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June 10th, 2009

Apple's MacBook flop - fixed!

Posted by Robin Harris @ 6:38 am

Categories: Marketing

Tags: Apple Macintosh, Apple MacBook, Apple Inc., Pricing Strategy, FW400, Notebooks, FireWire, Hardware, Notebooks & Tablets, Consumer Electronics

6 months ago I asked: Apple’s new MacBooks: flop or fiasco? Apple answered “flop” by backpedalling on pricing, the unibody and FireWire - in record time!

The big loser? Microsoft’s successful ads focused on price. Maybe that’s a card you don’t want to play.

Pricing
The 32% price cut on the slightly upgraded SSD MacBook Air - 1.86GHz to 2.13Ghz - is just a down payment. The big news is the new price point for the 15″ MacBook Pro: $1699 - down 15%.

These new price points are permanent. Despite the myth that Apple doesn’t cut prices, they have moved price points down many times over the years.

But other price drops - and the aggressive “buy a MacBook, get an iPod Touch” offer - portend even more pricing actions for the Christmas season. Apple isn’t about to let Mac momentum die. This is good news for all consumers - Mac and PC.

Unibody
Last November I called the unibody “a costly addition that no one was asking for.” And guess what: no more unibody MacBooks. MacBook Pro’s yes. But now the name MacBook is only on the plastic model.

That’s a great move. Apple needs a price-optimized entry level system. Expect to see even more aggressive pricing on MacBooks now that there are 2 visually distinct brands again.

Firewire
Not widely used on PCs, FireWire is the preferred interconnect for high-speed Mac peripherals. Not only is it faster than USB, but the spec supports up to 45 watts of power at up to 30 volts - great for powering external drives, mixers and other devices without another power brick.

On the new 13″ unibody MacBook Pro FireWire has returned in an even faster 800Mb/s version. An adapter will connect existing 400Mb/s devices.

And on the low-end MacBook? FireWire 400 never went away.

The Storage Bits take
The econoclypse has sobered up Cupertino: Microsoft’s campaign made price an issue that Apple couldn’t ignore. And they didn’t.

Apple doesn’t need price parity with Wintel to keep their business healthy and growing. These price drops affect people at the margin: people who wanted a Mac but found the lure of a lower price too tempting. Some of those folks will now buy a ‘Book.

The big lesson is for Microsoft. The marketing adage, “Win on price - lose on price” applies here.

With the iPhone on a major roll and Mac margins that are the envy of the PC world, Apple is well-positioned to play the price game. Macs get top ratings from Consumer Reports because regular folks like them better - if they can afford them.

Longer term, Wintel has no choice but to build better products - or become the General Motors of the PC world.

Comments welcome, of course. Sure, USB claims “480Mb/s” but that’s bidirectional bandwidth. FW400 is faster and FW800 is way faster. But USB 3.0 is coming next year. . . . And BTW, who is shipping those 500GB 7200 rpm notebook drives? Haven’t seen that announcement.

Robin HarrisRobin Harris has been messing with computers for over 30 years and selling and marketing data storage for over 20 in companies large and small. See his full profile and disclosure of his industry affiliations.


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  • Talkback
  • Most Recent of 200 Talkback(s)
RE: Apple's MacBook flop - fixed!
Compare two different Laptops complete;
Price for your Gateway $1099

But you forget something:
MS Home Edition only - Apple OS X Full Version
Processor speed only 2.26GHz versus 2.8GHz... (Read the rest)
Posted by: macmanke Posted on: 06/26/09 You are currently: a Guest | | Terms of Use
Well  jdbukis@... | 06/10/09
Dump Truck vs Luxury Car  wjanoch | 06/11/09
Well Robin, once again a nice spin  GuidingLight | 06/10/09
The concept of marginal impact is too tough?  Robin HarrisZDNet Moderator | 06/10/09
Doubtful.  ye | 06/10/09
it depends  someitguy79 | 06/10/09
Doubtful.  ye | 06/10/09
Take Econ 101  Robin HarrisZDNet Moderator | 06/10/09
Come on Robin. I expected better from the ZDNet staff.  ye | 06/10/09
Arrogance from the ignorant, how charming.  BillDem | 06/10/09
I know a lot about the only economics that really matter.  James T. Kirk | 06/10/09
@ the guys below  someitguy79 | 06/10/09
MacBook iPod Touch = price cut  Robin HarrisZDNet Moderator | 06/11/09
@Robin  Badgered | 06/11/09
it was a refresh  someitguy79 | 06/10/09
IOW they brought them up to parity with PCs.  ye | 06/10/09
@ ye  someitguy79 | 06/10/09
@someitguy79: Who cares about your experiences?  ye | 06/10/09
@ ye  someitguy79 | 06/10/09
@someitguy79: What stats?  ye | 06/10/09
@someitguy79  rtk | 06/10/09
@someitguy - switching back and fastest laptop  BillDem | 06/10/09
@BillDem: This has been my personal experience as well.  ye | 06/10/09
Have a little trouble understanding that  jdbukis@... | 06/10/09
Well  jdbukis@... | 06/10/09
What If, Maybe, Might have  GuidingLight | 06/10/09
Re: The concept of marginal impact is too tough?  justanitguy | 06/11/09
Your right?  john_gillespie@... | 06/11/09
You're not  arodriguez@... | 06/11/09
You're not a developer  alaniane@... | 06/11/09
Your argument makes no sense.  msalzberg | 06/11/09
Size counts?  nfiertel | 06/11/09
Tell you what...  msalzberg | 06/11/09
Free Software  chromeronin | 06/11/09
If 20% of would-be Wintel buyers decide to move to a Mac...  Cayble | 06/11/09
I moved up from a Mac a few years ago  tech_walker | 06/11/09
Sorry Apple Folks. Linux gets first dibs at USB 3.0!  no_zd_user_name | 06/10/09
Give it a rest already.  ye | 06/10/09
Alert for Mac fanboy outraged  Linux Geek | 06/10/09
LOL! Now I'm a Mac fanboy.  ye | 06/10/09
Shhh...  Fark | 06/10/09
I Wonder ??  kuilboer | 06/18/09
Apple and USB  A Grain of Salt | 06/10/09
No, Apple was a late USB adopter.  Qbt | 06/10/09
well you are somewhat correct  vachi | 06/10/09
Don't forget the....  Erroneous | 06/10/09
Lithium Puncture Water = Bad [nt]  olePigeon | 06/10/09
iPod in the kid's pants was most likely a battery puncture...  nix_hed | 06/11/09
Apple popularized USB, but they weren't an early adopter. [nt]  olePigeon | 06/10/09
Apple forced USB on it's users with the iMac and iBook...  nix_hed | 06/11/09
re: `Forced' USB  WarhavenSC | 06/11/09
why?  richvball44 | 06/10/09
wow i hope they care  vachi | 06/10/09
They don't care. Otherwise they wouldn't be Windows or OS X users. (nt)  ye | 06/11/09
say what?  Badgered | 06/11/09
well no  vachi | 06/14/09
All Two of them ?  kuilboer | 06/18/09
Lame  Fred Fredrickson | 06/10/09
Apple is still too pricey  Linux Geek | 06/10/09
I resent that characterization  davebarnes | 06/10/09
Amen, brother.  Robin HarrisZDNet Moderator | 06/10/09
Exactly the point  someitguy79 | 06/10/09
You could always Triple Boot your Mac. happy [nt]  olePigeon | 06/10/09
Then buy a PC  John Zern | 06/10/09
Well  jdbukis@... | 06/10/09
I would agree with arrogant  davebarnes | 06/10/09
Thankyou  jdbukis@... | 06/10/09
Would you mind....  Badgered | 06/11/09
very few...  doh123 | 06/10/09
Wow, how many insults can you throw out? As for ignorance,  HypnoToad72 | 06/10/09
Correction  jdbukis@... | 06/10/09
my definition  Linux Geek | 06/10/09
Well there's nothing like insulting arrogant adjectives  macadam | 06/10/09
Re:ignorant rich people  Stan57 | 06/10/09
Big time long term Mac user  macadam | 06/10/09
Huh?  Stan57 | 06/11/09
My point is  macadam | 06/11/09
Get over it  Stan57 | 06/11/09
freetards  mattic | 06/11/09
*TARDS  johnfenjackson@... | 06/10/09
@Linux Geek  Axsimulate | 06/10/09
If they can afford them...  pdskep | 06/10/09
Actually, you're wrong about 'basic human psychology.'  msalzberg | 06/10/09
Here's one..  pdskep | 06/10/09
I saw a similar one  John Zern | 06/10/09
RE: Apple's MacBook flop - fixed!  Loverock Davidson | 06/10/09
Ok here's the explanation.  nizuse | 06/10/09
Ok, here's the answer (again)  Loverock Davidson | 06/10/09
Oh my....  nizuse | 06/10/09
No you sure don't (NT)  Loverock Davidson | 06/10/09
Now go spec for spec...  SimonUK2 | 06/11/09
That's not a very good comparison.  ye | 06/11/09
@Ye  SimonUK2 | 06/11/09
@Bored: Dell is higher spec in the most important areas.  ye | 06/11/09
No need to  Loverock Davidson | 06/11/09
Sometimes I wonder about these arguments  DannyO_0x98 | 06/10/09
Precisely. [nt]  olePigeon | 06/10/09
I wonder about them too  Loverock Davidson | 06/10/09
I haven't seen that argument here  someitguy79 | 06/10/09
I have (NT)  Loverock Davidson | 06/11/09
time will tell  richvball44 | 06/10/09
True (NT)  Loverock Davidson | 06/11/09
Reading comprehension. Get some. [nt]  olePigeon | 06/12/09
You're still wrong, Loverock...  olePigeon | 06/10/09
I'm right and you're wrong  Loverock Davidson | 06/10/09
Out of most peoples range  someitguy79 | 06/10/09
It is out of people's range  Loverock Davidson | 06/11/09
No, you're still missing the point...  olePigeon | 06/10/09
I get the point  Loverock Davidson | 06/11/09
|_ You even quoted the answer and you still don't get it...  olePigeon | 06/12/09
Microsoft won't lose anything...  SimonUK2 | 06/11/09
They won't  Loverock Davidson | 06/11/09
nope...  doh123 | 06/10/09
In some situations  Loverock Davidson | 06/11/09
Becomes weeker by what?  GuidingLight | 06/10/09
Win on price - lose on price  Robin HarrisZDNet Moderator | 06/10/09
Illogical Thinking  Loverock Davidson | 06/10/09
wow  someitguy79 | 06/10/09
Actually they do  Loverock Davidson | 06/10/09
again wow  someitguy79 | 06/10/09
"They cost more than you make"  nix_hed | 06/11/09
@nix_head  Loverock Davidson | 06/11/09
Do they?  ye | 06/10/09
better it depends  someitguy79 | 06/10/09
I'm not arguing Apple should compete in the sub-$1000 space.  ye | 06/10/09
Eh?  Sleeper Service | 06/10/09
Good news, but not the second coming of market share  macadam | 06/10/09
@macadam: I've never disagreed.  ye | 06/10/09
@Loverock Davidson  Axsimulate | 06/10/09
I don't understand  Loverock Davidson | 06/11/09
Expensive versus Cheap...  smdunn | 06/12/09
But wait  pdskep | 06/10/09
But  jdbukis@... | 06/10/09
Microsoft seized an opportunity  honeymonster | 06/10/09
Apple's retort is pretty good too  someitguy79 | 06/10/09
That is not my intention  Loverock Davidson | 06/10/09
Seriously look at the time  CowLauncher | 06/10/09
I spend no time "doing stuff to it" with Windows  Confused by religion | 06/10/09
the AV and updates and IE that always works perfectly  someitguy79 | 06/10/09
Pretty much.  ye | 06/10/09
uh huh  someitguy79 | 06/10/09
I don't personally use A/V.  ye | 06/10/09
IT guys can use and mitigate Windows Issues  someitguy79 | 06/10/09
@someitguy79: Not really.  ye | 06/10/09
Yes  jdbukis@... | 06/10/09
except for the spyware or malware  someitguy79 | 06/10/09
Actualy thats not a problem  jdbukis@... | 06/10/09
haven't been infected in years  tech_walker | 06/11/09
Stuff to be done  homant@... | 06/10/09
That goes for any platform though  jdbukis@... | 06/10/09
how many  someitguy79 | 06/10/09
You should know  jdbukis@... | 06/10/09
RE: Apple's MacBook flop - fixed!  someitguy79 | 06/10/09
$1,000 - $1,2000 is considerably lower than $1,700.  ye | 06/10/09
still an easy price compare  coffeeshark | 06/10/09
RE: Apple's MacBook flop - fixed!  MarkWB | 06/10/09
Here is a Laptop  BroGnorik | 06/10/09
Am I going to Hell?  homant@... | 06/10/09
No it does not  BroGnorik | 06/10/09
Thank you both for talking sense  macadam | 06/11/09
RE: Apple's MacBook flop - fixed!  klockheed | 06/10/09
Price drop? Yes, but in same cases features as well.  Nitz_Walsh | 06/10/09
Insightful. Thanks. (nt)  honeymonster | 06/10/09
Isn't that the reason why people buy Macs?  olePigeon | 06/10/09
RE: 500 GB mobile drives  BradMacPro | 06/10/09
No Real savings with price break  Stan57 | 06/10/09
Say what software?  someitguy79 | 06/10/09
You'll need to find a replacement...  msalzberg | 06/10/09
RE: Apple's MacBook flop - fixed!  notlehs | 06/10/09
Why did Microsoft bother  someitguy79 | 06/10/09
They had been playing defense for so long  honeymonster | 06/10/09
@BillDem and @ye last time  someitguy79 | 06/10/09
There not trolling you though  jdbukis@... | 06/10/09
Your message is clear. It's the facts supporting it which are not.  ye | 06/10/09
Forget it guys  macadam | 06/11/09
Living with the enemy  johnfenjackson@... | 06/10/09
Just...  Cosmo54 | 06/10/09
RE: Apple's MacBook flop - fixed!  XArt | 06/10/09
RE: Apple's MacBook flop - fixed!  richvball44 | 06/10/09
I saw no study present. Just a reference to an article.  ye | 06/10/09
Please - MS will Out Live Apple  jpr75_z | 06/10/09
then why  macadam | 06/11/09
well...  Badgered | 06/11/09
How is OS-X better than when Leopard has over 800 vulnerabilities?  Solid Jedi Knight | 06/10/09
RE: Apple's MacBook flop - fixed!  nfiertel | 06/11/09
RE: Apple's MacBook flop - fixed!  jeff.fostermedia@... | 06/11/09
RE: Apple's MacBook flop - fixed!  tmsmqwx | 06/11/09
RE: Apple's MacBook flop - fixed!  sandmanfvr | 06/11/09
Sorry, sandmanfvr...  msalzberg | 06/11/09
It *didn't* go away  mutor | 06/11/09
Big flop is still present  magallanes | 06/11/09
RE: Apple's MacBook flop - fixed!  xperiate | 06/11/09
RE: Apple's MacBook flop - fixed!  WarhavenSC | 06/11/09
Macs are for people who tend to be both anal  tech_walker | 06/11/09
RE: Apple's MacBook flop - fixed!  chromeronin | 06/11/09
RE: Apple's MacBook flop - fixed!  chromeronin | 06/11/09
RE: Apple's MacBook flop - fixed!  rotten.macs@... | 06/11/09
E-SATA???????  fzr600vw | 06/12/09
I'd respect you more if I didn't get so many eyerolls from what you write..  Spiritusindomit@... | 06/18/09
RE: Apple's MacBook flop - fixed!  macmanke | 06/26/09

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