For years I have drooled over Apple’s Macs, though each time I have had to actually buy a desktop or a laptop, I have settled for a PC – mainly because of the cost. I have been hoping that Apple would move into the lower end of the market one day, and this continuing recession made me hopeful that soon Apple too would finally capitulate.
However, this seems unlikely. I read recently that for computers priced over $1000, Apple’s share was a staggering 89%! Though this excludes sales to large companies (where PCs are still preferred), it does show that Apple is raking in the profits.
With its high prices that it refuses to lower, Apple is ignoring large sections of the market. Steve Jobs has been almost disdainful of the low end of the market when he said, “We don’t know how to build a sub-$500 computer that is not a piece of junk.” So far this strategy of stubborn luxury seems to be working, but I wonder how long it will last. Apple rules in design, so maybe until another beautifully designed yet cheaper challenger comes along?
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While I too continue to pine for an Apple Mac and hesitate owing to the price(and my middle class mindset!), I doubt that Apple can be so easily shaken from their leadership position. Apple in fact is much more than a computer brand today- it has revolutionized three different industries- music, movies and mobile phones- while its impact on the computer industry is still huge.
In fact, Jobs has been voted CEO of the decade by Fortune Magazine.
Also, the aspirational value of the Apple brand is very high. So today it is not just about the design, but about owning an Apple per se that people take pride in
it’s not just luxary consumption status and experience is also a part. Price competition is not the way to go for Apple.
Personally I think you are just paying for a superior operating system. I have windows on my mac as well, and I never use it. It feels like a step down