musings, 11.04. SATA has displaced parallel ATA. While IDE hard drives haven't disappeared, the best deals are in SATA hard drives.
- QuickTime X in Snow Leopard Imports, Trims, and Publishes Video Quickly and Easily, Alan Zisman, Zis Mac, 11.04. The long, slow process of importing video into iMovie to edit it, then render it to another format, is history as QuickTime X does that much more quickly.
- More links in our archive.
Recent Deals
- Best Mac Pro Deals, 11.03. Used 2.66 GHz 4-core, $1,300; 3.0 8-core. $2,299; refurb 2.66 4-core Nehalem, $2,149; 2.93, $2,549; 2.26 8-core, $2,799; 2.93, $4,999.
- Best iPhone Deals, 11.03. New 8 GB iPhone 3G, $$99; refurb 16 GB 3GS, $149; new, $199; 32 GB, $299.
- Best 12" PowerBook G4 Deals, 11.03. Used 867 MHz SperDrive, $348; 1 GHz, $499; 1.33 Combo, $298; SD, $559; 1.5 Combo, $448; SuperDrive, $589.
- Best Power Mac G3 and PCI Video Card Deals, 11.02. Used beige 300 MHz, $25; G4/366, $49; blue & white 350, $80; 400, $90; 450, $105; PCI video cards from $15; shipping additional.
- Best Power Mac G4 and AGP Video Card Deals, 11.02. Used 400 MHz, $50; 733 MHz, $69; 933 MHz, $209; 1.25 GHz dual, $299.
- Best 15" MacBook Pro Deals, 11.02. Used 2.0 GHz, $800; 2.2, $900; 2.4, $1,000; refurb 2.53, $1,449; 2.66, $1,699; 2.8, $1,949; 3.06, $2,169; new 2.53, $1,579; 2.66, $1,799; more.
- Best Mac mini Deals, 10.30. Used 1.33 GHz G4 mini, $379; 1.42, $389; 1.5, $419; 1.83 GHz Core Duo, $350; Core 2, $439; new 2.26 GHz nVidia, $580; 2.53 GHz, $770; Server, $990.
- Best G4 iBook Deals, 10.30. Used 12" 1.07 GHz Combo, $225; 1.33 GHz, $298; 14" 1 GHz, $349; 1.33 GHz, $398; 1.42 GHz SuperDrive, $498.
- Best Classic Mac OS Deals, 10.30. System 6.0.8 floppies, $10; 7.1, $12; 7.5, $20; 7.5 CD, $4; 7.6 $13; 8.1, $11; 8.5, $20; 8.6, $90; 9.0, $20; 9.2.2, $30.
- More deals in our archive.
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