What the recession means for the Mac
Money gets tight. Buyers get picky. Price-sensitive consumers — the kind Steve Jobs and Apple famously "choose not to serve" — start shopping for bargain basement PCs and Taiwanese netbooks. Mac sales plummet.
That's the conventional wisdom. Or at least that's the line Morgan Stanley's Kathryn Huberty pitched in September — when she lowered Apple's (AAPL) rating twice in two weeks — and reiterated last week, when she earned the distinction of being the first and only mainstream Apple analyst to set a 2009 price target below $100 a share. (see here)
“PC unit growth is decelerating," she wrote in September, "and the remaining source of growth is increasingly in the sub-$1000 market where Apple does not play.”
The only trouble with this argument, as Turley Muller of Financial Alchemist points out, is that it flies in the face of Macintosh unit sales for the first 12 months of the recession.
"Huberty claims Apple is at risk because it’s highly exposed to the premium-end, where demand has been falling," Muller writes in an analysis posted Friday. "However, Mac unit sales grew nearly 40% for 2008, and its share in the premium segment almost doubled. Mac sales have been growing roughly 3x the market."
Huberty, whose Mac and iPhone estimates are among the worst in the industry, has become a favorite target for Apple enthusiasts. (See Why Apple shares took a nosedive.)
But Muller may be the first to put his finger on precisely what she's doing wrong.
"I understand why consumers aren’t paying-up for Windows PCs," he writes. "How are HP, Dell, Acer, Toshiba, etc different from each other if they all use Intel chips, run Windows, and have many other of the same components?"
And because the PC industry is so dominated by Windows PCs, the dynamics that drive demand for Microsoft (MSFT) Windows machines are going to determine what demand for the entire industry looks like.
But, as Muller points out,
"Macs and Windows PCs are not similar product offerings. Some analysts, notably Huberty, appear to conflate the two. Macs are Windows machines, for one can install Windows OS on Mac hardware and use it just as if it were a Dell or HP. But, PCs such as Dell and HP can’t run Mac OS."
"Therefore," he writes, "it’s Windows PC demand that is shifting to the lower-end" (emphasis his).
Muller's analysis suggests that Apple was right not to offer sharp Black Friday discounts and to stay out of the business of making $500 computers — the kind of "junk" Steve Jobs says Apple's DNA won't allow it to ship.
Even Muller concedes, however, that no company is immune to the effects of an economic downturn of this magnitude. He argues — as others have before — that once you've tasted the benefits of the Mac OS, it's hard to switch back. But with money tight, buyers may be less likely to explore the high-price offerings in the Apple Store.
"The recession won’t cause cheap Windows PCs to take sales away from Macs," he concludes. "Instead it will slow the rate that Macs take share from PCs."
Click here to read the rest of Muller's piece.
I use both but prefer PC. Not saying it is better or anything. I think it is similiar to automatic vs manual transmissions: while an automatic is more expensive, it really takes care of all the small things for you. On the other hand, if you know what you are doing with a stick shift, you will end up getting more power and better effeciency.
Wow, cant believe the bickering that is going on in here. Seriously? There is no comparison. One was built for design, graphics…the other for word processing, tasks, personal scheduling, comprehensive projects, and personal communications. I have been building PCs for over 10 years, And I love them. However, I also use a mac for my media developement. Love what it can do. But thats where I stop. I have a iPhone, LOVE IT! What I dont love about my Mac is the "other " software that you get stuck with. Safari…sucks. Leopard….sucks *ss. No substancial word processing programs for mac. When running safari and opening leopard as well..FREEZE!!! Every time I try to do more than one task at a time it boggs down and quite frequently gets stuck on stupid. My mac I have through my work. My PC….is mine. I had a choice to buy either one 6 months ago, price not a issue, I battled it out in my head and eventually decided that PC was for me. Brand new Dell, built to my specs and needs. The thing blazes. No viruses, no program hickups, no FREEZING or getting "STUCK" on stupid. Im a pc kinda girl…with a little spot in my heart for my MAC and iPhone. CAUSE THE pc IS PERSONAL AGAIN.. :0)
Apple also has started doing something that the others have not done; provide an ever increasing number of quality tutorials that help insure both new and long time owners that they can easily use the power of their Mac's to do things themselves that PC folks can only dream of!
I call this Apple Magic; when you see users scroll with just their fingers, put together a movie and post it on Mobile Me, sort & tweak photos like a pro in Aperture 2 or just stare into their 24" iMac "personal drive-in movie screen", then you'll realize that Mac users are "one with their Mac" and for them, PC's are now just part of history…
Nearly half the laptops that I see students at my state university purchase are macs. I'd make the arguement that the demographic is much lower than 40.
Has anyone done an age demographic on Mac buyers? I do have a suspicion many of them are older (say, over 40) and that Mac will eventually die as it's constituent population dies off.
I use PC's at home and they're great. I use Macs at school (I have 30 laptops in my classroom, and one for me) and they freeze up a lot. You get used to that spinning color wheel a lot (and having to remove and replace the battery when it really freezes up).
Mac is not an ironclad product, nor is a PC. What I like about a PC is that if something goes odd, you can find multiple ways to go in and find a way to get it to work. Not so with Mac.
I DONT THNK A BAD ECONOMY CAN EFFECT THE PURCHASE WHEN YOUR COMPUTER BREAKS YOU NEED A NEW ONE ITS LIKE BUYING RICE GALLERY84.COM
let me throw this into the mix…
What if the apple Macintosh Operating System were opened up (i.e. sold to) other computer hardware manufacturers?
Do not say it will never happen, most said Mac would NEVER go to Intel. Well?
I am most likely on a track like millions. Used to hate the Mac concept. (for 20 years) Resented Apple pushing it in schools. Then I bought an iPod. Impressed that it never broke. simply did what it was suppose to. so i bought an iphone. Same. So I bought a mac book. no more frustration. so I bought aapl. Get it? the ipod spurred phone sale buy-in which will spurr lap top sales. Huge growth will come. My only problem is with software selection for work for a small office. Is there anyhting mac has that is as good as outlook for email etc AND tasks?
It's amazing how Apple owners act like their **** don't stink. My coworker was braging about her $1,500 purchase last month and her HD crashed within 4 weeks of her purchase. When she tried to bring it back to Best Buy – they said she needs to visit the MAC store as they only have a 2 week warranty on the machine. 2 weeks!!
I've had my PC for 2 years now and no problems. I guess shelling out the additional $600 for looks isn't what it's cracked up to be!
I get a kick out of all the PC people that build their own computers… do you also build your own telephones, kitchen appliances, amps and speakers, cars, TVs, …? Most people don't.. They want something that works well out of the box and will last more than a few months to a year. That is why people with common sense (that desire to have a life outside of a "garage workshop" festooned with old ram chips and stacks of SCSI drives gathering dust) buy a Mac!
Apple will suffer slowing sales just the same as every other company and it really has little to do with the fact that they are (or claim to be anyway) a premium product.
As a tech enthusiast and long-time builder of my own PC's, I don't have a reason to buy Macs. I build my PC's to run rock solid. I haven't had a virus since highschool and I don't run anti-virus software not to mention I fixed it myself.
Unlike other PC fanboys I realize few people have the same knowledge as I do. I've spent ALOT of time fixing friends and relatives computers and I personally couldn't be happier that my girlfriend has a Mac.
She has had a comparably good experience compared to her old Dell. Her Mac still crashes and bogs down and the battery life is pretty paltry but she had a littany of problems with the Dell that stemmed pretty much entirely from downloads and shady web sites.
They have a place in the market and the average person that doesn't have the knowledge or time to keep a PC running right has a fair option even though I think the price point isn't quite right.
Once you used Mac you can never go back !
I use both, at work (unfortunately) a pc and then at home a Mac..there is absolutely no comparison Mac is the world to be in cause life is simple and we should keep it that way…
Interesting that Apple squishers show up whenever a Mac article is written. I switched from Windows when it was 3.11 for Networks. Why? Because it was poor and still is. Wonder why most network folks use either a Mac or Linux? Not because they are invulnerable (they are far from it), but because they WORK. I use a Mac, it hardly slows down. I use WindowsXP at my workplace, open five applications, and sit there switching from window, wait a couple of minutes, switch to another window and go through the same game. I have an average of five applications, sometimes more, on my Mac open and it remains 'snappy' all day long. So, if I want to get some work done, I use the Mac. If I want some work, I look to Windows.
While I agree & disagree with most comments.
I am still stuck. Here's why;
A)Laptop/Notebook (in the case of Apple) choice.
In the lower end target market of Apple, £ for £ (or for those less travelled 'pound for pound') can easily be beaten by other competitors. Specially in terms of price & performance.
However, if you're looking for a high end desktop replacement, you're simply stuck.
The child in me wants to slap that creditcard down and upload my version of "unboxing" of the new shiny toy on YouTube.
But the adult in me, hesitates. Is it really worth the price?
Also, Apple hasn't given its shareholders any dividends since…well long time. This smells a lot like the current Coutts investors problems.
Uploaded via Blackberry.
No not the "touch/click-berry"
Eric – What a Maroon! I'd swear that you didn't read the article. Apple doesn't want everybody to be on the Apple platform…Only those who appreciate the difference. You don't so what's the worry. Apple isn't going to put anyone out of business, I doubt they even have ever wanted to.
Now of course, MicroSquish (your fav perhaps?) would indeed put everyone else out of business in a heartbeat if it could.
There is so much wrong with what you have to say, it's impossible to know where to start.
"Who needs third party anything, Apple has it all and Apple knows that this is all you need so thats all you get."
Anyone can produce an app for an Apple machine. At the moment, Apple happens to produce software that seems to work the best with their machine. Integrated. What do I and many other consumers want out of a computer? I want it to run like a toaster, a car, or a TV. I want it to be useful right out of the box. If I wanted to spend my evenings parting together Frankenstein, and shopping for the best app around this month, I'd be doing it.
In terms of building a machine that's "10X" more powerful than a mac for the same money, good luck. I'll run a stripped down powermac upgraded w/ third party ram against a "backyard" PC any day. It's like comparing a chopped up Camaro against a new 'Vette. Sorry, I'll take the Vette any day.
I'll go as far to say if you spec out a PC from Dell or HP to a similar Mac, spec for spec, the mac is not that if at all more expensive. And folks, the fastest Vista notebook out there is, you guessed it, a MAC!
I find the the constant bickering of Mac and Windows users amusing. I have been using the Ubuntu Linux OS for the past three years. It can do everything a Windows and a Mac OS can do, it can be installed on a PC or an Intel based Mac, and all of the software is 100% free of charge. If you can install Windows or Mac OSx, then you have the skills to install Ubuntu Linux as well (not to mention a wide variety of other distributions).
Having said all that, I would never sit here and boost that I think Linux is BETTER than Windows or Mac. I use Linux because of my personal convictions, just like Windows and Mac users. We all still surf the same web, listen to the same mp3's, and communicate through the same email and instant message protocols.
What's wrong with variety and freedom of choice????
I have been in the technology field as a technician for over 19 years. We can debate the pros and cons of Apple's OS and Micro$ofts OS. I've used both extensively and have chosen Apple's more for the time saved not having to try to get/keep the computer working, or installing anti-virus software and updates and other maintenance tools required by XP.
For the past 10 years or so, my wife and I have committed to buying products with high build quality, whether it be furniture, a snow blower, kitchen faucet, or a computer. Anyone who has 'looked inside the box' of an Apple will appreciate the build quality. We have a 4 year old MacBook that still works great and meets our laptop needs, dare I say still exceeds them.
Those who believe all computers are built the same will jump on the $300 'best buy'. They'll do that 3 times before I replace my $1,000 Apple once.
I've also built computers to run Microsoft. Even with building a computer yourself, for each component you have to choose quality or price…basic economics…
quality…or price…quality…or price…Apple…or..????
@maddawg:
I'm sorry, I usually don't feed the trolls, but your comment is just irritable enough.
You counter a previous statement about getting a lot more for your money with a Mac by arguing that you can get a more powerful and capable machine for less. You further argue that you can do 10x more 'faster & better' because you insinuate that those who 'KNOW' how computers work should build your own.
Your statements completely miss why someone would pay a premium for a Mac and why their continued success has little to do with getting more computer for less. Which, incidentally, is the same error made by the analyst in the article.
While one can certainly build a more powerful desktop machine for less, nothing is guaranteed to work together. Can you imagine a 65-year old trying to download Windows drivers for all of the equipment? Also, the market for desktops is rapidly dwindling as folks move to mobile form factors. So, unless you are extruding plastic or drop forging aluminum cases, good luck 'building your own'.
Many folks, particularly those who are not as computer-savvy, opt for the promise of a simple machine, with significant built-in software capabilities that works straight out of the box. Apple stores provide training, demos and personal help. Software and service have become differentiators when hardware has become a commodity. And, in that regard, Apple beats most others hands-down.
So, try not to be insulting by professing some imagined knowledge about computers (btw, knowing how to plug video cards into a mobo doesn't really count) and come to terms with the fact that other folks aren't like you, have different values and opinions, and, quite possibly are intelligent people who just don't want to fuss around with a computer anymore.
I have to wonder if Huberty is lowering her price target on every luxury car maker for the reason that they are choosing to not compete with Kia and Suzuki. Heck, you can clip Honda for that choice, too.
Nobody is going to buy a Harley ever again because there are less expensive motorcycles available. Why stop there; nobody is going to buy a motorcycle again because a bicycle is cheaper. "They both have two wheels, they must be comparable."
Canon is never again going to sell a digital SLR because point-and-shoots are cheaper. Canon is not going to sell cameras because there are cheaper cameras available.
Or how about this: sell gold and platinum; people will only buy silver going forward because it's cheaper.
"i’ve said it before, you get what you pay for. yes, you pay more for a mac, but you get a heck of a lot more for your money than you would with a pc."
Correct, but windows market share is a problem is Microsoft wants to add any goodies to the OS. Apple loads it all in and wants you to only use Apple software if possible. Apple is the next step below whatever Microsoft has done in the past and they get cheers and applause by those same people that claimed foul for so many years. Double standards and Apple is riding the wave on the backs of the fools. Feed the monster it has more markets to grab and do away with the competition so that we can all use Apples and Apple software. Who needs third party anything, Apple has it all and Apple knows that this is all you need so thats all you get. Apple knows what is best for you.
i absolutely disagree with joel's comment about 'you pay more for a mac and get a heck of alot more your money than you would with a PC'.
that is the absolutely techno noobiest thing i've read in a loooooooong time!
with apple, you NEVER get more for your money than you can for the same amount with a PC.
i have PC's that cost me half of what the top of the line macs cost and they do 10x more, faster & better than those macs.
NOW…lets understand something, if you're technologically challenged you can either buy a pc off the shelf of your nearest computer store, or you can buy a mac….either way, you've likely paid more for something than it is worth and have ZERO idea of how it really works.
(you just need to click a button to turn it on and click a button to get or your web browsing…)
for those of us that actually KNOW computers and how/why they work the way they do….build your own!
you get 10x plus more power, speed & capability than any mac can provide and you can do it for much less cost than that oversized paperweight that apple pushes.
as long as apple continues to use typical technology available to anyone and put that in a shiney package and inflate the price 400-500%, they'll NEVER be able to offer more in their products than you can get with a PC for the same price….
i say good for apple that it's found a niche consumer base of people that are enamored by shiney objects and will then pay exorbitant amounts of money for that object; just because the person can be dumber than a stump and still use the product….
(i mean really, somebody has to cater to the, how do i say….less mentally capable lemmings)
Muller is spot on with his analysis and Huberty has missed the boat 'big time' with her "hasty generalization". Macs and PC's, while they both can now run Windows, are two very different animals. Those that run PC's, will in fact migrate to the best deal when it comes to price, while those that use Macs, will not. There is no substitute for a Mac…there are no Mac clones, and when it comes to a Mac, those that use them will not use anything else. While the economy is in the down turn that it is, all sales across the board will slow and even slide, but a recession will not turn a Mac user into a PC user because of a few hundered dollers! This is EXACTLY what creates the momentum that Apple has. Apple has the utmost when it comes to brand loyalty and its customer base is not willing to sway. This gives Apple that extra "magic" if you want to call it that when it comes to its stock. Apple has no brand substitution….just loyal customers…the most loyal in the world!
i've said it before, you get what you pay for. yes, you pay more for a mac, but you get a heck of a lot more for your money than you would with a pc.
I have never gotten a PC virus in my life. I have my PC updated automatically, I use a free AVG virus scan, Gmail web interface. Windows XP is solid. However Mac OS X Leopard is pretty nice too. What you can do is buy a cheap PC netbook and install Mac OS X on it (google it). I use both. For those with Windows and they "claim" to get these viruses and malware, perhaps you should stop visiting porn sites, download illegal mp3s from shady sites, or dont click on links from random people. I had a friend get a bad virus and I asked what did they do? They tried to install this stupid holiday screensaver. WHY would you want to do that?
Kathryn Huberty? Analyst? Morgan Stanley?
iTV's next… wait and see !!!
Message sent using my MacBook Pro
Apple fans will always come unglued the instant their "precious" is not given glowing reviews. If they want to be delusional and keep thinking AAPL is not going to be affected, let them. AAPL-tards seem to miss the giant clue that they are being bent over and Ol' Steve is running it into them pretty good. AAPL machines are NOT different from a DELL, HP, ACER, or any other X86 based machine. Cry all you want, you're now just like everyone else. Also, its pretty easy to make OS X run on ANY x86 based machine.
How come "journalists" never do articles on all the FLAWS APPLE PRODUCTS DO HAVE?
And to all the people who say "I am in media, I HAVE TO HAVE A MAC" obviously AREN'T in any type of real media production environment…since well…ya know, all the same software is available for Windows….
"But, PCs such as Dell and HP can’t run Mac OS.” This is because Windows is built to run universally – on any hardware setup, while Mac is made to run only on Apple hardware. This does not mean that Mac is too sophisticated to run on Windows hardware or that Windows sucks. Muller needs to do some research.
The consumer is hurting, no doubt about that.
But, it's important to note that Mac sales as a percentage of unit sales will indeed fall because of the new ultracheap netbooks. However, the Mac as a percentage of revenue will look pretty good for a recession.
I'd like to see the Mac vs PC numbers *excluding* the netbook category and then compare those. I bet we'd see traditional trends continuing quite clearly. PCs that make any margin (but still not an Apple margin) will be tumbling even harder than Mac due to the netbook growth.
Fanbois who buy crap PC's while living in Moms basement in Rockland Maine. Rockland Maine??? Ahhahhhaaa! lol
In 2008 I was going to upgrade to the same line of computers I was using both personally and professionally. I use Dell, however, some of the notebooks that I wanted did not come with windows xp. I wanted windows xp. I did not want Vista and I was really getting tired of m$ always making my life complicated.
I have now switch some of our systems over to Mac and have loaded windows XP on one of them.
A friend has now converted to new Macs, both desktop and notebook. And, I plan to purchase another Mac. Why? Using a Mac is a lifestyle choice. Everything works. I am willing to pay more for that. Period.
How many versions of Vista are there? How many versions of Mac OS. Enough Said.
Everyone characterizes Apple products as "consumer discretionary" products. There is certainly a big consumer component, but everyone I know who uses Macs use it to:
a) make a living with media
b) support a hobby which they hope will one day turn into a living
c) People like me – independent developers – who like having one machine that plays well across 100% of the spectrum: Mac, Windows, UNIX/Linux, client and server
For me, time is money and I dont want to spend any time babysitting my computer. I will always buy high end machines. For the class of machine I buy any savings between Mac and windows is marginal.
A bigger threat to Apple is the breakdown of Moores law which means computers are not getting faster with each generation.
Apple recognizes this which is why so much of the focus of Snow leopard is on internals, SMP and 64 bit. It is also why their investment in PA Semi is significant and why it's cash resources, control of hardware and software will pay dividends down the road.
Wow, the Kool-Aid runs fast and deep here. The last computer I bought I paid $298 for. Got it at Walmart as a pre-black friday deal. This laptop runs great and is a great design with a great keyboard and trac pad. Why anyone would need to spend $801 more for a mac is beyond me (I work on them, so I am familiar).
Seems to me that people who spent $110o on a laptop will be, allot like the people who spent $800k on a $400k home in CA, disappointed.
Apple fan boys would be much better off buying a $300 laptop and putting that $800 differential into AAPL ….
What the Mac naysayers overlook is that Windows PCs and PCs aren't perfect substitutes. I've been using Windows machines all my life but will probably get a Mac within the next month or so – recession or no – just to get the Mac OS and finally be done with Windows. XP has been ok albeit clunky, but Vista holds zero appeal. BTW, the Apple Store I visited here in the northeast amid a snow storm Saturday night was packed. They must be selling something.
Finally a sane analysis!
This recession is going to be deep and long. It will not turn into a true depression only if we are lucky. Therefore, all businesses will be affected – including (I hate to say) Apple.
People here speculate on the buying psychology with comments such as a flight to quality. The reality is (IMHO) is that every individual has their own psychological attitude, and their own financial limitations.
And so, while everyone's comments are valid to a point, it remains to be seen how this whole situation will play out on a global, national, macro/micro levels. The same holds for Apple. Personally, I have confidence that Apple will weather this much better than most other companies. If this downturn is longer and deeper than people expect, then of course they will also be hurting. They will, however, continue to be the company that provides the best quality, most user-friendly, and innovative products on the market.
Looking over the Amazon best sellers list is very interesting. Apple only has 6 in the top 25…but if you add the sales price of PCs (all vendors) to the Apple laptops, you get 8K PC to 8K mac, meaning Amazon is selling a lot of really cheap PCs with razor thin margins. The only high-end computers being are Apple, with industry dominating margins. I know which products and customers I would rather have/produce…Apple is in the driver seat long term, short term who the heck know, but out of this recession 1-2 years from now, Apple will be a monster…
The aggregate cost of owning a PC ends up being more. All of the time/effort/additional software necessary to keep them running creates a product with an exorbitant cost for poor performance. Save yourself time/money/head aches and evolve to a Mac. Huberty clearly misses this reality. Personally I was agnostic for many years on the PC/Mac front. Eventually I could not afford to own a PC so I switched 100% to Macs.
Mike Smith, use a Mac for 10 days then sit down at a Windows machine.
You'll think that you stepped into a time machine dialed for 1997. Yuck!
PED, I want to commend you for a very insightful article. Apple's strategy is often counterintuitive, and that's why few journalists, and seemingly fewer analysts, get it.
It's like El Jobso says, don't skate where the puck is; skate where it's going. (Original credit to Gretzky for that)
PS As an aside, I just have to chuckle when people suggest the low-price strategy for any company, especially one for whom people will pay a premium. Do you really want to get into a netbook price war? Why don't you just equip your headquarters with a heating system that burns $20 bills, that would be more profitable.
I used PCs at home for years and experienced nothing but viruses, no matter what virus program I installed. My high-end Sony Vaio media center PC finally succumbed to one of them, requiring a very expensive trip to my computer technician. Two weeks after I got it home, the same thing happened again. My solution to the problem? Switch to a Mac. I had used them in my job as a journalist, so it was no big leap to make the switch at home. It's the best thing I've ever done. My iMac runs the Internet without a hiccup, and I can browse uninterrupted by pop-ups or other annoyances that are typical of the "PC experience." It wasn't cheap, by any means, but the peace of mind I get using it is well worth the cost.
Someone stated there's no point in buying a Mac if all you're going to do is browse the internet, but I must disagree.
If ever you wanted to surf the web and potentially have things installed on your PC without your knowledge, Windows is the best move. Understand????
Bad vista and hence Mac gains. ..,,
This will continue until Windows comes up with a robust OS. No one would like to spend huge money to buy Macs as the life cycle of laptops is not more than 2 years, in the sense, you have to spend more and more to maintain your mac. Actually you can buy a PC with that maintenance and get new features.
Mac survives in the premium market for some more months
It is certainly unlikely that Apple will not be effected by the economic downturn but I believe they will not be hurt nearly as much as some would forecast. The reasons are several:
The coolness factor: If you can afford it Apple products are still very desirable compared to many of the competitors, even when they seem to be equivalent. As an example how many people are buying someone a Zune this year for Christmas.
This is the year of the big gift: Rather than spending too much on lots of gifts this year many people are just buying the one big gift that is desireable (i.e Wii, iPhone, computer etc.)
Integration: Apples products (like the iPod and iPhone simply work very well together creating a demand for more Apple products from those who already own one.
iTunes: No one has been more successful integrating downloaded music with a player. Of course this also has the added benefit of having the Apple name right in front of someone regularly, even when they are accessing it on a PC.
And the Big one…Apple has convinced the public of that old adage, You get what you pay for when you buy an Apple product. That rule has managed to get companies who sell quality goods through good times and bad. People won't spend money just for trends in bad times, but often they will spend more for what they believe to be value in tough times because they can't afford to not buy quality. Pundits have not realised that Apple products are seen as value for the money, they believe that Apple is seen only as trendy. When Steve Jobs talks about not being interested in serving certain markets he is referring to those who shop purely for price rather than value.
Apple is dependent on 3 different product lines
1)mac & laptop
2)ipod line
3)Iphone
My concern is Mac desktops, they are the mose expensive and prone to a slowdown.
Laptops seem to be doing very well.
Ipod has become a redundant line of products there are several copycat models and the Iphone basicly incorporates the same technology,
My gut tells me Iphone will be a big winner this year, They will bring in a big chunk of earnings and Apple will do better than some fear.
Actually Mike Smith, it makes perfect sense. Macs do not crash like windows pc's so u can surf the net longer and without the hassles. Also Macs do not get viruses that can cripple the machine like pc's. Yes there is a premium on buying a Mac, but in all honesty, it is worth it. I will never buy a windows machine EVER again.
They are easier to use, break down less often, and another point worth mentioning…if u decide to sell it later on to upgrade, they gain a higher resale value. This is similar to comparing a BMW to a Ford.
I rest my case. Buy a mac for 2 weeks and take it back…if you would want to return after those 2 weeks.
When I make a financial mistake or finances are tight for any reason, my concern is no to spend less money, but to spend money well.
Whether this downturn lasts six months or six years, my new unibody Macbook will be strong, fast, secure and backed up without me spending another penny on it.
Here is Amazon's top 25 selling laptops. http://www.amazon.com/gp/bestsellers/electronics/565108/ref=pd_ts_e_nav
At the moment I write this; 3 of the top 15 are macs. The rest are under $500.
On the comment “Macs and Windows PCs are not similar product offerings.” I disagree with this comment because today’s PC or Mac centric world has been changed by the Internet. People today buy PC’s and Macs mostly to browse the Internet and the Internet looks the same on Macs or PCs and it does not make sense to buy high PCs or Macs for the purpose of just browsing the Internet.
Was Kathryn Huberty a "Risk Manager" for Morgan Stanley before she became an Apple analyst? She has one of the worst track records on Apple of any other other analyst. With the exception of Meredith Whitman, the opinions of all these analyst are suspect. They got their own sector wrong. They should all be sent back to school at taxpayer expense of course.
To who It May Concern:
I am the CEO of a large company myself. What does not make sense to me is all the negative press about apple. The stock is around $90 a far cry from its high. 2) They have $24 billion in cash on their balance sheet and great ongoing cash flow/gross margins 3) Arguably the best technology products available 4) Even in a recession the uniform platform and its growth products (iPhone) actually saves the user money through efficiency. It is this efficiency and time savings that every smart business professional and even mid level employee wants. 5) Steve Jobs is the founder of this company. However, he does not lay out visions or a vacuum or without consultation of other equally intelligent individuals. The success of Apple due to the way he has built this company is not dependant on one individual.
Two questions/comments:
A) Enough is enough. This should easily be a $140 stock even with the recession.
B) Why does it seem that no one realizes these facts? Especially those analysts?
Frankly I think that the reality lies somewhere in the middle.
The MAC growth will stall and probably fall more than the Apple fans currently believe it possible.
Peoples attitudes towards "Wow at a high price" is diminishing greatly. It is a giant shift in mindset driven by the terrible economic decline and massive wealth destruction that has occurred over the past 15 months.
Use both and have used them since 1984. PCs are best for corporate networks because configuration is uniform and straightforward. Macs are easier to use and more effective due to graphics and ease-of-use especially among the scientific community. Apple sets the price for this convenience and does not budge.
For my part, networking Macs is more difficult because of the multiple OS's which you must deal with Motorola 68000's (pre 8), Power PC's (9 and X) and Intel based Macs (X 10.5). This is a pain even when doing the latest Macs. Apple prefers that you "dump the old products" but not all do. (Home is a Mac graveward with System 7 and 8 era Macs and the appropriate applications. Also have PCs with XPpro, Vista).
Networking Mac/Win documentation is hard to find on Apple's web site because the intention is to focus on Mac-Mac and Mac->Apple products.
When networking in an academic environment one must deal with cross-platform compatability which a pain. It is generally easier to stick with one platform or the other. Choice of platform is dictated by what applications you need.
Think of it this way. Apple has rationalized product lines and focuses on the top end. Focusing on Unix (10.x) and iApps has led it to abandon its earlier users and build huge reserves. MS has to deal with backward compatability and the need to support an infinity of platforms.
When Jobs is gone, Apple will have a tough road to hoe and it may need to survive through acquisition.